Remedial Actions Taken to Re-Open Hospital Laboratory Within Two Weeks
Far Rockaway, NY - Today, Peninsula Hospital announced that it has consented, along with the official committee of unsecured creditors and its lender, Revival Funding, LLC, to the appointment of an Operating Trustee in the Bankruptcy case in order to assist Peninsula towards a reopening of the hospital following the NYSDOH's order to suspend operations on February 23, 2012 due to deficiencies in its laboratory.
At this time Peninsula is working with the union, SEIU 1199, and is instituting short term layoffs to conserve cash while the hospital is on diversion.
A source who is employed at Peninsula Hospital contacted From The G-Man on the morning of March 2 and indicated that a total of 238 employees are expected to be laid off between March 2 and March 5. The source also noted that they personally read a listing of all employees expected to be laid off.
"Unfortunately, my name is on the list. I got to see the list of names, so the blow was somewhat cushioned. Imagine what the reaction will be for employees that have no idea their name is on the list," said the employee, who spoke on the condition of anonymity.
"I feel blindsided, and I know many other employees will also. SEIU 1199 has been missing in action on this, and I don't understand it. The union leadership has said nothing to its members during this entire process, and I suspect a lot of 1199 members at Peninsula are going to want answers in the days and weeks to come," the source concluded.
Management of Peninsula has been working closely with NYSDOH to rectify the laboratory deficiencies and reopen the hospital as soon as possible and has been working around the clock with experts in the field to essentially build a new lab from the ground up.
At the time of the DOH orders, Peninsula had successfully negotiated with its creditors, and all parties in interest have agreed to a term sheet which would allow Peninsula to exit bankruptcy in the spring. Currently, Peninsula’s counsel still anticipates an exit from bankruptcy in mid-May.
"I feel blindsided, and I know many other employees will also. SEIU 1199 has been missing in action on this, and I don't understand it. The union leadership has said nothing to its members during this entire process, and I suspect a lot of 1199 members at Peninsula are going to want answers in the days and weeks to come," the source concluded.
Management of Peninsula has been working closely with NYSDOH to rectify the laboratory deficiencies and reopen the hospital as soon as possible and has been working around the clock with experts in the field to essentially build a new lab from the ground up.
At the time of the DOH orders, Peninsula had successfully negotiated with its creditors, and all parties in interest have agreed to a term sheet which would allow Peninsula to exit bankruptcy in the spring. Currently, Peninsula’s counsel still anticipates an exit from bankruptcy in mid-May.
Laboratory Status
According to Peninsula Hospital’s CEO Todd Miller, “At the end of December 2011, the hospital began the process of addressing the necessary lab improvements through a remediation action plan, including revising and updating policies and procedures, ordering upgrades to equipment and maintenance routines and upgrades to staffing. It’s a big job but we are working around the clock to get all of the necessary changes completed.”
“All elements in the Department of Health’s Survey of the Lab are expected to be addressed by the hospital by week’s end. Once these initiatives are complete, the hospital is hopeful that the Department of Health will quickly lift the diversion of the hospital through a satisfactory review of our corrective action plan.”
More information on the hospital shutdown is available in the following New York Daily News article: State Shutdown of Peninsula Hospital
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