YONKERS, N.Y.-Having been selected to provide management services to Yonkers General Hospital, St. John's Riverside Hospital is exploring a merger with its financially troubled neighbor. A decision likely will be made by 1997, said Jim Foy, president and chief executive officer of St. John's and acting administrator of Yonkers General. A key issue in negotiations with New York State Health Department officials is the retention of $3 million in funding that Yonkers General receives through the state's "distressed hospital" pool. Since May 1994, the two hospitals have operated under a single parent corporation, Riverside Health Care System, yet each has retained separate governing boards and management teams. But last October, the board of Yonkers General contracted with St. John's to provide management services worth $350,000 to $400,000 a year, Foy said. The two hospitals now share a CEO, a chief financial officer and some department heads. Yonkers General serves a large number of Medicaid recipients and medically indigent and is the largest provider of alcohol and substance abuse treatment in Westchester County, Foy said. The hospital is expected to lose $500,000 to $1 million on patient revenues of $45 million for 1995, he said. St. John's serves a middle-class commercial and Medicare population. Its campus sits two miles from Yonkers General, "but it's a million miles in terms of the neighborhood," Foy added.
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