No offers yet for Lake Shore
IRVING – Although, no offers have been made on Lake Shore Health Care Center since it filed for Chapter 11 bankruptcy, that is expected to change.
In an interview in March, TLC interim Chief Executive Officer John Galati said he was optimistic two interested parties may submit offers on the hospital.
He said an outside group had offered consulting services and TLC had asked them to revisit their proposal.
He also said he anticipated the local group headed by businessman Tony Borrello would submit its proposal by the end or March or early April.
“Basically right now they have completed as far as their data gathering from their due diligence. I think they will be taking the month now to determine what their role will be, if at all any. So they are going to look at their level of participation, determine and provide us with at least a proposal. We anticipate that should be done sometime around the month-end,” Galati said in March.
TLC was contacted recently and said no offers had been submitted.
“We have not been presented an offer yet, but are still hopeful to see something soon,” TLC Divisional Director of Business Development Scott Butler said in an email.
According to attorney for the local group, Barry Corvert, the group is still interested.
“They are still doing their due diligence and they are still actively involved in negotiations. We hope that something positive will come out of this (situation),” Corvert said in a recent phone interview.
In another phone interview, Borrello expressed his intention to reach a deal on the hospital sometime this summer.
TLC recently received additional Federal Emergency Management Agency funding which will enable the hospital to remain open to accommodate the sale. According to Congressman Tom Reed the hospital received around $1.2 million.
At the most recent bankruptcy hearing, TLC decided not to borrow the additional funds up to $1 million from the Dormitory Authority of New York state, which previously were expected to allow the hospital to remain open until the beginning of June. TLC still has the option of borrowing the additional funds from DASNY.
The hospital will have its next bankruptcy hearing on April 28.
Lake Shore Hospital submitted a closure plan to the New York State Health Department last year in October and in December filed for Chapter 11 bankruptcy. No closure date has been set and hospital officials have expressed a desire to keep the facility open for a seamless sale. An offer to purchase the hospital would need to be considered by the TLC board, Lake Erie Regional Health System Board, the U.S. Bankruptcy Court in Buffalo and the state Health Department.