Lake Shore Health Care Center will receive as much as $6.6 million in aid that provides more time for the hospital in Irving to emerge from bankruptcy protection or find a buyer.
TLC Health Network, which operates Lake Shore hospital, in the next month or so will receive an initial $2 million as a down payment from a temporary state fund, the Interim Access Assurance Fund, that is channeling $250 million in federal Medicaid waiver money to financially distressed, safety-net hospitals in New York, John Galati, the network’s interim CEO, said Tuesday.
TLC Health Network learned previously of its approval for the award but got confirmation on Monday that it will receive as much as $6.6 million between now and March. The hospital can use the money for operating expenses, such as staff salaries, but not to retire outstanding debt, Galati said.
The future of Lake Shore hospital, which was targeted for closure last fall and which entered bankruptcy protection in December, remains uncertain, however, though Galati said TLC Health officials want to get the facility out of bankruptcy.
The judge overseeing the bankruptcy case set a deadline of Friday for qualified bids for an auction of the hospital’s assets, with further hearings in the case scheduled for next week. Galati said offers could be made for the hospital as a whole, or for specific product lines.