The New Parkway Hospital emerging from bankruptcy

The New Parkway Hospital has taken the next step to emerge from bankruptcy. On Tuesday, June 19, Judge Prudence Carter Beatty of the Federal Bankruptcy Court Southern District set the date for a confirmation hearing - Thursday, July 26.
In order for a hearing date to be assigned, the Forest Hills hospital had to present the courts and its creditors with a viable exit strategy from debt, and all parties had to agree to the plan.
Dr. Robert J. Aquino, the Hospital’s President and CEO, said that he was “gratified by Judge Beatty’s decision. This takes us one step forward towards emerging from ‘Chapter 11’ reorganization.”
In 2005, Aquino bought the financially failing facility but was unable to bring the books back into the black. That same year, Parkway filed for Chapter 11 bankruptcy, owing an estimated $30 million to the IRS, utility companies, ambulance workers and their employees’ union - Service Employees International Union Local 1199 - which represented more than 600 workers.
In November 2006, the state’s Berger Commission, which reviews New York’s hospitals, advised that Parkway, which has about 250 beds and was operating at about 60 percent of its capacity, close down. Nine hospitals statewide were placed on the chopping block, and three have already taken steps to shut their doors.
However, Aquino, hospital staff members and local residents rallied to keep Parkway open, saying that because the hospital does not receive state funds, it could not be ordered to close, and officials said that Parkway has added a slew of new services since the Commission’s report was released with more to come. Earlier this month, Parkway also celebrated their 45th anniversary in the community.
In addition, hospital officials wrote in a statement that they believe once the constraints of bankruptcy are removed, the hospital, located at 70-44 Grand Central Parkway, can begin contemplating major capital improvements and new affiliations.
“The last two years had been difficult for the hospital, but that this positive outcome made the struggle well worth it. Hopefully, we can now focus all our efforts on patient care and the business of medicine,” Aquino added.