Lake Shore Hospital Declares Bankruptcy

December 17, 2013 Updated Dec 17, 2013 at 7:15 AM EDT

By Megan Erbacher

December 17, 2013 Updated Dec 17, 2013 at 7:15 AM EDT

DUNKIRK, N.Y. (WKBW) Lake Shore Health Care Center's operator, TLC Health Network, filed for Chapter 11 bankruptcy today.

Lake Shore Hospital is part of the Lake Erie Regional Health System of New York, or LERHSNY. According to the LERHSNY board, fellow system-member Brooks Memorial Hospital loaned TLC/Lake Shore $3.7 million to keep the health center running.

Despite that loan, Lake Shore is operating on a loss of more than $9 million on the year.

Earlier this year, the LERHSNY board of directors voted to set a closure date of January 31, 2014 for the hospital unless someone comes forward with a suitable purchase offer. The board now says it may ask the New York State Department of Health to close earlier if the health center cannot find a new funding source.

The bankruptcy filing allows the TLC Health Network to continue operating its other facilities while the Lake Shore Health Center is either restructured or sold.

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