From The Press of Atlantic City — The state Department of Health and Senior Services says the surgeon who signed a letter of intent to purchase Kessler Memorial Hospital appears to be in breach of that agreement and wants the hospital to pursue other options.

In a letter to hospital officials dated Wednesday, Department of Health and Senior Services Commissioner Heather Howard said her department was advised that the hospital had still not received a deposit from cardiovascular surgeon B. Reddy Dandolu.

Dandolu signed a letter Friday stating his intentions to purchase the hospital for a reported $7.5 million. But the nonrefundable $300,000 deposit that was supposed to be wired to Kessler by the close of business Monday under that agreement never arrived, according to department spokeswoman Donna Leusner.

It would appear this is a material breach of the Letter of Intent, Howard said in the letter. If so, it also appears to be a prudent measure to pursue alternative discussions to secure appropriate health care services for your community.

The money was needed to help cover a $500,000 payroll shortfall that prevented the hospital’s employees from getting paid Friday. Hammonton agreed to loan the hospital $200,000 for the balance, with a stipulation: the hospital must have possession of Dandolu’s down payment before the taxpayer funds are released.

The hospital notified the department Tuesday that it would voluntarily stop admitting new patients due to its inability to meet payroll. And the state issued a divert advisory a request to take patients elsewhere to area ambulance squads over the weekend.

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