The Real Deal New York

Ailing Interfaith Medical Center makes deal with state

New management team brought on board in bid to keep hospital from going under
March 27, 2014 10:07AM

The Interfaith Medical Center has come to an agreement with the state that would immediately give a management team the authority to run the Bedford-Stuyvesant hospital.

The state-mandated team would effectively rescue Interfaith from bankruptcy by May 14, and restructuring would replace senior management and amid a funding contribution.

The U.S. Bankruptcy Court signed off in January on $7.5 million in state aid to the 1545 Atlantic Avenue site, as previously reported. The funds — $3.5 million of which were handed over right away – were expected to help the hospital through March. Amid protests from unions, the state had called for Kingsbrook Jewish Medical Center to take over the hospital’s clinics before releasing the funds. [DNAinfo]Mark Maurer