Mount Sinai Medical Center has pulled out of talks with St. Vincent's Hospital and people familiar with the talks said that "the scope of the financial commitment proved to be too great," according to an article yesterday at crains.com by Barbara Benson.
Mark Toney, the chief restructuring officer for St. Vincent's indicated that it will needed $275 million to $300 million over three years to survive and make needed upgrades, one source told crains.com.
In a statement, St. Vincent's said that "As the leadership of Mount Sinai has concluded that it will not pursue the operation of St. Vincent's as an acute-care hospital, our board will be in discussions with our management, legal and financial advisors to quickly access our strategic options moving forward."
"After completing a significant amount of due diligence, certain options have been excluded while others remain under consideration as this process continues," Mount Sinai said in a statement. "We have concluded that we are not going to pursue the acquisition of the inpatient operations," it said, nothing that it would "continue to consider other health care options for the communities served by St. Vincent's. A confidentiality agreement prohibits Mount Sinai at this juncture from providing more specificity."
Governor David Paterson said in a statement that "Over the past two months, all stakeholders have come to the table and have worked to provide assistance for SVCMC in every way they can. Furthermore, I have personally called each of the six potential SVCMC partners to indicate our willingness to work with them in assisting the hospital. I am disappointed that at this point, there does not appear to be a partner for the hospital."
He added that the state would "continue to work with the hospital, unions, elected officials, lenders and others until every viable avenue is exhausted. Most importantly, we will continue to ensure the health care needs of the community are met."
St. Vincent's emerged from bankruptcy just three years ago and had planned a major expansion that would have turned over most of its properties east of Seventh Avenue between 11th and 12th Streets to the Rudins for residential development so that it could erect a new tower on the site of the Edward & Theresa O'Toole Medical Services Building on the west side of the avenue between 12th and 13th Streets. That plan met with considerable controversy from some community residents and preservationists and has been in limbo since the hospital's fiscal crisis.
A total of about $20 million in loans from the state and GE Capital and TD Bank, the hospital's main creditors, gave it some breathing room as the hospital had been set to declare bankruptcy in February.
Mark Toney, the chief restructuring officer for St. Vincent's indicated that it will needed $275 million to $300 million over three years to survive and make needed upgrades, one source told crains.com.
In a statement, St. Vincent's said that "As the leadership of Mount Sinai has concluded that it will not pursue the operation of St. Vincent's as an acute-care hospital, our board will be in discussions with our management, legal and financial advisors to quickly access our strategic options moving forward."
"After completing a significant amount of due diligence, certain options have been excluded while others remain under consideration as this process continues," Mount Sinai said in a statement. "We have concluded that we are not going to pursue the acquisition of the inpatient operations," it said, nothing that it would "continue to consider other health care options for the communities served by St. Vincent's. A confidentiality agreement prohibits Mount Sinai at this juncture from providing more specificity."
Governor David Paterson said in a statement that "Over the past two months, all stakeholders have come to the table and have worked to provide assistance for SVCMC in every way they can. Furthermore, I have personally called each of the six potential SVCMC partners to indicate our willingness to work with them in assisting the hospital. I am disappointed that at this point, there does not appear to be a partner for the hospital."
He added that the state would "continue to work with the hospital, unions, elected officials, lenders and others until every viable avenue is exhausted. Most importantly, we will continue to ensure the health care needs of the community are met."
St. Vincent's emerged from bankruptcy just three years ago and had planned a major expansion that would have turned over most of its properties east of Seventh Avenue between 11th and 12th Streets to the Rudins for residential development so that it could erect a new tower on the site of the Edward & Theresa O'Toole Medical Services Building on the west side of the avenue between 12th and 13th Streets. That plan met with considerable controversy from some community residents and preservationists and has been in limbo since the hospital's fiscal crisis.
A total of about $20 million in loans from the state and GE Capital and TD Bank, the hospital's main creditors, gave it some breathing room as the hospital had been set to declare bankruptcy in February.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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