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Competing Offer Threatens Montefiore Med Center's Acquisition of N.Y. Westchester Square Med Center

A group of real-estate investors have submitted a bid for New York Westchester Square Medical Center in the Bronx, challenging Bronx, N.Y.-based Montefiore Medical Center's agreement to acquire the financially struggling hospital, according to a Wall Street Journal report.

In December, it was reported that Montefiore Medical Center had reached an agreement to purchase WSMC and turn it into an ambulatory surgery and primary-care facility with an emergency room. Financial terms of the sale were not disclosed.

Montefiore's plans were met with outcry from some physicians and nurses of WSMC who believe the hospital's current operational set-up is vital to its community. In addition, WSMC has been struggling financially under Chapter 11 bankruptcy protection, and a takeover could mean mass layoffs.

According to the report, in the competing offer, real-estate investors have offered to pay $14.4 million for WSMC's assets and would lease the facility back to the hospital, which would allow it to continue operating as a non-profit with the same board of directors.

According to the report, Montefiore and the investors will compete to purchase the hospital at a bankruptcy auction Jan. 23.

More Articles on Hospital Transactions:

Edward Hospital & Health Services, Elmhurst Memorial Healthcare Plan to Merge
Rutherford Regional Health System Signs Memorandum of Understanding With Mission Health
A Look at the Activity, Future of the Hospital M&A Market

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