Board of Trustees Authorizes Final Agreement with Fortis Property Group for the Purchase of the LICH Complex that Includes NYU Langone Medical Center and Lutheran HealthCare Providing World-Class Medical Services

June 25, 2014

New York – The State University of New York Board of Trustees today voted unanimously to authorize the final agreement with Fortis Property Group for the purchase of the former Long Island College Hospital (LICH) complex.

The deal provides a viable, world-class healthcare solution for the community and allows SUNY to return to its core academic mission, to resume focus and resources on stabilizing Downstate and University Hospital, and to protect its students, campuses, and taxpayers from massive financial losses associated with LICH.

“Today, the Trustees acted unanimously to approve an agreement with Fortis, marking a significant milestone that will benefit the State University of New York’s nearly half-million students and provide a viable and world-class long-term healthcare solution for the Brooklyn community,” said Board Chairman H. Carl McCall. “As we move toward a conclusion of the sale, health services will continue uninterrupted and increase over time. We can now fully return our focus to SUNY's core academic mission and strengthening Downstate and University Hospital. I want to again commend Judge Johnny Lee Baynes, who has overseen this process from the beginning with an unparalleled commitment to reaching this fair a beneficial outcome." 

SUNY will continue to maintain the current level of services at the former LICH complex and is committed to providing a seamless transition to NYU Langone Medical Center (NYULMC), which will assume operations on approximately September 1, 2014. Costs incurred by SUNY will be paid by Fortis Property Group. This agreement ensures continuous emergency medical services at the LICH site for the residents of Brooklyn as well as a guarantee to expand and diversify medical services offered to the community, including an ambulatory surgery center, observation beds, and primary and specialty care on the site.

Additionally, Lutheran Family Health Center will operate a Federally Qualified Health Center (FQHC) with primary specialty and dental care, and residents will have access to dialysis services and an HIV/AIDS clinic.

The total sale price is $240 million plus the additional funds to cover the operating costs for SUNY to run the Emergency Department during the transition period and $5 million for a Community Foundation to address the ongoing healthcare needs of the community. The sale will be secured by a $24 million deposit or 10 percent of the purchase price upon execution.

Fortis Property Group and NYU will establish a LICH Transformation Advisory Panel, a Clinical Advisory Panel and a Community Ombudsperson, and reserve additional space for the expansion of health care services and community space as determined by the assessment by the Transformation and Clinical Advisory panels.

Fortis Property Group has committed to construct a new state-of-the-art primary medical facility that will be subject to a 20-year deed restriction for medical use. Construction is expected to take 36 months, after which time NYULMC and Lutheran will move to the new facility.

About the State University of New York
The State University of New York is the largest comprehensive system of higher education in the United States, with 64 college and university campuses located within 30 miles of every home, school and business in the state. In 2015–16, SUNY served nearly 1.3 million students, including nearly 600,000 in credit-bearing courses and programs and more than 700,000 through continuing education and community outreach programs. SUNY students and faculty across the state make significant contributions to research and discovery, resulting in nearly $1 billion of externally sponsored activity each year. There are 3 million SUNY alumni worldwide, and one in three New Yorkers with a college degree is a SUNY alum. To learn more about how SUNY creates opportunity, visit www.suny.edu.


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