SUNY Downstate calls off deal with Long Island College Hospital bidder
BROOKLYN - Another potential takeover deal for Long Island College Hospital has fallen through.
SUNY Downstate announced that it cut off talks with their second choice bidder, the Peebles Corp., which was reportedly planning on purchasing the cash-strapped hospital for $260 million.
According to a SUNY spokesperson, negotiations were called off because Peebles dramatically changed its original proposal. It says there would have been long delays before health care could be provided and taxpayers would be held partially responsible for environmental cleanup costs.
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However, a spokesperson for Peebles reportedly told the Daily News that SUNY mischaracterized the reasons that the deal fell apart and that it acted in bad faith.
SUNY officials said in a statement that they are now working with Fortis Property Group as part of its ongoing effort to finalize a takeover that will provide continued health care services for the Cobble Hill community while also protecting the financial interests of state taxpayers and its students.
Most of LICH shut down last week, leaving only the emergency department in operation.