Fortis has agreed to buy LICH in Brooklyn for $240 million plus some transition costs and $5 million to create a community foundation.

COBBLE HILL, NY—The State University of New York Board of Trustees Tuesday unanimously endorsed the agreement in principle with Fortis Property Group for the purchase of the former Long Island College Hospital complex in this Brooklyn neighborhood, authorizing the chancellor and SUNY to finalize the deal.

The total sale price is $240 million plus additional funds to cover the full operating costs for SUNY to run the emergency department during the transition period and $5 million for a community foundation to address the ongoing healthcare needs of the community. The sale will be secured by a $24 million deposit, or 10% of the purchase price at contract.

Fortis has committed to construct a new state-of-the-art primary medical facility that will be subject to a 20-year deed restriction for medical use.

“The Board’s unanimous support of this agreement shows that we have achieved the right balance of health care for the community while beginning to ease the longstanding and damaging financial burden on the State University of New York,” says chairman H. Carl McCall. “The Board is eager for SUNY to return its focus and resources on educating our students in Brooklyn and across the State of New York. We remain appreciative of Judge Johnny Lee Baynes’ leadership throughout this process as we continue to negotiate a final contract for consideration by this Board.”

Under the agreement in principle, there will be a seamless transition between SUNY and NYU Langone Medical Center to ensure continuous emergency medical services at LICH for the residents of Brooklyn as well as a guarantee to expand and diversify medical services offered to the Brooklyn community.

NYU Langone Medical Center’s Certificate of Need application has been approved by the Department of Health, satisfying a major step in the regulatory process and expediting its ability to operate the emergency department under its own license. Additional certificates of need for an ambulatory surgery center and a Federally Qualified Health Center have been submitted.

To ensure that the future health care services are responsive to community needs, Fortis and NYU will establish a LICH transformation advisory panel, a clinical advisory panel and a community ombudsperson, and reserve additional space for the expansion of health care services and community space as recommended by the panels.