Interfaith Hospital struggles to keep out of the ICU
Interfaith Medical Center has filed for Chapter 11 bankruptcy protection, but it still seeks $20 million in New York state “debtor-in-possession” funds to keep it up and running during the reorganization – to keep it out of the ICU, as it were.
The hospital, which has been in and out of financial trouble since the 1980s, announced its filing on Monday in the U.S. Bankruptcy Court for the Eastern District of New York (in Downtown Brooklyn).
Luis Hernandez, president and CEO of Interfaith, blamed the hospital’s financial state on “New York State’s drastic Medicaid reductions in 2010. Because the people we serve are predominantly poor and fully 65 percent are dependent on Medicaid or Medicaid-managed care, we have had a unique deleterious financial challenge of being dependent on the State’s Medicaid reimbursements.”