Northwell Health to the rescue with $700M Brooklyn hospital overhaul plan

Great Neck, N.Y.-based Northwell Health and Gov. Andrew Cuomo's administration are in talks about a rescue plan for Brooklyn's distressed community hospitals, according to Crain's New York Business.

With fewer than 15 days cash on hand, four of Brooklyn's hospitals are on the state's financial distress watch list. These hospitals, along with many others in Brooklyn, are undesirable from the view of would-be acquirers. The state has reserved about $700 million to overhaul the healthcare delivery system in Brooklyn, but big hospital networks are hesitant to sacrifice their bottom lines to save the distressed hospitals, according to the report.

Northwell Health could be the hospitals' savior, as the $7.8 billion health system is interested in expanding its presence in Brooklyn. The system is in talks with state officials about a plan to create and manage a network of hospitals, ambulatory surgery centers and primary care clinics in Brooklyn. Northwell Health is already in a partnership with Maimonides Medical Center, and the new network would include Brookdale University Hospital and Medical Center, Interfaith Medical Center, Kingsbrook Jewish Medical Center and Wyckoff Heights Medical Center.

There is still a lot of work to be done before a management contract is signed, as there is no agreement on a feasibility study. A feasibility study is likely to show some of the struggling hospitals, including Brookdale University Hospital, need to downsize or close, according to the report.

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