St. Vincent's Gets Another Bailout, Still Shaky
NEW YORK—Citing a $700 million debt, St. Vincent's Hospital in West Manhattan may need a second bailout from the state, otherwise it may be closed down.
Gov. David Paterson announced on Sunday that the state would loan more to the embattled hospital.
According to an NY1 report, officials from St. Vincents met on Friday to discuss the hospital's fate, considering a plan to shut the facility down.
On Saturday night and Sunday, state officials, including Paterson, along with hospital officials met to create a short-term plan to keep the hospital afloat in the interim.
Officials from the hospital say the facility needs at least $20 million to stay open while they restructure.
“I have committed to lend another $3 million, in addition to the $6 million lent last week. The secured creditors, GE Capital and TD Bank, have agreed to match the state's $3 million,” said the governor.
He added, “We believe this assistance, if combined with assistance from the sponsors, concessions from the unions, management, and physicians, cost cutting actions and aggressive cash management will allow Saint Vincent's Medical Center the time needed to develop short-term- and long-term plans for the future.” {etRelated 29074, 28724}
Continuum Health Partners announced last week that they will withdraw their bid to take over the hospital, which would have helped the hospital become financially solvent, but would eliminate the emergency room, inpatient, and surgery services.
When Continuum's proposed bid came to light, numerous community and labor groups came together, along with city council members, to protest the closure of hospital services under Continuum's plan.
The protests mostly addressed the need for emergency care on the West side of Manhattan, as there are no other hospitals nearby that offer emergency services. Patients needing emergency care would have to go to the East side or Uptown.
Last week, New York state loaned the facility $6 million to help with payroll for the week.
St. Vincent's was founded over 150 years ago to help serve the poor communities in the city. It is the only Catholic-run hospital in New York City.
Read the original story at The Epoch Times
Gov. David Paterson announced on Sunday that the state would loan more to the embattled hospital.
According to an NY1 report, officials from St. Vincents met on Friday to discuss the hospital's fate, considering a plan to shut the facility down.
On Saturday night and Sunday, state officials, including Paterson, along with hospital officials met to create a short-term plan to keep the hospital afloat in the interim.
Officials from the hospital say the facility needs at least $20 million to stay open while they restructure.
“I have committed to lend another $3 million, in addition to the $6 million lent last week. The secured creditors, GE Capital and TD Bank, have agreed to match the state's $3 million,” said the governor.
He added, “We believe this assistance, if combined with assistance from the sponsors, concessions from the unions, management, and physicians, cost cutting actions and aggressive cash management will allow Saint Vincent's Medical Center the time needed to develop short-term- and long-term plans for the future.” {etRelated 29074, 28724}
Continuum Health Partners announced last week that they will withdraw their bid to take over the hospital, which would have helped the hospital become financially solvent, but would eliminate the emergency room, inpatient, and surgery services.
When Continuum's proposed bid came to light, numerous community and labor groups came together, along with city council members, to protest the closure of hospital services under Continuum's plan.
The protests mostly addressed the need for emergency care on the West side of Manhattan, as there are no other hospitals nearby that offer emergency services. Patients needing emergency care would have to go to the East side or Uptown.
Last week, New York state loaned the facility $6 million to help with payroll for the week.
St. Vincent's was founded over 150 years ago to help serve the poor communities in the city. It is the only Catholic-run hospital in New York City.
Read the original story at The Epoch Times
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