2013-05-30 – Montefiore Medical Center to Acquire Bankrupt Sound Shore Health System
Sound Shore Health System (“SSHS”) announced today it has entered into an Asset Purchase Agreement with Montefiore Health System (“Montefiore”) for Montefiore to acquire its assets (and assume certain liabilities). The transaction, which is expected to close by the end of this year, subject to Bankruptcy Court and regulatory approval, will enable Montefiore to continue, and enhance, the provision of care at Sound Shore and Mount Vernon Hospitals as well as at the Schaffer Extended Care Center.
SSHS will provide uninterrupted healthcare throughout the sale period and patient treatment and care will not be impacted. SSHS’s nationally-recognized doctors, nurses and staff will continue serving patients without impact on day-to-day operations, and SSHS will continue to operate as a not-for-profit hospital system, providing treatment to all members of the community regardless of their ability to pay.
SSHS has filed voluntary petitions in the U.S. Bankruptcy Court for the Southern District of New York (White Plains) under Chapter 11 of the U.S. Bankruptcy Code. To ensure the continuity of operations, protect the value of its assets and provide ongoing access to patient care and jobs, SSHS has elected to sell its assets to Montefiore under Section 363 of the Bankruptcy Code. SSHS, with Montefiore’s assistance, has also secured commitments for debtor-in-possession financing that will ensure sufficient working capital and enable it to continue operating business-as-usual throughout the process.
John Spicer , President and CEO of SSHS, commented, “For decades, Sound Shore Health System’s physicians, staff and volunteers have been steadfast in their commitment to providing primary, acute, emergency and long-term health care to patients regardless of their ability to pay. Our community-based teaching hospitals have earned prestigious recognitions as Centers of Excellence in multiple areas, including Bariatric Surgery and 1st Trimester Antepartum Screening, as well as the Joint Commission’s Gold Seal of Approval® for both hip and knee replacements, a true testament to the level of care we provide to individuals living and working in southern Westchester.”
Mr. Spicer continued, “This is the right next step to deliver on our commitment to provide high quality, accessible and affordable healthcare. Our mission is strong and our dedication to patient care is unchanged. We are fortunate to have Montefiore as a partner because of their clinical excellence, commitment to community and ability to provide the best care at Sound Shore and Mount Vernon hospitals over the long run.”
“At Montefiore, we believe health care should be easy to access, local and tailored to the needs of the communities,” said Steven M. Safyer , M.D., president and CEO of Montefiore Medical Center. “New Rochelle and Mount Vernon deserve exceptional care close to home. Montefiore looks forward to building on its existing clinical presence in lower Westchester and working with the dedicated doctors, nurses and staff of Sound Shore and Mount Vernon hospitals and the Schaffer Extended Care Center, who have served their patients well over many years.”