Funding may no longer be available when TLC needs it
The good news is Federal Emergency Management Agency funding will hold Lake Shore Hospital over until mid-June; the bad news is Dormitory Authority of New York State funding may no longer be available for the facility at that time.
According to U.S. Bankruptcy Court Judge Carl L. Bucki’s Law Clerk Adolph Iannaccone, at TLC’s hearing this week in Buffalo it decided not to access the remainder of the DASNY funding.
TLC previously borrowed half of the $1 million available from DASNY. At its last hearing at the end of March, TLC had received FEMA funding and decided to hold off on borrowing the rest of the available funds from DASNY.
However, the money may not be there when the hospital will need it in June.
“The DASNY money may not be there in mid-June if the hospital is just treading water at that point,” Iannaccone explained.
Iannaccone said the hospital is still looking for a buyer.
In order to see if circumstances have changed before June the next hearing was scheduled for May 12.
At that time, the court will also consider extending the broker contract with The Hill Group.
Judge Bucki also considered a motion for TLC’s and the committee’s lawyers to be paid monthly.
“Usually attorneys are paid every four months,” Iannaccone explained. “Because of the precarious situation the hospital is in, the attorneys asked to be paid every month.”
Iannaccone said the judge put this motion on hold until he could see their fee applications.
The motion to borrow from DASNY and retain its broker will be considered on May 12. The lawyer’s proposition is considered on reserve until Judge Bucki is ready to make a decision.
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. No offer to purchase the hospital has been accepted, or considered by the TLC board, Lake Erie Regional Health System Board or the bankruptcy court.