Peninsula Hospital was officially closed down on Monday, April 9, after three months of uncertainty over the hospital’s future. It was ordered to be closed after its lab failed a state Department of Health test. A sign hanging on the former hospital’s front entrance directs residents to go to St. John’s Episcopal hospital. Forum Newsgroup Photo by Luis Gronda.
It’s official—Peninsula Hospital is now closed, as of Monday, April 9.
The troubled hospital closed its doors after 104 years Monday, despite a last-minute attempt by a hospital fellow and former employee to stop the closure via an injunction.
The closure of the hospital leaves more than 1,000 people out of work and local residents down one hospital, the closest option now being St. John’s Episcopal Hospital on Beach 19th Street.
The state Department of Health (DOH) confirmed Tuesday that the hospital’s certificate of operation had been revoked on Monday, and the hospital was now closed.
The 10-hour meeting April 9 in bankruptcy court was held at the behest of Dr. Wayne Dodakian, a doctor at Peninsula Hospital who was terminated several weeks ago, though it is unclear if he was one of approximately 240 of the hospital’s employees that were temporarily laid off in March, with the promise of returning to work soon.
The 173-bed hospital had been shut down partially since February, when a DOH report detailed up to 66 deficiencies in the hospital’s labs, including poorly-trained employees and lack of safety protocols taken in storing blood for patients.
The decision to close the hospital came last March, shocking hospital employees and patients in the area while drawing criticism from area politicians concerned about the well being of local residents. The closest hospital, St. John’s, will have to shoulder the extra burden of caring for more patients redirected from Peninsula.
According to John Macron, the Far Rockaway attorney representing Dodakian, his client had filed the injunction on April 5. The reason Dodakian filed, according to Macron, was because he, like several members of Peninsula’s Board of Directors, felt that the hospital could reopen, as they had corrected the lab deficiencies and only needed DOH’s approval in order to reopen.
Dodakian withdrew his injunction motion on Monday.
Revival Home Health Care, a Brooklyn-based home care agency which had previously acquired Peninsula, was the main entity interested in keeping the hospital open, although recently, a potential savior for the hospital emerged in the form of People’s Choice Hospital. Operating in Chicago, the company describes itself as a boutique company that specializes in hospital management.
However, according to Joel Miele, Sr., chairman of the board of directors and a Howard Beach resident, the proposals presented to Lori Lapin Jones, the court-appointed bankruptcy trustee handling the hospital’s proceedings, were all rejected.
While different reasons were given for each rejection, sources said that DOH did not want the Brooklyn agency involved, due to past criticism of the group’s handling of the hospital.
“We had a couple of deals on the table, and the trustee was not satisfied with them,” said Miele, who was in court all day Monday for the proceedings. “She had a difficult job, which is to make sure that she does the best for the creditors.”
Despite this, Miele was hoping that the DOH would not take the hospital’s operations certificate, and allow the board the time to find a solution geared towards keeping the hospital.
“By [pulling the certificate], this location will likely no longer become a hospital, and I think that’s a little unfair, but more importantly, I think it’s a little unsafe to people that need a hospital in their community,” he said.
Jones had recommended for the closure of the hospital in late March, citing a lack of funding available to bring the hospital back up to code. It is unclear as to how much money was sought by Jones to bring the hospital back in operation, although various sources noted it would cost millions.
The decision left many stunned, including the Rev. Evan D. Gray, a member of the hospital board of directors and pastor for Macedonia Baptist Church in Far Rockaway.
Gray said he was in Alabama when he heard the news about the hospital’s closure, which surprised him as he said the hospital was preparing to get out of bankruptcy in May, a similar comment to what hospital officials told The Forum in March.
A longtime resident of Far Rockaway and a member of the board for the last 20 years, Gray said he was taking the closure of the hospital “very personally.”
“I can’t even drive past it without getting emotional,” he said, earlier saying that “[the closing] never should have happened.”
Dr. Seth Guterman, a representative from People’s Choice Group, the buyer interested in reviving Peninsula Hospital, said on Monday that their was still a chance for his group to step in. However, at the time, news had yet to break out about DOH stripping the hospital of its certificate of operation.
The group, which emerged recently as a last-second possible savior for the hospital, had gathered $30 million to commit to the hospital, which would lend the money for the necessary expenditures needed to bring Peninsula back into operation, according to Guterman. Those expenses would include a complete reorganization of the hospital, paying off debts to the hospital’s creditors, hiring and keeping staff members, and reopening expenses, among others.
Sources close to the situation said they had heard as per state bankruptcy law, due to her handling of the case, Jones is apparently due to get a partial commission of 10 percent from the sale of the hospital’s assets upon its closure—which could potentially be millions.
While some suggested that could have been a motivating factor behind Jones calling for the closure of the hospital, others said they believed and hoped that did not play a role in Jones’ decision, as she had earlier promised Peninsula officials that she would fight to keep the hospital open.
Requests for comment from The Forum to Jones’s office in Great Neck were not returned by press time.
Regarding the future, state Assemblyman Phil Goldfeder, who attended several rallies to save the hospital in the last few days, said Tuesday that while the hospital is now closed, a new fight starts as local legislators may explore the possibility of bringing in a new hospital facility.
“At the end of the day, we still need access to health care on the Peninsula,” Goldfeder said. “And if one hospital is closed, then I’ll make it a goal to pursue a new entity for residents.”
By Jean-Paul Salamanca
jp.salamanca@theforumnewsgroup.com
