Brooklyn Health Partners Commits $250M to Win LICH Bid - The Jewish Voice
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Monday, July 4, 2022

Brooklyn Health Partners Commits $250M to Win LICH Bid

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Long Island College Hospital has been losing an average of $13 million per month and the new ownership will release state officials of the responsibilities to subsidize it. Brooklyn Partners will turn part of the Cobble Hill property into apartments and commercial space.
Long Island College Hospital has been losing an average of $13 million per month and the new ownership will release state officials of the responsibilities to subsidize it. Brooklyn Partners will turn part of the Cobble Hill property into apartments and commercial space.
An agreement approved by a NY state court last month to allow SUNY to stop operating Long Island College Hospital (LICH) at the end of May has paved the way for Brooklyn Health Partners, an organization formed specifically to bid for the hospital, to buy it for $250 million.

The highest bid of $260 million was submitted by runner up Peebles Corporation. Brooklyn Health Partners must put a nonrefundable 10% deposit down ($25 million) by May 4th or risk losing control to Peebles corp.

The hospital has been losing an average of $13 million per month and the new ownership will release state officials of the responsibilities to subsidize it. Brooklyn Partners will turn part of the Cobble Hill property into apartments and commercial space.

Brooklyn Health Partners was chosen by a panel representing community groups as well as the State University of NY. Brooklyn Health Partners is a minority run business and has a lower profile than others who put in a bid to buy the SUNY owned hospital. Peebles Corporation is also minority owned but their proposal to turn the facility into a free standing emergency room rather than keep it as a hospital was met with enough disfavor to give the nod to Brooklyn Health Partners. Peebles would become the next legal choice however if the Brooklyn Partners deal falls through.

The prospect of the deal not consummating is a real one due to the fact Brooklyn Health Partners needs a hospital operating license from the State Health Department. The license process which could take some time may go beyond the agreed date of May 22 for SUNY to discontinue operational control over the hospital. Jim Walden a lawyer for the community groups said he would work diligently to make sure a license was approved.

Merrell G. Schexnydre, chief executive and president of Brooklyn Health Partners is a developer of medical facilities and properties for government agencies. His bio lists him as having once worked for Kaiser Permanente, a major California health organization as a clinical laboratory supervisor.

Some community activists are encouraged by the selection of Brooklyn Health Partners to take over the hospital because fellow community activist Larry English is general counsel for BHP. Mr. English was in attendance at the meeting to award Brooklyn Health the bid; however Mr. Schexnydre did not attend as it was said he was traveling on other business.

Charlene Nimmons who is the president of the resident association for Wyckoff Gardens, a public housing project in Brooklyn, was present during presentations by the bidders. She said she was impressed with the Brooklyn Health Partners proposal because they promised to bring professional management company Quorum Health Resources to manage the hospital. They also indicated they would attempt to hire as many former LICH employees as possible. Ms. Nimmons added that her son was born at LICH some 24 years ago and that her family still used the facility to this day.

Brooklyn Health Partner’s proposal included a plan to create 300 to 400 hospital beds, as well as 1,000 apartments with a third of them to be rented at below market value. The part of the property used for medical purposes will have a 20 year deed restriction on it to prevent the developer from using the property for other endeavors beyond hospital use.

The plan to get up to 300 plus beds will take approximately three years said Brooklyn Health Partners officials; in the interim they will run a hospital with 150 beds, provided they can get their license in time to preserve the deal.

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