Shuttered Hospital Sells in Bankruptcy Court

MIAMI BEACH-Closed for the last nine months after a dispute with federal agencies over alleged Medicare invoice irregularities, the 40-year-old, 148-bed South Beach Community Hospital has been sold in US Bankruptcy Court here for $2.4 million. Hospital of South Beach LLC, a Delaware-registered corporation, was the buyer. Hospital of South Beach was the only bidder for the property.

The buyer has 90 days to close the deal, according to court filings. The new owners are David and Russell Galbut of Miami and Richard Kresch, a New York City manager of psychiatric facilities. The sale price equates to $16,216 per bed.

That price compares to the $91,623 per bed figure in the pending $35-million sale of the 382-bed Parkway Regional Medical Center in North Miami Beach. Miami-Dade county commissioners approved that sale Nov. 28. Miami-based Jackson Memorial Hospital is buying the asset from Dallas-based Tenet Healthcare Corp. and plans to rename the facility Jackson North Medical Center. The deal is expected to close by year’s end.