Thursday, January 24, 2013

Brooklyn's LICH On the Verge of Closing - UPDATE: Endowment Drained?

Long Island College Hospital -- LICH -- in Cobble Hill, Brooklyn faces closure -- just two years after SUNY Downstate took it over, the Times, the News, the Post and the Brooklyn Eagle are reporting.

Talk of closure comes a week after state Comptroller Tom DiNapoli issued a "scathing" audit saying that SUNY Downstate was on the verge of bankruptcy. The report said SUNY Downstate's decision to absorb LICH a colossal financial mistake.

As far back as 2008, doctors accused the hospital’s parent body -- which was at that time Continuum Health Partners -- of financial mismanagement and leaving the hospital in a precarious position.


According to the Brooklyn Eagle:
"While the audit said SUNY Downstate assumed both assets and “substantial” liabilities from LICH, Downstate President Williams asserted that LICH’s assets were higher than previously estimated – from "$280 million to $550 million," reports Crain’s New York.

Further, SUNY won’t be responsible for about $140 million worth of potential LICH medical malpractice claims. A trust set up from LICH endowment funds will cover those payments.

Also, according to DiNapoli’s report, $32.7 million was transferred from LICH’s accounts to SUNY's “Health Science Center at Brooklyn Foundation, Inc.” a not-for-profit corporation. (We notice the management fees for this foundation in 2011 alone are almost $6 million.)

This brings us back to 2008, when it was Continuum who was draining LICH of resources. Dr. Arnold Licht president of LICH medical staff, charged at that time: “Continuum has refused to account for money it has ‘borrowed’ from LICH’s endowment, for millions from the sale of LICH’s property, and even for bills it has imposed on LICH.”

- Unexpected: Head of Brooklyn's LICH Stepping Down
- Donald and Mildred: We're Sorry About Losing All Your Money, and the Hospital, Too
Gov. Paterson Announced LICH /SUNY Deal in Brooklyn Today 
- Insurance Trouble at Brooklyn's LICH 
- Petition to Save LICH
- Sucking Long Island Collage Hospital Dry?
- Long Island College Hospital In Big Trouble

Go to McBrooklyn's HOME PAGE.


Anonymous said...

What makes no sense is that they will close LICH which is the only hospital serving its area but leave Downstate in Flatbush which is right next to Kings County and Brooklyn Jewish. Downstate loses 8million/month, LICH 3 million. Downstate's location will not attract the affluent, LICH could. What is the sense in this? The sense is Downstate is killing LICH to cover itself. It's a losing strategy. Make LICH the profitable hospital for the Medical School and close the redundant and bloated SUNY-Downstate Campus

Anonymous said...

Continuum sucked LICH dry. When people went to LICH they had to send their payments to Beth Israel. Now looks like SUNY is doing the same.

Anonymous said...

One of the major causes of SUNY Downstate's financial ruin, according to the State auditing was the acquisition of LICH in May 2011. Under the purchase agreement, SUNY Downstate took on $170 million of LICH's liabilities, which the hospital has increasingly been unable to manage. Additionally LICH has financial issues for the last 17 year with a plethora of hanging law suits unresolved. SUNY Downstate was in the black until purchasing LICH which became their downfall. A good portion of
SUNY-Downstate funds was funneled into LICH with no end in sight to make it a feasible operation.

Anonymous said...

The hanging law suits were funded by plundering LICH's endowment fund, not SUNY.

Anonymous said...

According to DiNapoli's report, SUNY was losing money before it acquired LICH in 2011:
"From 2007-2011, Downstate consistently lost money."

Anonymous said...

SUNY Downstate had no business taking on LICH's financial concerns when they have concerns of their own. Downstate/LICH merger was a mistake....a disaster in the making.