NEW ROCHELLE, NY -- 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.”
UPDATE: Montefiore Medical Center has issued their own statement:
MONTEFIORE REACHES AGREEMENT TO ACQUIRE ASSETS OF SOUND SHORE HEALTH SYSTEM
Purchase Ensures Ongoing Community-Based Care, Economic Stability in Westchester
NEW ROCHELLE, NY -- Montefiore Medical Center said today that it has filed a petition in federal bankruptcy court to purchase the assets of Westchester-based Sound Shore Health System, which earlier today filed for Chapter 11 bankruptcy protection. Terms of the agreement were not disclosed.
Should the court approve the agreement, Montefiore would purchase Sound Shore buildings and other assets and operate its two hospital facilities – one in Mount Vernon and the other in New Rochelle – and its skilled nursing facility. The transaction, which is subject to regulatory approval, could be completed by the end of the year.
“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. “Residents and neighbors of New Rochelle and Mount Vernon deserve exceptional care close to home. Montefiore looks forward to building on our 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.”
Montefiore currently operates nine health clinics in Westchester and provides specialty care in cardiology, neurology and women’s health, such as obstetrics and gynecology, fertility and reproductive medicine, fetal medicine and reproductive genetics. Montefiore’s experience has demonstrated that the best way to advance the health of a community is through strong relationships with local physicians.
Montefiore said it will collaborate with the Sound Shore medical community to ensure services remain uninterrupted for patients. In addition, Montefiore will work closely with labor unions to facilitate a smooth transition process.
“Providing ongoing jobs and supporting the local economy are important benefits of a vital healthcare system,” Dr. Safyer said. “We are making a long-term commitment to lower Westchester to support and improve the health of area residents as well as the health of the local economy.”
About Sound Shore Health System
In 1997, Mount Vernon Hospital (MVH), Sound Shore Medical Center (SSMC), Dorothea Hopfer School of Nursing and Schaffer Extended Care Center (SECC) affiliated to create one of the largest private healthcare systems between New York City and Albany - Sound Shore Health System. Centers of Excellence for Bariatric Surgery as well as 1st Trimester Antepartum Screening, and approved by the Commission on Cancer of the American College of Surgeons for its high-quality, comprehensive cancer programs - a distinction held by only 25% of hospitals treating cancer patients. SSMC has received the Joint Commission’s Gold Seal of Approval® for both hip and knee replacements. Its laboratories have been accredited by the College of American Pathologists for the past 48 consecutive years. Sleep Center is accredited by the American Academy of Sleep Medicine and the Cardiac Rehabilitation Center Program is certified by the American Association of Cardiovascular and Pulmonary Rehabilitation. SSMC is designated by New York State as an Area Trauma Center, Stroke Center and Perinatal Hospital with Level 3 maternal and neonatal intensive care services. It’s home to the Jacee Lynn Cappelli Diabetes Center and the Elaine and Melvin Merians Diabetes Education and Conference Center. Also on its campus is the Schaffer Extended Care Center, which provides 50 beds for short-term rehabilitation patients and 100 for long-term residents. Other centers of excellence include the Assertive Community Treatment Center, the Family Health and Wellness Center, the Hopfer School of Nursing and Intensive Case Management. MVH is designated as a New York State Department of Health Stroke Center and NYS HIV/AIDS Center. Both MVH and its Laboratory are accredited by The Joint Commission. The Dorothea Hopfer School of Nursing is accredited as an associate in nursing degree program by The National League for Nursing Accrediting Commission (NLNAC).
About Montefiore Medical Center
As the University Hospital for Albert Einstein College of Medicine, Montefiore is a premier academic medical center nationally renowned for its clinical excellence, scientific discovery and commitment to its community. Recognized among the top hospitals nationally and regionally by U.S. News & World Report, Montefiore provides compassionate, patient- and family-centered care and educates the healthcare professionals of tomorrow. The Children's Hospital at Montefiore is consistently named in U.S. News' "America's Best Children's Hospitals." With four hospitals, 1,491 beds and 90,000 annual admissions, Montefiore is an integrated health system seamlessly linked by advanced technology. State-of-the-art primary and specialty care is provided through a network of more than 130 locations across the region, including the largest school health program in the nation and a home health program. Montefiore's partnership with Einstein advances clinical and translational research to accelerate the pace at which new discoveries become the treatments and therapies that benefit patients. The medical center derives its inspiration for excellence from its patients and community, and continues to be on the frontlines of developing innovative approaches to care. For more information please visit www.montefiore.org and www.montekids.org. Follow us on Twitter; like us on Facebook; view us on YouTube.