Parkway Hospital, Forest Hills, N.Y., lost its operating license and must close after legal action failed to delay a planned closure under New Yorks mandated healthcare restructuring. In the past week, courts rejected Parkway officials bid to keep the privately owned hospital open, said Frederick Stewart, the hospitals vice president of marketing and new business development. Parkway faced closure under a statewide initiative to eliminate healthcare waste and overcapacity mandated by a panel popularly known as the Berger Commission.
Hospital officials have begun transferring patients, said Claudia Hutton, a spokeswoman for the New York Department of Health.
Stewart said Parkways owners may acquire a second hospital to create a health system or convert the 251-bed hospital into an outpatient medical pavilion.
State funds to offset closure costs under Berger have been a sore point between Parkway and the state. Hutton said Parkway can no longer seek a share of $550 million in state funds to offset hospital closure costs. Funds were limited to hospitals that adhered to the Berger Commission plan for reorganization and have already been awarded. Stewart said state officials told Parkway that for-profit hospitals were not eligible to receive aid, an assertion Hutton denied. -- by Melanie Evans