SUNY Downstate Medical Center is on life support.
Brooklyn’s fourth largest employer is on the verge of “insolvency” because of mismanagement that included acquiring two other financially troubled health care institutions, according to a scathing state audit.
SUNY Downstate would be broke already had it not received emergency loans from SUNY, state Comptroller Tom DiNapoli said.
“SUNY Downstate’s fiscal condition is dire and it needs all hands on deck if it going to survive,” DiNapoli said. “Management has made poor financial decisions that often times weren’t justified by economic conditions. As a result, the hospital is hemorrhaging millions of dollars every week.”
DiNapoli said Downstate was losing $3 million a week last year, or an estimated $200 million.
DiNapoli claimed the hospital’s acquisition of Long Island College Hospital and Victory Hospitalwere mistakes. Downstate’s University hospital is in East Flatbush, LICH is in Cobble Hill and the former Victory Memorial is in Bay Ridge.
A state panel had recommended the closure of Victory Memorial because it was underutilized. LICH had massive operating losses and consulting studies recommending Downstate’s merger with LICH were based on “flawed and unrealistic business assumptions,” DiNapoli said.
But the report also said Downstate suffered from cuts in government aid, including Medicaid funding – matters out of their control.
Downstate, which has 8,000 staff and faculty, did not dispute the findings.
Downstate has a new leadership team that “developing a comprehensive, fiscally responsible plan to ensure medical education and quality healthcare continues for the people of Brooklyn,” said SUNY Chancellor Nancy Zimpher.