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LICH Factbook 2.0

LICH Factbook 2.0

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Published by Paco Dave Abraham
The Cobble Hill Association's timeline and history of the efforts by Suny Downstate to close Long Island College Hospital, and our group's collected efforts to save it.
The Cobble Hill Association's timeline and history of the efforts by Suny Downstate to close Long Island College Hospital, and our group's collected efforts to save it.

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Published by: Paco Dave Abraham on May 02, 2013
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08/20/2013

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LICH Factbook 2.0
Provided by the Cobble Hill AssociationPrepared by Jeff StraboneLast updated: May 1, 2013
Update:
The Seven Key Points remain unchanged from Factbook 1 (dated March 19). The Timeline, however, contains a ton of new information.
See especially the May 1,2013 RFI document
which provides the most
comprehensive set of facts
about LICHthat we have seen so far. The section on the proposed legislation to allow for-profitcorporations to operate a hospital in Brooklyn has been updated: although thelegislation was blocked in the Assembly, Governor Cuomo continues to support it.
Purpose
 To provide reliable, sourced information, with quotations and links, for all partiesinterested in the future of LICH. The summary of Seven Key Points provides the mainpoints as we see them. The all-inclusive Timeline is for those who want to knoweverything there is to know.
Sections of this document
1. Summary: Seven Key Points2. Timeline of events3. Proposed legislation
Contact
Roy Sloane, President of the Cobble Hill Association: roysloane@earthlink.net
 
 
SEVEN KEY POINTS: LICH AND SUNY FACTS
 The SUNY Board of Trustees has voted to seek the NYS Department of Health’s approval to close LICH. The Trustees claim that LICH is a financial burden on SUNY Downstate. Despite SUNY’s spin, the evidence tells adifferent story:
LICH is not bringing down SUNY Downstate;
SUNY Downstate is bringing down LICH.
 The documentary evidence in this report, compiled strictly from the NYS Comptroller’s audits of SUNY Downstateand SUNY’s own online data, shows that SUNY Downstate is over $100 million in the red
even without LICH
. Infact, LICH was on the rebound before its takeover by SUNY, as shown below, with losses of only $4.7 million in2010, the year before the merger.As the NYS Comptroller’s audits show, SUNY Downstate is financially incompetent. And, as SUNY’s ownmaterials show, at the same time that SUNY is moaning about the difficulties hospitals face in today’s market,they want to close LICH in order to open another hospital elsewhere in Brooklyn. Meanwhile, the state legislatureis considering a bill to allow a for-profit corporation to operate hospitals specifically in Brooklyn. All the evidenceappears below with links to the sources. Happy reading! The NYS Comptrollers January 17, 2013 audit of SUNY Downstate is available here:http://osc.state.ny.us/audits/allaudits/093013/12s72.pdf 
1. SUNY was looking into LICH’s real-estate value even before the NYSComptroller’s audit in January 2013.
SUNY Downstate admitted in comments to the NYS Comptroller that they already hadappraisals of LICH’s real estate.
NYS Comptroller's audit, page 19, SUNY's comments on the draft audit:
“DMC[Downstate]does have recent appraisals that show values of the PPE[Property Plant and Equipment]ranging from $280-$500 million, which results in assets exceeding liabilities.”
2. The State’s declining support has driven SUNY Downstate’s downfall.
 The State itself has pulled the rug out from under SUNY Downstate. You can't blame LICH forthat.
NYS Comptroller's audit, page 10:
“According to Hospital officials, when the
State Medicaid program cut reimbursement
forpsychiatric, acute care and rehabilitation services in 2011, the Hospital had to absorb a $20million loss.”Between 2010 and 2011, direct State tax support from SUNY to the Hospital went from $36million to $27 million; a decline of $9 million. Moreover, between fiscal years 2007-08 and2011-12,
annual State support decreased by $23.5 million
.”“SUNY support for indirect costs and debt service fell from $7.7 million in 2010 to about $1.8million in 2011;
a decline of $5.9 million
.”
3. LICH was on the rebound before SUNY took over. SUNY itself? Not somuch.
SUNY Downstate acquired LICH in May 2011 and ran it into the ground. In 2010, the last fullyear before the takeover, LICH was on the rebound.
NYS Comptroller's audit, page 10:
“In fact, for 2009 and 2010, LICH had operating losses of $39.1 million
and $4.7 million
,respectively.”
 
LICH Factbook Prepared by the Cobble Hill Association
Meanwhile, SUNY Downstate was running itself into the ground all on its own.
NYS Comptroller's audit, page 10:
For the year ended June 30, 2012, the Hospital (including its three component facilities)reported expenses totaling $853.2 million. The Hospitals financial statements showed a
losstotaling $275.8 million for the yea
ended December 31, 2011.”LICH is not pulling down Downstate. Downstate is pulling down LICH.NYS Comptroller's audit, page 14:“The Hospital [Downstate] anticipates that the
structural cash deficit excluding LICH
wouldincrease from $71.7 million for the 2011-12 fiscal year to
$92.5 million for the 2013-14 fiscalyear 
. The structural cash
deficit for LICH would increase from $0.9 million
for the 2011-12fiscal year
to $72.5 million
for the 2013-14 fiscal year.”
4. At the same time that the SUNY Board of Trustees is trying to close LICHand moaning about the difficulties hospitals face, they are simultaneouslyplanning to open a new hospital elsewhere in Brooklyn.
According to page 4 of SUNY’s February 28, 2013 Power Point presentation, phase three of their Plan, after closing LICH, is to open a new hospital elsewhere.“Phase 3 – Pursue a Brooklyn Solution and Long-Term Sustainability for Downstate MedicalCenterDevelop a plan for creating a Brooklyn hospital consortium, including significant affiliations andpartnerships that will serve to make Downstate Medical School the medical school for hospitalsin Brooklyn. Explore the potential of the consortium to
develop a new hospital for central/northern Brooklyn
.”
http://www.suny.edu/Board_of_Trustees/webcastdocs/9%20-%20Future%20for%20Downstate%20Medical%20Center.pdf 
5. SUNY Downstate is incompetent. Don't believe us. Take it from the NYSComptroller.
One of the Comptroller's 'Key Findings' was financial mismanagement by SUNY Downstate.
NYS Comptroller's audit, page 1:
Primary reasons for the Hospitals financial stress include: the costs associated with theacquisition and operation of the LICH and Bay Ridge facilities amidst an already deterioratingfiscal environment; the failure to take timely actions to address emergency health care issuesimpacting the Brooklyn community; and
weak governance and ineffective financialmanagement
.”
6. The NYS Comptroller's previous audit of SUNY Downstate, in 2012, foundwaste, fraud, and abuse.
NYS Comptroller's audit, page 6:
“The report concluded that Downstate had poor procurement practices that led to
fraudulent
 and uneconomical vendor selection,
inefficient
implementation of a multimillion dollar softwaresystem, and
conflicts of interests
between an employee and a vendor.
These deficiencieslikely contributed to the financial distress
at the Hospital.”

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