Long Island, N.Y.-based Long Beach Medical Center filed for chapter 11 protection on Wednesday to sell what remains of its assets after Hurricane Sandy devastated the hospital a little more than a year ago, the Wall Street Journal reported today. South Nassau Communities Hospital has offered $21 million for the assets, a bid that will be tested at auction. The funding for the purchase came from a $22 million grant that the state of New York provided to execute the sale and build an urgent-care facility on the hospital grounds. The Dormitory Authority of the State of New York is providing an additional $6 million grant to South Nassau Communities. South Nassau Communities is lending that money to Long Beach Medical to fund the chapter 11 case and help it continue operating. Long Beach Medical received $1.5 million of the funding before the bankruptcy filing and is requesting $4.5 million in the form of bankruptcy financing, which will require bankruptcy-court approval.
