BREAKING NEWS: Peninsula Hospital Shut Down

Source: "All Employees Will Be Officially Terminated March 30"

Far Rockaway, NY - A an employee of Peninsula Hospital Center, which has been plagued with fiscal problems and was undergoing a "reconstruction" to keep the facility open, has informed From The G-Man that the beleaguered hospital was shut down today and that security has been posted at the front and rear entrances.

The source also stated that a notice was posted at the front entrance instructing employees to enter through the back of the hospital to find out the details surrounding the abrupt closure.

Employees protested the closing by conducting a sit-in on the front lawn of the hospital, while others spoke to various broadcast media outlets.

"I'm in complete shock. This came completely out of left field, and I just don't understand how they can do this to people," said the employee, who chose not to have their name disclosed. 

From The G-Man was also informed that a special meeting was held and that a decision had been made to officially terminate all employees on March 30.

"I feel confident in saying that unless there is a last-minute miracle, Peninsula Hospital will no longer exist as of March 30," said the source.  

Attempts were made to contact Liz Sulik, Director, External Affairs & Development at Peninsula Hospital Center, to confirm the pending terminations and obtain more detailed information on the situation, but an assistant noted the representative was unavailable for comment.    

"As far as I know, Sulik was probably let go already, which is why you were told she's unavailable. I suspect her name was on the list of employees that were laid off a couple of weeks ago," the source stated. 

From The G-Man began covering this story back in 2011 after various inside sources contacted this site and revealed details regarding the hospital's dire financial state.

The following articles offer a timeline of events leading up to the facility's closure.

http://fromthegman.blogspot.com/2011/07/peninsula-hospital-center-targeted-for.html

http://fromthegman.blogspot.com/2011/08/medisys-pulls-out-of-peninsula-hospital.html

http://fromthegman.blogspot.com/2011/08/peninsula-hospital-center-resumes-er.html

http://fromthegman.blogspot.com/2011/09/peninsula-hospital-on-road-to-recovery.html 

http://fromthegman.blogspot.com/2012/03/peninsula-hospital-center-consents-to.html

Peninsula Hospital Center Consents to Appointment of Trustee

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.

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