Lake Shore hospital may reorganize under Chapter 11
The effort to save Lake Shore Health Care Center in Irving continues. One current plan involves letting the hospital first go bankrupt. Shortly after its closing was announced in October, businessman Tony Borello submitted a purchase plan. Borello's attorney, Barry Covert, now says the hospital may go bankrupt and file for Chapter 11 reorganization.
Covert says that would keep the hospital open and give Borello time to review the hospital's books before buying it and taking it out of bankruptcy.
"It's a very positive process that we're going to be engaging in and we want to make sure that it's done right. Hopefully, we're able to put together the right plan to save the hospital," Covert tells WBFO News.
The hospital announced its intention to close on January 31, 2014 saying it was expecting to lose $7 million this year.
Board chairman Christopher Lanski, at the time, said the system was faced with "serious financial challenges" that date back to the 2008 merger of Brooks Memorial Hospital and the TLC Health Network.
Lake Shore Hospital employs around 400 people. If it is allowed to close, the nearest hospital for area residents would be 20 minutes away in Dunkirk.