Long Beach (N.Y.) Medical Center filed for Chapter 11 bankruptcy protection on Wednesday with a package deal to sell its assets to South Nassau Communities Hospital for $21 million. Battered by Superstorm Sandy, the hospital had invested millions of dollars on repairs but never reopened as a full-service hospital since it was damaged in October 2012.
The hospital reported $21 million in assets and liabilities of $48 million as of Dec. 31. Revenue for the 12 months prior to Sandy were $55 million, with expenses of $59 million. Its operating loss was $4.8 million during the period—a testimony to the hospital's red ink before the Atlantic Ocean flooded poured in.
A day prior to the filing, Long Beach signed a purchase agreement with South Nassau to acquire all the real estate and operating assets of both the hospital and its affiliated nursing home, the 200-bed Komanoff Center, at their appraised value. The bankrupt hospital also borrowed $1.5 million from South Nassau because of a cash crunch in the weeks before it filed for Chapter 11.