The Real Deal New York

Deal done: SUNY signs over Long Island College Hospital

Move marks the end of a two-year odyssey to offload the hospital

October 10, 2014 08:00AM

From left: NYU Langone dean and CEO Dr. Robert Grossman, Long Island College Hospital and Fortis president Joel Kestenbaum

From left: NYU’s Dr. Robert Grossman, Long Island College Hospital and Fortis’ Joel Kestenbaum

What a long strange trip it’s been. The State University of New York has signed a deal to sell Long Island College Hospital to Fortis Property Group. The move marks the end of a two-year odyssey to offload the hospital, which SUNY deemed financially unviable shortly after taking the reins at the Cobble Hill medical complex, according to Capital New York.

As part of the final deal, New York University will invest $175 million in a new four-story facility that is twice the size of the building it originally proposed when it partnered with Fortis to maintain medical services at the site, the news site reported. Fortis, which bid $240 million for the property in June, will develop residences on the land.

The sale has been hampered by protests, criticism over the request for proposals process, bids that fell through and a legal challenge brought by the New York State Nurses Association over hiring at the facility to be operated by NYU.

The state attorney general and state comptroller must grant final approval to the deal, according to Capital New York. [Capital NY]Tom DiChristopher

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