Lake Shore Health Care Centers finances are expected to allow the hospital to stay open another two weeks, according to an official at the U.S. Bankruptcy Court in Buffalo.
U.S. Bankruptcy Court Chief Judge Carl L. Bucki presided over TLC Health Network's hearing Monday, but no action was taken for a loan from the Dormitory Authority of New York state.
In a phone interview with Judge Bucki's Law Clerk Adolph Iannaccone, he explained TLC, Brooks Memorial Hospital, University of Pittsburgh Medical Center and the Dormitory Authority had "worked out terms" to allow Lake Shore to stay open without immediately having to take out a loan from the Dormitory Authority.
The Lake Shore Health Care Center’s finances are expected to allow the hospital to remain open for another two weeks.
He explained, Judge Bucki allowed an extension of receivables to be used for operations until the Feb. 19 hearing. A similar action was taken at a previous hearing on Jan. 13.
"This is allowing Lake Shore to spend the receivables that technically belong to Brooks as cash collateral on a lien. This is permission to continue to use the receivables and the lien will apply to the next set of receivables," he said.
He also said TLC can borrow $500,000 from the Dormitory Authority before the next hearing if needed through an interim stipulated order.
Iannaccone said Judge Bucki asked if the hospital has enough funds to continue operating until the Feb. 19 hearing. He said TLC responded positively, saying a reduction in services along with the use of receivables is expected to get the hospital through, but it also has the option of the interim stipulated agreement.
Lake Shore Hospital submitted a closure plan to the New York State Health Department in October and later 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. Emergency funding from the Dormitory Authority was secured by State Senator Catharine Young. The next hearing will be held Feb. 19 at 1 p.m.