The hospital will take an ownership stake of at least 10 percent in the proposed surgery center, which will be co-owned by 14 physicians.
The hospital stated that the investment is intended to reduce financial strains that the proposed surgery center would create for the hospital as a result of increased competition.
The proposed center still must obtain a certificate of need in order to proceed with development, which is being opposed by NYU’s Langone Medical Center and the Greater New York Hospital Association.
The proposed surgery center is expected to earn $1.67 million in profits on total revenue of $9.72 million by its third year, according to the report.
Read Crain’s New York Business‘s report on Lenox Hill’s investment in SurgiCare of Manhattan.
