LONG ISLAND COLLEGE HOSPITAL - Fact Sheet 

Long Island College Hospital was founded in 1858, 150 years ago, as a hospital and medical school.  It introduced the practice of bedside teaching in the U.S., and was the first American hospital to use stethoscopes and anesthesia.

LICH remained a the Medical School until the 1950’s, when it became part of the State University and classroom activities were moved to Downstate Medical Center.  Until now, LICH has maintained its reputation as a premier Brooklyn community hospital with a strong academic/teaching hospital affiliation. 

But this will not continue under current management.

• In 1998, the LICH Board signed an affiliation agreement with Continuum Health Partners (CHP) in an effort to benefit financially from common purchasing and negotiations with insurance companies. As part of this agreement, CHP promised to provide $15 million to LICH for primary care development.  LICH never received these funds.
• In 1999, Donald and Mildred Othmer donated $140 million to LICH, the Othmer Bequest.  CHP says that most has been used for LICH projects, but hasn’t provided reasonable accounting to show it. 
• CHP has also sold off $50 million in LICH real estate – with even more now for sale – without reasonable accounting.
• In 2000-2001, Continuum effectively ended Brooklyn input into its management of LICH by replacing the Board of Directors with its own Manhattan-based Board.
• In 2005, because of the ongoing diversion of funds and resources from LICH to CHP facilities in Manhattan, and the resulting gradual deterioration of LICH, the Medical Staff decided to retain legal counsel.
• In January 2008, the LICH Medical Staff filed official complaints with the NY State Department of Health and the NY State Attorney General, documenting the illegal maneuvers by CHP to take over control of LICH.
• On July 30, CHP announced their plan to close the LICH Obstetrics (Maternity) department. CHP announced they would provide a plan to the State, but have not done so.
• On September 4, the LICH Medical Staff submitted a detailed restructuring plan to the NY State Health Department that will sever all ties to CHP and return LICH to financial health and local Brooklyn control without closing any services.
• On September 22, CHP announced their plan to also close the Pediatrics and Dentistry departments, plus four public school clinics.

Elected officials and community leaders have joined in an effort to stop CHP and its apparent effort to close LICH completely.

We need your support –
Contact your local elected officials and community leaders-
Let them know that LICH must survive!

www.LICHmedicalstaff.org

LICH Summary Briefing Document - October 2008 

Problems and Solutions

The Medical Executive Committee of the Organized Medical Staff of
Long Island College Hospital
Strategic Programs, LLC
Arnold & Porter LLP

October 2008

LICH To Sell Buildings, Cut Bed Capacity, Close Obstetrics
Restructuring Cites Huge LICH Debt, Financial Drain of Malpractice Insurance
‘$30 MILLION IN THE HOLE ANNUALLY’
By Dennis Holt
Brooklyn Daily Eagle
COBBLE HILL -- Providing a background of grim financial numbers, the leadership of Long Island College Hospital announced today that it would completely close its obstetrical services and probably cut in half its bed capacity from 500 to 250.
These significant measures are being taken, said Stanley Brezenoff, CEO of Continuum Partners, to “make sure that there can be another 150 years of life in Long Island College Hospital added to its past.”
In closing obstetrics, Brezenoff noted that this service is a huge money drain for LICH. In 2007, this service accounted for about one third, or $11 million of LICH's losses. Also OB malpractice accounted for $8.8 million of the total $22 million in malpractice insurance costs. But all this accounted for only about 12 percent of its patient base.
Only days after announcing the appointment of Dominick Stanzione as interim president of LICH and “chief restructuring officer,” a press conference was held at LICH to announce these decisions and to suggest that others could be forthcoming.
Continuum has already held discussions with the New York Department of Health on steps it plans to make and will make a formal proposal on it soon. Discussions have also been held with the two main government entities holding most of the hospital’s debt.
One of the many “bottom lines” discussed was the reality that LICH continues to spend about $30 million a year more than it takes in. Last year, its revenues were about $300 million.
Brezenoff put it simply: “We have to cut losses and raise revenues so that we can pay off the debt which is about $170 million. Debt service is about $22 million per year.”
One of the ways to “raise revenues” is to sell off excess property. Specifically, two properties were mentioned -- the Polhemus building and 97 Amity St., both on opposite sides of Amity Street on the corner of Henry Street.
Other properties that might evolve into surplus space were not mentioned, and guesses were said to be premature.
The kind of financial numbers made public Wednesday were unusual, but were released to make understandable the financial problems of the hospital, which Brezenoff said “cannot continue indefinately.”
He noted, for example, that the 2008 budget factored in a debt of $8 million, but after the first six months, that number was running at a $16 million level. The announcement of its preliminary plans was prompted by these growing numbers and by the widespread speculation that Continuum might try to close the hospital.
Confidence was expressed repeatedly that getting the financial houses in order would lead to a "better Long Island College Hospital."
Brezenoff also repeatedly made clear that monies from all real estate transactions would go to retire the debt and all cost savings applied to LICH.
Brezenoff also made clear that Continuum has chosen the path of internal improvements, corrections, and restructuring over declaring bankruptcy, which other hospitals, such as Brooklyn Hospital, have followed.
In June, a group of doctors led by Dr. Arnold Licht, president of the LICH medical staff, held a press conference accusing Continuum of financial mismanagement. They said that their parent company was taking money out of LICH and concentrating on its Manhattan hospitals, such as Beth Israel and St. Luke’s-Roosevelt. They also called for a locally chosen, independent board separate from Continuum’s.

Long Island College Hospital's maternity ward might soon be closing
Brooklyn hospital closing maternity ward
NEW YORK - Long Island College Hospital's maternity ward might soon be closing.
July 31, 2008
The president of Continuum Health Partners, the Brooklyn hospital's parent company, says the building that houses the ward and a second building will be sold to pay off $170 million in debt.
State health officials must first approve the plan.
The company says delivering babies is the hospital's biggest money loser because of low reimbursement rates and high premiums for malpractice insurance.
Critics say closing the ward is shortsighted because obstetrical services are a portal into the hospital.
They accuse hospital's parent company of draining it to support its more prestigious holdings in Manhattan, Beth Israel Medical Center and St. Luke's-Roosevelt Hospital Center.
Hospital officials deny the accusations.