Parkway Hospital Files For Bankruptcy

Robert J. Aquino, M.D., president and chief executive officer of the Parkway Hospital in Forest Hills announced last week that the health care facility voluntarily filed for Chapter 11 bankruptcy to address their growing financial troubles, but that it would remain open and viable for the community in the meantime.
“We intend to use this opportunity to regain financial stability at Parkway, and focus on patient care initiatives and unique program development,” commented Aquino in a statement announcing the decision. “All indications and financial forecasts show that Parkway is well on the road to sound fiscal positioning.”
Aquino took office in July 2004 amidst an atmosphere of financial distress. In that time, Aquino said the hospital has made significant strides towards improving the hospital’s financial status and his leadership efforts have increased the hospital’s “overall utilization.”
“After reviewing the hospital’s finances, it was determined that the hospital was worse off financially than most thought,” said Gerald McKelvey, hospital spokesperson. “This move will allow the hospital to reorganize and restructure.”
Parkway has been open since 1963 and, McKelvey said, will continue to provide valued healthcare to the community despite financial troubles.
“If you are a patient at the hospital now, you would never know it was in bankruptcy,” he said.
Parkway is part of a growing trend of New York based hospitals who have had to file bankruptcy to escape full-on financial collapse. Hospitals run on private and public payments that have decreased steadily over the years, said one health care organization.
“Hospitals in the New York area are under tremendous pressure due to lack of patients with health care, cuts in public health care reimbursements and the domination of HMO’s in the private market,” commented Mary Johnson, spokesperson for the Greater New York Hospital Association, an organization representing over 200 hospitals. “Unfortunately hospitals and medical institutions are being forced to turn to the courts for help to ensure that quality access to health care is preserved.”
In addition to filing bankruptcy, the hospital has secured substantial monetary assistance to aide in the financial reconfiguration and to fund its operations throughout the bankruptcy process.
“With the ongoing dedication of our staff, members of the community, strategic partners and all other supporters of Parkway, we will be a stronger healthcare facility that will continue in its tradition of providing caring and compassion to those in need of our services,” added Aquino.
melissa@queenscourier.com