It appears that Lake Shore Hospital will be staying open and the TLC Health Network has been given permission by the bankruptcy court to present its own plan for reorganization. Scott Butler, TLC's Divisional Director for Business Development released a statement announcing the cancellation of closure plans and WARN notices. He also indicates that at a recent Bankruptcy Court hearing, TLC also received permission to present its own plan for reorganization sometime this fall. As a result, TLC and all of its facilities will remain open. Here's the full statement released Wednesday afternoon:
"On August 26, TLC Health Network mailed letters to all of its employees stating that the health system was rescinding its previous WARN notifications. The cancellation of the potential layoffs comes on the heels of approvals by the Department of Health to continue its operations independently from Lake Erie Regional Health System of New York and withdraw all previously established closure plans. At a recent Bankruptcy Court hearing, permission was also granted to TLC Health Network to present its own plan for reorganization sometime this fall as a means of exiting Chapter 11 and in lieu of pursuing a sale of Lake Shore Health Care. In the meantime, TLC and all of its facilities remain open with the assistance of a $6.6 million IAAF grant and some operational improvements that have already been introduced. As TLC’s Board and administrative team work together with various community stakeholders to formulate a reorganization plan, all are excited about the positive trajectory the organization seems to be on and our potential for continuing to deliver high-quality health care in this community for many years to come."
Congressman Tom Reed says TLC’s decision to keep Lake Shore Hospital open is good news for Chautauqua County. Reed issued this statement on TLC’s decision:
"Lake Shore plays a significant role in the quality of life in our area - from giving patients the critical health care they need to the hundreds of jobs the hospital supports. That’s why news that the hospital will stay open and cancel layoffs is so important for Chautauqua County: jobs will stay in the area and families won’t have to travel long distances to access they care they need. Between the federal funds we secured for the hospital earlier this year and partnering with hospital and local officials, we’re working to get the hospital in the best possible position to secure its long-term viability. Rural hospitals are real staples in our community and we’ll continue the work to make sure Lake Shore stays here for years to come."
