Catholic Health World

New York City's St. Vincent's Hospital prepares for financial reorganization

After Catholic Health World went  to press with the Feb. 15 issue, The New York Times reported that Continuum Health Partners had withdrawn its proposal to take over St. Vincent’s Hospital Manhattan. The Times said that Continuum appeared to be open to reentering negotiations if the talks could take place on Continuum’s terms.

As Catholic Health World went to press, New York-area news outlets were reporting that Continuum Health Partners of New York had made a bid to take over St. Vincent's Hospital in Manhattan and to shutter many of its acute care services.

St. Vincent's is the last remaining acute care hospital run by Saint Vincent Catholic Medical Centers of New York, and it is the last Catholic hospital in Manhattan. The facility has been financially strapped for several years and is currently losing $5 million to $10 million per month, according to reports by the New York Post. It filed for bankruptcy in 2005 and is said to be considering a second filing, according to Crain's New York. It had been moving ahead with plans to build a replacement facility in New York's Greenwich Village.

Crain's also reported that New York state and GE Capital have loaned Saint Vincent $8 million to sustain it for a few weeks, as negotiations with creditors continue.

Saint Vincent had issued a request for proposals to Continuum and others to help the hospital undergo financial restructuring, according to information from the health system. According to reports in the New York Post, Continuum responded with its proposal which is said to include buying St. Vincent's and turning it into a small health center and closing out most of its acute care services. Saint Vincent said its board is evaluating the proposal.

Saint Vincent has retained the consulting company Grant Thornton to help guide it through the restructuring process. The system's board has named Mark Toney chief restructuring officer. He is national managing partner of Grant Thornton's corporate advisory and restructuring services practice.

The state health department said in a statement that while it does not have a decision-making role in Saint Vincent's restructuring, it has been involved in discussions with the system. It said it believes the restructuring is necessary, and it can help to assess proposals.

Henry Amoroso, president and chief executive of Saint Vincent, said New York budget cuts and the recession have worsened Saint Vincent's situation in recent years. He said in a statement to the press that Saint Vincent is working with its lenders to find a way forward.

He said, "I firmly believe that we can continue to work with the state as well as with other health care providers so we can emerge as a stronger health care system."

Copyright © 2010 by the Catholic Health Association of the United States
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