IRVING - The New York State Department of Health has given notice that an Interim Access Assurance Fund grant has been awarded to TLC Health Network in the amount of $6,656,000 as part of the Medicaid Waiver process.
This funding is restricted to general operating expenses and the continuation of services within the local community. While these funds cannot be used to pay for capital projects, retirement of debt, or other non-operational activities, they are intended to keep TLC in business at least through March 2015.
An initial payment of around $2 million is expected to be received shortly by TLC to address their immediate financial needs through Aug. 31. Thereafter, payments will be made on a monthly basis based on TLC's actual monthly financial performance and cash needs in order to sustain operations for the following month.
TLC is crediting the efforts of many individuals including the local, regional and state offices of the DOH and state Sen. Cathy Young, with the resulting IAAF funds.
"We are grateful for the support of all of those who see Lake Shore Health Care Center as an invaluable asset to our community and were willing to lobby on our behalf to ensure we received these funds," explained Scott Butler, Divisional Director of Business Development for TLC. "This money affords our team the time necessary to complete a reorganization/ strategic plan for long-term financial viability and success."
The time constraints to develop a reorganization plan for TLC have been a concern for the organization, as the court previously authorized an auction process with bids due by July 11. However, in order for an auction to proceed, two or more bids that meet the court established requirements are needed. After considering any bids, it would be up to TLC, in consultation with their legal representation, representatives of the Creditor's Committee, and Secured Creditors, to decide which option represents the best alternative for the health network and its many constituents. The receipt of the IAAF award will ensure that at least one of those options is the continuation of TLC's operations.