Negotiations have broken down between SUNY and the second bidder selected to redevelop Long Island College Hospital.
SUNY says the The Peebles Corporation is not negotiating in good faith and has reneged on parts of their proposal.
Peebles counters that SUNY's demands were unrealistic and unclear.
Disagreements arose over when Peebles would take over responsibility of medical services, when environmental tests would be conducted, and who would be responsible to cover the clean up costs.
Peebles says they do not know if they will continue with their proposal.
Talks with the first bidder, Brooklyn Health Partners, broke down over financial terms.
SUNY says it will now turn to the bidder whose proposal was ranked third, Fortis Property Group, LLC, which is working with NYU Langone Medical Center and Lutheran Health Care.
SUNY says although an agreement approved by a judge allowed them to stop service at the hospital earlier this month, it plans to continue its current level of emergency service as negotiations continue.