Levine Resigns As PHC CEO
A s part of a plan to put the ailing Peninsula Hospital Center on a solid financial footing, the new owners of the facility have filed for bankruptcy on behalf of both the hospital and the adjacent nursing home.
And, on the day that the bankruptcy petition was filed in federal court, longtime hospital Chief Executive Officer Robert Levine, who has run the hospital since 1996, resigned his position and left the hospital for good, sources say.
The hospital’s new CEO, Todd Miller, was introduced at a Community Board 14 meeting on Tuesday night.
“Everyone has worked tirelessly so that the hospital will continue to be a vibrant part of the community,” Miller told board members. “We expect to reinvigorate Peninsula with programs and services to make your access [to health care] better.”
According to Crain’s New York, a business newspaper, PHC and its affiliate, Peninsula General Nursing Home Corp.— which does business as Peninsula Center for Extended Care & Rehabilitation — filed for Chapter 11 bankruptcy protection on Monday, September 19.
They listed total assets of $34.6 million and $70.8 million in liabilities, as of May 31.
The Peninsula board recently struck a deal for the hospital and nursing home to be managed by an affiliate of Revival Home Health Care, a for-profit, privately owned health care group that reportedly provided an $8 million line of credit for the hospital. The bankruptcy was a condition of the transaction. The filing indicates that during the bankruptcy, the hospital and nursing home will not change their current nonprofit status.
Todd Miller, Peninsula’s chief restructuring officer as of September 1, said in his affidavit that Peninsula would break even or become profitable “through a change in culture, marketing strategies and by feeding off synergies with Revival’s related businesses.” He added that the hospital and nursing home — “with a new management team and fresh capital” — can boost revenue by attracting more patients. According to published reports, about 80 percent of the Far Rockaway population seeks health care services off the peninsula, and primarily uses the hospital only for emergency services.
According to Crain’s, Miller said new management would try to tempt residents with new offerings of cardiac services, more surgery capabilities and improved oncology services. He said Revival management believes “neither the hospital nor the nursing home was aggressively managed in recent years and that implementation of new procedures will result in significant savings, as well as increased revenues.”
To boost revenue, the hospital is recruiting a new case manager who will tackle its higher-than-average length of stay. Miller also said the hospital was building new relationships with home care agencies and nursing homes to more quickly obtain placement for its patients.
The Revival team also is targeting purchasing and maintenance procedures, which it labeled “inefficient.” Miller said, “Properly managing these procedures and vendor relationships will generate significant savings.”
Peninsula’s payroll obligations, excluding benefits, for the 30 days following the filing are $3.6 million, with $2.8 million in payroll for the hospital, and the rest for the nursing home. The hospital employs 134 doctors, four administrators and 551 other workers. The nursing home employs two doctors, two administrators, 36 registered nurses and 207 other workers.
The health care union 1199 SEIU’s benefit funds are the largest secured creditors. The union benefit funds are owed $8.2 million by the hospital, and another $3.3 million by Peninsula’s nursing home.
Additional reporting by Miriam Rosenberg.