BUFFALO, N.Y. (WIVB) - Sheehan Health Network has announced it will be closing its medical facility in Buffalo.
The 124-year-old hospital has had issues paying its employees in the past. On Saturday, its Board of Directors announced the decision to close the hospital on Michigan Avenue, determining that maintaining it is not sustainable for a long-term future. 150 employees will lose their jobs and close to 10,000 patients will be impacted.
In a press release, President and CEO Mary Kargbo said, "This is a very difficult day for Sheehan and the community we serve. A great deal of planning and care has gone into trying to preserve this institution. During this transition, we are firmly committed to providing quality care for our patients and supporting our employees affected by this decision."
After Saturday's decision, the board will submit a plan next week to close the facility to the State Department of Health. Doctors and nurses will continue to work at the hospital as it begins to shut down.
The closure comes after a recent expansion of the facility. Just two-and-a-half years ago, Sheehan Health Network received a $2 million grant from NYS to expand. A few months later, union members ratified a plan that boosted wages and pension contributions. But by the middle of 2011, the hospital had to promise that employees would be paid after workers' paychecks bounced.
Sheehan Health Network says as they work to close down, they will ensure employees continue to get paid. The hospital is awaiting Medicaid and Medicare reimbursements, which the board says will go towards employees' paychecks.
Reports say it will take around three months for the hospital to close up for good.
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