A U.S. Bankruptcy Court judge today granted permission to the operator of Lake Shore Health Care Center to stay open through Jan. 22 by drawing down on money advanced to the Irving hospital by its parent company and an affiliated hospital.
U.S. Bankruptcy Court Chief Judge Carl L. Bucki scheduled another hearing in the case for Jan. 22, and by that point officials hope to have in hand $1 million promised by Gov. Andrew M. Cuomo as short-term financing to keep the hospital open for at least another month.
TLC Health Network in December filed for bankruptcy protection to reorganize its finances, citing more than $9 million in losses for 2013. It had announced in October that it would close Lake Shore hospital this month.
TLC had revealed that parent company Lake Erie Regional Health System of New York, or LERHSNY, had loaned to Lake Shore hospital $3.7 million from Brooks Memorial Hospital last year.
The network, the parent company and state officials are working to keep Lake Shore open long enough for a prospective ownership group led by Anthony Borrello to conduct its due diligence, a process that could take at least one month and would be aided by the state money.