TLC Health Network Bankruptcy Exit – Transformation/Turnaround Plan

TLC Health Network Soon to Exit Bankruptcy – The last four years have been a challenging period for TLC Health Network as we expect to exit bankruptcy by this December 2017.  In 2013, TLC filed for Chapter 11 Bankruptcy with reorganization.

A transformation/reorganization plan was developed that represented TLC’s strategy to turnaround the organization into a financially sustainable healthcare provider.  The focus was on service lines that would assure the community continued access to quality health care programs and services.

In refining the transformation plan TLC encountered many challenges. TLC understood the need to involve other stakeholders that had an interest in the future of TLC.  This included the Department of Health that provided financial assistance to TLC as a vital access provider.

The transformation plan has been amended in order to be part of a larger affiliation with the merger of TLC and Brooks as well as future affiliation with Kaleida Health.  Similar affiliations have become the pathway chosen by many smaller rural hospitals in order to survive.  The challenges faced included declining and fluctuating patient volume, reduced reimbursement, physician and staff shortages, regulations, competition, declining populations and older physical facilities with fixed overhead.  TLC supported the intention of larger systems to create access to quality care where patients live and to keep services where they are needed.

In spite of the many challenges, TLC was able to maintain quality programs, a 4 out of 5 Star Federal ranking and high patient satisfaction scores while implementing cost reductions and efficiency improvements.  However, in the end, financial reality reinforced the need for TLC to merge with Brooks and ultimately Kaleida.

In anticipation of the merger between TLC and Brooks within the next few months, TLC’s Board of Directors approved the development of a Management Agreement with Kaleida to oversee day to day operations as an important step in securing a better future.  This will be effective shortly consistent with the bankruptcy exit and will result in further savings and efficiencies.  The merger will result in a new single entity known as Brooks-TLC Hospital System, Inc. with two main campuses; Fredonia and Irving.

The TLC Irving campus will offer the following services:

20 Bed Inpatient Mental Health Unit

20 Bed Inpatient Chemical Dependency Labs

(CD/Substance Use Disorder (SUD) Unit

(operational within the first quarter 2018)

5-10 Bed Observation Unit (up to 48 hour stay)

Ambulatory Surgery

Certified Home Health Care

Chemical Dependency Outpatient Clinics in

Derby and Cassadaga

Emergency Department


Imaging (Radiology)



Physical Therapy Irving & Gowanda

Primary Care Gowanda & Forestville

Pulmonary Function Testing

Respiratory Therapy

Stress Testing

Surgery including Short Stay General

Surgery and Orthopedic Surgery

Urgent Care

Development of a Musculoskeletal Center operational within the first quarter 2018 with consolidation of existing rehabilitation services including:

  • Cardiac Rehab
  • GYM
  • Occupational Therapy
  • Orthopedics
  • Physical Therapy
  • Speech Therapy
  • Wellness Education

Acute Care/Med-Surg and Nursing Home/Rehab Units to be discontinued effective 11/30/17.  The last patient admission dates will be 11/21/17 for sub-acute rehab care and 11/27/17 for acute med-surg care.

In approaching the end of Bankruptcy appreciation is extended to the dedicated employees, staff, Medical Staff, Board of Directors, donors, friends and community that remained loyal throughout the bankruptcy period.  Without their hard work and commitment TLC would not have achieved this milestone in its history.  We are grateful for all of their individual and collective efforts that have allowed the continuation of quality healthcare to be delivered by TLC as we look forward to a better future.

The Board of Directors and Administration

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