Our Lady of Mercy Hospital

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Just an FYI, I hope that none of the brothers who work for their EMS are negatively affected! Anyone with more news?

Mercy hosp in bankruptcy

Looking to sell assets to Montefiore and stay open

BY BOB KAPPSTATTER

DAILY NEWS BRONX BUREAU CHIEF

After years of financial struggle, Our Lady of Mercy Medical Center in the north Bronx filed for bankruptcy court protection yesterday.

At the same time, it asked for federal bankruptcy court permission to sell most of its assets to Montefiore Medical Center, which has entered into an asset purchase agreement with Mercy.

The sale, Mercy said in a statement, is subject to higher or better offers and Bankruptcy Court approval.

The 369-bed nonprofit medical center's Chapter 11 petition listed assets of $91.2 million and liabilities of $151.5 million as of December 2005.

The voluntary petition for reorganization by the Norwood hospital was filed in U.S. Bankruptcy Court for the Southern District in Manhattan.

"While we have attempted to reverse OLM's financial losses over the last few years, it has become clear that the best path forward is to seek bankruptcy protection and enter into an agreement with a financially strong medical center," said Richard Celiberti, president and chief executive officer.

"During the bankruptcy and bidding process, we expect to be fully operational as a medical center, and day-to-day patient care will not be affected," said Celiberti. "We are looking ahead to a successful resolution that enables Our Lady of Mercy to continue its 110-year tradition of delivering high-quality medical services to the people of the Bronx and greater New York."

To fund its continuing operations during the restructuring, including payments to employees, vendors and suppliers, Mercy said, it has secured a commitment for financing. It said it expects to obtain the necessary regulatory approvals and consummate a transaction with Montefiore or another bidder within five to six months.

Last year, Mercy and Montefiore entered into an agreement under which the hospitals would share certain operations, with Mercy leaving the financially struggling Catholic Health Care System.

The bankruptcy filing comes a day after Dr. Spencer (Spike) Foreman announced that he is stepping down as Montefiore's president.

Founded in 1887 by the Misericorde Sisters of Montreal, Mercy is a teaching community hospital with an acute-care medical campus, medical villages and ambulatory-care centers. It treats about 120,000 patients annually.

Originally published on March 9, 2007