BREAKING NEWS

BREAKING NEWS

$11M bid is beginning of negotiation

The recent offer by a local businessman to purchase the Lake Shore Health Care Center was not to exceed $11 million, according to documents obtained by the OBSERVER Thursday afternoon.

In the Oct. 24 letter, which was addressed to Gary Rhodes, chief executive officer of the Lake Erie Regional Health System of New York, interest in the facility and land is expressed. The purchase price shall not exceed $11 million (for the potential transaction), in the document signed by Anthony Borrello.

The letter also requested a due diligence period of 150 days with the right to access the hospital property as well as make inquiries.

Earlier reports regarding the purchase request said the offer would be up to $15 million.

On Tuesday night, the hospital board said it did not decide on the offer and on Wednesday, its communication department stated the offer was “insufficient.”

Borrello’s Attorney Barry Corvert of Lipsitz Green explained $11 million was the first bid but negotiations are ongoing.

“You never expect the first bid to be accepted, that’s what’s happening,” he said in a phone interview Thursday.

Lake Shore Health Care Center is slated to close on Jan. 31. However, hospital officials said they are continuing to move forward with plans for a sale.

The facility is expected to lose $7 million this year.