N.Y. hospital can't pay its workers

Sheehan Health Network, Buffalo, N.Y., cannot pay its employees, the 40-bed hospital told the New York State Department of Health. Jeffrey Hammond, a spokesman for the health department, said the agency “is aware of the situation and we are working with the facility to ensure patients are safe and receiving proper care.” State health officials will continue to monitor the hospital, he said.

Mary Kargbo, Sheehan Health’s president and CEO, said in a written statement the hospital faced a “financial burden” from reduced reimbursement and fewer patients.

“However, management is taking important steps to retool Sheehan and improve the financial standing for the hospital,” she said. “Sheehan management is committed to providing quality medical care to our patients and the Buffalo community.”

The hospital emerged from Chapter 11 bankruptcy in 2006. In 2009, the most recent year for which financial information is publicly available, Sheehan reported income of $2.3 million on total revenue of roughly $13 million, according to its tax records.

“As an urban hospital, Sheehan has been in the midst of continual change due to shifting populations and other factors,” Kargbo said in a follow-up statement. “However, one thing that remains the same is management’s commitment to providing quality medical care to our patients and the Buffalo community.”

Jennifer Parker, a spokeswoman for the hospital, said management is confident the financial situation can be resolved.