Montefiore Medical Center, New York, is buying two more hospitals at fire-sale prices, just months after acquiring bankrupt New York Westchester Square Medical Center. Westchester, N.Y.-based Sound Shore Health System will file for Chapter 11 bankruptcy protection.
Montefiore announced it will purchase Sound Shore's buildings and other assets, assume certain liabilities and provide funding while Sound Shore is in bankruptcy proceedings. Montefiore plans to keep open and operate Sound Shore's two hospitals in Mount Vernon and New Rochelle, as well as its nursing home.
The proposed transaction needs bankruptcy court and New York state Department of Health approvals. Sound Shore and Montefiore did not disclose financial details of the transaction, which they said could be completed by the end of the year.
In a statement, Montefiore CEO Dr. Steven Safyer said his hospital "looks forward to building on our existing clinical presence in lower Westchester and working with the dedicated doctors, nurses and staff of Sound Shore and Mount Vernon hospitals and the Schaffer Extended Care Center who have served their patients well over many years.