BY MELANIE CARROLL 

The last three years have been tumultuous for Flushing Hospital, but its ultimate fate will soon be decided as creditors juggle the troubling numbers.

In 1996, the oldest hospital in Queens was taken over by its mammoth local competitor—New York Hospital Queens (NYHQ). As a result of the hospital’s ever increasing debt, the acquisition soon led to layoffs, bankruptcy court and worker agitation.

"We try to get things done but we’ve got one person doing the work of three people," said a cashier at the Flushing Hospital cafeteria. "I started working here before NYHQ took over. Then I had one job as a cashier. Now I have to clean the tables, count the money, be a cashier, and serve food. They work us to death."

Last week, NYHQ announced it was backing away from the debt-ridden Flushing —while Jamaica Hospital, in cooperation with Lenox Hill Hospital, wants to resuscitate the local healthcare fixture.

According to Assemblyman Brian McLaughlin, the Flushing community would be adversely affected. "If Flushing closes its doors it would be a tragedy for the people who rely on its services," he said. "The future of healthcare in Flushing is at stake."

Diagnosing The Crisis

On March 2, the hospital’s creditors committee will decide its fate; either it will be liquidated to satisfy creditors or Jamaica Hospital will take the helm.

As New York Hospital Queens (top) backs away, the fate of Flushing Hospital is now up to its creditors. Tribune Photos by (top) Liz Goff and (bottom) Ira Cohen.

Last December, NYHQ announced its plan to liquidate and transfer clinical operations out of Flushing. Jamaica Hospital and Lenox Hill Hospital responded weeks later with a proposal to takeover the bankrupt facility with the crucial support of unions and other hospital employees.

"It became clear that there was much internal resistance. New York Hospital was getting pounded," said McLaughlin. "The people at Flushing were saying, ‘we’re not going to work with you,’"

The National Health and Human Service Employees Union, the New York State Nurses’ Association and the Committee of Interns and Residents, along with non-union physicians, created a united front after hearing of NYHQ’s liquidation plans.

Union members circulated an internal petition calling for a three percent salary cut, as a bargaining chip to maintain the hospital. NYHQ caved under the pressure.

"We felt that it was impossible to move forward with our plan without the cooperation of the physicians and other labor," said Brian Salisbury, spokesman for NYHQ.

NYHQ then backed away from the hospital it had been running for years. "This is definitely a victory for the hospital workers. This is saving between 1200 and 1400 jobs," said Steve Kramer, National Health and Human Service Employees Union Vice President. "It is unprecedented, especially the way the doctors got involved. I’m sure Flushing will be a success story just like Jamaica Hospital was years ago."

The Not So Thin Red Line

Flushing’s debt looms large. The 250-bed hospital owes somewhere between $75 and $116 million to creditors. Much of the debt—$41 million—comes from medical malpractice suits. Last year the hospital lost approximately $15 million. Not to mention that the largest creditor wanted to liquidate it a just two weeks ago. NYHQ is owed over $40 million and the facility continues to lose over $1 million a month.

"It’s hard to figure out exactly how much Flushing owes," said Martin Bunin, attorney for the creditor’s committee. "In unsecured credit the amount is somewhere between $71 and $96 million. Secured credit is probably between a few million and $20 million. Given these facts it’s possible that Jamaica might back out."

The hospital’s fate remains in the hands of the creditor’s committee. The committee consists of several organizations owed money by Flushing—such as an employee pension fund, a union whose workers were illegally laid off, and a multitude of other companies including a pharmaceutical company. Next week a majority vote of 51 percent or more will determine if Jamaica’s plan cuts the financial mustard.

Decision Time

The Jamaica Lenox Hill proposal calls for $12 million to be put aside to pay off creditors over the next several years. It also contains $8 million to keep present operations afloat. But is that enough to keep the hospital from ruin?

"We are concerned about the money. We don’t know if Jamaica can handle the debt. We will have to wait and see," said a spokesman for Borough President Claire Shulman.

Negotiations between Jamaica and the creditor’s committee continue. Not only is the review process complicated, it is incomplete. The analysis of financial operations is still underway and many sections remain unclear.

"This is a big undertaking. There are more instances of missing information, which make this deal tough," said David Rosen, president of Jamaica Hospital. "For example the Y2K preparations might be an enormous black hole. These are the types of transitional issues we’re dealing with."

Meanwhile hospital workers want Jamaica to take the reins— but are aware that the situation is all but resolved. "Everyone is happy. But we are nervous about getting too excited," said Jesse Dilandro, a Flushing Hospital employee. "We are cautious. And praying that nothing bad happens with Jamaica. They have a good reputation with their workers."

Next week’s decision will be followed by the last and final step in the whole process. On March 10, the hospital will execute the committee’s wishes—be it liquidation or a return to a full-service community hospital. Effective March 10, all joint programs between NYHQ and Flushing Hospital could be null and void, and NYHQ employees working out of Flushing would be reassigned.

This is life or death for Flushing hospital, and most residents hope it will be the former.

"There is definitely a need for the hospital in the community," said Community Board 7 District Manager Marilyn Bitterman. "All the beds are full and that’s not going to change."