NEW YORK CITY-Avoiding the same fate as St. Vincent’s Hospitaland North General Hospital earlier this year, Long Island CollegeHospital in Brooklyn will be acquired by SUNY Downstate MedicalCenter. The state is providing $40 million for the acquisition, inwhich LICH will become a second campus of University Hospital ofBrooklyn.

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The funding is being provided via a HEAL NY (Health CareEfficiency and Affordability Law for New Yorkers) grant from theNew York State Department of Health and the Dormitory Authority ofthe State of New York. According to a release, the $40-million HEALNY grant and a $22-million HEAL NY grant awarded in October 2009 toLICH will assist SUNY Downstate in retiring LICH debt and in payingcosts associated with integrating clinical and financial operationsbetween SUNY Downstate and Continuum Health Partners, which managedLICH.

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John C. LaRosa, M.D., president of SUNY Downstate, says in astatement, “I want to emphasize that the agreement with Continuumrepresents a significant step forward, but there are many morereview and approval steps that must be completed before anagreement can be finalized. This agreement will also strengthenDownstate’s education and training mission and preserve Downstate’sstanding as the hub of medical education in Brooklyn. Equallyimportant, critically needed healthcare services in Brooklyn willbe safeguarded.”

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LICH has been faced with closing since at least 2008, whenContinuum announced that the hospital was burdened by $170 millionin capital debt and proposed to shut down its maternity andpediatric operations, according to the New York Times. TheState Health Department denied Continuum’s 2008 plan to closematernity and pediatric operations, which led to the search for apartner for LICH.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.