Brooklyn firm in vaccine probe grappling with money woes

Brooklyn firm in vaccine probe grappling with money woes

More On:

Coronavirus in NY

Leading Brooklyn rabbi tests positive for COVID-19

NYC takes ‘brain biopsy’ COVID-19 test out of regular rotation

Vaccines for office workers are struggling landlords’ best shot

The incredible shrinking Empire State

The Brooklyn-based health care company accused of fraudulently obtaining and doling out COVID-19 vaccines was struggling with crushing debt, according to a report the firm filed with the state.

ParCare — whose handling of the vaccine is being investigated by state health and law enforcement authorities — reported a cash crunch after it bought out the operation of another health care company and took on debt to acquire and open new facilities, the not-for-profit group’s audit filed with the attorney general’s charities bureau shows.

ParCare’s precarious financial condition was cited as a red flag in an independent audit filed with the state by its accountant, Gettry Marcus.

“The Organization has experienced recurring losses from operations, incurred startup costs, absorbed debt, taken on acquisition debt; and its total liabilities of $10,612,521 exceeds its current assets and property and equipment by $6,168,106, and as a result, has a net capital deficiency amounting to $5,677,220 at December 31, 2018,” ParCare said in its report, filed in February.

The report covered the firm’s financial position for the 2018 and 2017 calendar years.

ParCare had a net operating deficit of $1.4 million in 2018. It reported $3.17 million in revenues but $4.6 million in expenses.

ParCare’s audit said it worked out agreements to “defer repayment of scheduled installments due on loans in the amount of $9,222,056” as well as other expenses of $909,592 to help “operating losses and needs.”

“Management believes that these actions will enable the Organization to continue as a going concern through February 1, 2021,” the report said.

On Saturday, state Health Commissioner Howard Zucker said the New York State Police was investigating allegations that ParCare “may have fraudulently obtained COVID-19 vaccine, transferred it to facilities in other parts of the state in violation of state guidelines and diverted it to members of the public.”

On Sunday, ParCare said it “proactively returned” its remaining doses of the Moderna vaccine amid the state probe.

The company also said it “provided the documentation regarding the proper receipt of the vaccine to the NYS DOH.”

Zucker said the probe involved ParCare’s clinic in Orange County, one of six it operates. The other five are in Brooklyn and Manhattan.

Meanwhile, campaign records show ParCare CEO Gary Schlesinger has contributed to the campaigns of a number of pols, including $75 to Mayor Bill de Blasio in 2013.

Schlesinger has also given $2,500 to the campaign of Brooklyn DA Eric Gonzalez, $360 to Brooklyn Councilman Kalman Yeger, $100 to Mark Levine, who chairs the City Council’s Health Committee, and $175 to Brooklyn Councilman Robert Cornegy, who is running for borough president, records show.

Share this article:

Source: Read Full Article