The United States trustee called for the appointment of a Chapter 11 trustee citing concerns of gross mismanagement as well as possible conflicts of interest surrounding the hospital’s relationship with Revival Home Health Care, which is helping to fund the hospital’s reorganization efforts, according to the report. Specifically, the U.S. trustee voiced concerns of a conflict of interest between Revival and its CEO Todd Miller, who previously served as revival’s COO.
Revival has offered an $8 million loan to keep the hospital open, but the deal could be withdrawn if a trustee is appointed. Without the financing, the closure and liquidation of the hospital is likely, according to the report.
Last week, New York’s Department of Health shut down the hospital’s lab for 30 days, citing the lab’s failure to meet accepted standards. The move also prohibits the hospital from accepting new patients. Following the shutdown, more than 200 of the hospital’s employees were laid off, according to a New York Daily News report.
More Articles on Peninsula Hospital Center:
NY Health Department Shuts Down Peninsula Hospital’s Lab, Orders Inpatient Transfers
New York’s Peninsula Hospital to Unveil Reorganization Plan
Peninsula Hospital Deal at Risk After Creditors Ask for Say in Restructuring
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
