LBMC Files for Chapter 11 Bankruptcy

Long Beach Medical Center files for bankruptcy, to be taken over by South Nassau Communities Hospital.

(Photo: Joseph Kellard)
(Photo: Joseph Kellard)

As speculated, Long Beach Medical Center filed for bankruptcy protection Wednesday.

The hospital, severely damaged by Hurricane Sandy, filed for Chapter 11 bankruptcy protection after months of suspicion from Long Beach officials and those involved at the facility.

Ray Ellmer, of the hospital's Board of Trustees, said in December the hospital would "definitely" declare bankruptcy to "get rid of some debt." A final date had not yet been decided at that time.

The 162-bed hospital shuttered in October 2012 after damage from Hurricane Sandy as 10 feet of water flooded its basement. The flooding wreaked havoc on the facility, causing $56 million in damages.

In the year before Sandy struck, LMBC brought in $55 million in revenue while racking up $59 million in expenses, according to The Real Deal. According to the report:

South Nassau Communities Hospital will acquire all the real estate and operating assets of the hospital and its affiliated nursing home — the Komanoff Center — at their appraised value, Crain’s reported. Long Beach Medical, which reported $21 million in assets and $48 million in liabilities as of Dec. 31, also borrowed $1.5 million from South Nassau a few weeks before the bankruptcy filing.

FEMA will also continue funding facility restoration, said the report.

South Nassau reportedly "plans to open a freestanding, 24-hour emergency department that would receive 911 calls later this year in Long Beach," on top of an urgent care center that would open as early as May, said Newsday.

The need for urgent and emergency care is at the forefront of city leaders' minds.

"We recognize the immediate need for a functioning hospital and emergency room, and we will not stop fighting until we have what we need," City Council Vice President Fran Adelson told Newsday.

Bob West February 21, 2014 at 08:54 PM
You obviously know the regulations about hospital inpatient reimbursement. Unfortunately, my family and I have spent much time in ERs the past few years. The view is very different from inside the ER. First, in reality people are kept in beds in hallways without ever being "admitted" to the ER or the hospital. About 2 years ago my old father got dizzy and took a bad fall, hit his head. Went to Franklin ER, immediately sent for CT of the brain. Stayed in hallway 36 hours, supposedly waiting for Neurologist. On next day, was sent home by ER Doc without ever seeing Neurologist or being admitted because he was then stable. Never got admitted, not subject to regs you correctly cite. Regardless of the laws, this is what's happening in ERs. (And my dad has excellent insurance.) Any head injury- good insurance-> CT scan, Neuro workup if admitted. Bad/no insurance-> go home, have somebody wake you every 2 hours to make sure you're ok, if dizzy or nauseous, call your M.D. or come back. Either is a legit treatment for banging your head. I have bad insurance. My last admission to the hospital was for Pneumonia, admitted via ER by Infectious Disease/Int Med MD. Had 2 CT scans, saw I.D. Doctor first and last day of hospitalization, otherwise Interns. Got 5 days of IV antibiotics. Never seen by a Pulmonologist or a Respiratory Therapist. Inpatient, M.D. specialists will not bill you- they just won't see you. Regs require patients admitted to the ER are entitled to "full hospital services" 24 hours after admission- phone, food, etc. That's obviously ignored. Hospitals don't always disclose things 100% accurately or fully. Since my Long Beach Drs were wiped out by Sandy with everything else I had, I began going to SNCH Family Medicine Clinic before I could come home. They advise patients to call ahead to see Resident on call before seeing ER Dr, because you may be billed by ER Dr. True or not, South Nassau is very good at prioritizing care according ability to pay. By inheriting all of Long Beach's Orthopedics problems, SNCH gains that profitable group for that service, which is a virtual monopoly for benefactors Orlin-Cohen MDs. Unfortunately, quoting NYS Health codes is like quoting Long Beach Building codes. Here's a scan of the back of an appointment card from South Nassau outpatient clinic: http://imgur.com/WVtqUXA
Leigh Alexander February 24, 2014 at 05:14 PM
@Bob West...I, as well, have spent numerous visits, hours, etc. in ERs, and inpatient at hospitals over the past year due before being diagnosed with a rare autoimmune disease. It is my find that SNCH was not to my liking so I travel to Winthrop where I've had a much better experience in the ER and inpatient. In November, I spent 23 days inpatient at Winthrop with 2 CTs, 3 MRIs (under sedation because I can't lay flat for that long) 2 EMGs, a Lumbar Puncture (under anesthesia), a biopsy (under anesthesia) of lesions that they found on my spine, numerous blood tests, meds, IV infusions of steroids and other meds, and genetic testing, and probably many other things that I can't remember... I saw several specialists (about 8 different ones), and when they tried to bill me above and beyond, I called their billing department and told them I know the law and they removed the bill.
Bob West February 24, 2014 at 08:07 PM
Thank you, Leigh, for that valuable information. Sorry that I assumed you were talking "from the outside looking in" when the opposite was true. Honestly, in past hospitalizations, I've usually been covered by "house staff" and assumed I couldn't be seen by specialists because my insurance wouldn't cover it. Weird how we're on opposite ends of the insurance spectrum but still get told half-truths. Wouldn't it be interesting if they put your info in those gigantic packets of papers they give you when you go into a hospital. Believe it or not, I'm going in to Winthrop for surgery next week. So far, I'm also much more impressed with them than South Nassau. A friend actually suggested recently how good it would be if Winthrop took over Long Beach rather than SNCH. Thanks again for the very important information.


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