Less than three years after St. Vincent Catholic Medical Centers emerged from bankruptcy, the New York health system's board voted to close its 160-year-old Manhattan hospital. The vote ends months of scrambling to keep St. Vincent's Hospital Manhattan open with layoffs, pay cuts and emergency loans from New York state and two banks as officials courted potential partners for the financially failing hospital. The hospital employs roughly 3,500 workers.
St. Vincent's plans to close
“The decision to close St. Vincent's Hospital Manhattan inpatient services was made only after the board, management and advisers exhausted every possible alternative,” the system's board chairman Alfred Smith IV said in a written statement.
Swamped with about $700 million in debt—including loans to exit bankruptcy in 2007—St. Vincent Catholic Medical Centers is also seeking to divest its remaining assets, said Michael Fagan, a spokesman for the system. Since February, New York state has loaned the hospital $9 million and the hospital received another $10 million in emergency loans from TD Bank and GE Capital.
The hospital, which treated hundreds after the Sept. 11 attacks, will continue to operate outpatient services, including cancer and HIV/AIDS care, as officials look for “new sponsors or other operating alternatives,” the system said in a statement. The system will also continue operations as it seeks to close deals for its nursing homes, home health agency and health plan.
Patients will be transferred to nearby hospitals and hospital executives will file plans to close with the New York Health Department. Elective surgeries are expected to end on April 14, the statement said. The New York City mayor's office said the city's fire department will operate ambulances as needed to replace those run by St. Vincent's.
What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.