Sunday, May 23, 2010

2 more Manhattan hospitals try to get out of trouble

From Crains:

In a bid for financial security, North General Hospital is transferring its health center, mental health services and cancer center to the Institute for Family Health. The Harlem hospital has been in talks for weeks with various potential partners to find ways to restructure and stop a heavy flow of operating losses.

The financial viability of North General is a sensitive topic in Albany. The politically-connected hospital has been faltering financially for months, and the Paterson administration does not want to see another hospital fail so soon after the closing of St. Vincent's Hospital. North General's bonds are backed by the state, and the hospital has an interest-only bond payment of nearly $3 million that's due on Aug. 15.

To address its financial difficulties, North General has struck a deal with a growing empire run by Dr. Neil Calman, president and chief executive of the Institute for Family Health, which runs a network of federally qualified health centers.

From the NY Times:

It has long been the boutique hospital of choice for the rich, the famous and New Yorkers who seek pampering during childbirth and orthopedic surgery.

But on Wednesday, Lenox Hill announced that after 153 years as a standalone hospital on the Upper East Side, it was entering a partnership with North Shore-Long Island Jewish Health System, a powerhouse of 15 hospitals and other health care centers in more humble parts of Long Island, Queens and Staten Island.

The partnership, with North Shore the corporate parent, is something of a marriage of convenience for the small, genteel but money-losing hospital in Manhattan and its newly rich, upstart neighbor.

For Lenox Hill, which is projected to lose $15 million this year despite its prime location, hospital officials said, joining a bigger health care system provides a way out of financial trouble. For North Shore-Long Island Jewish, it offers a toehold in Manhattan and access to wealthy, well-connected patients.


Anonymous said...

"pampering during childbirth" What this means is staying in the hospital for 3 days after birth, for observation, something that is standard everywhere else on Earth and was so here until the 1980's. Thank you Ronald Reagan.

Queens Crapper said...

No, it's more like the segregated maternity services (rich vs. poor) that Lenox Hill offered until being outed during the 1990s.

Anonymous said...

Give me a break. Oh snap! Who's going to fix it?

Anonymous said...

Maybe they can throw some of the tsunami plaza money this way.

Lino said...

This is -not- a small hospital, it occupies a square block 77-76sts -Park to Lex aves.

The fact that even this facility is facing problems is the result of 60+ years of pandering to the AMA and insurance lobbies.

Market based medicine is finally collapsing, it is bankrupting thousands each year and squeezing the juice out of the economy with high insurance costs.

If we had instead listened to Harry Truman right after the war, we would long-since have had all the necessary infrastructure in place for a reasonable public health system.

Doing so now is going to a wrenching expensive mess..but we have no choice.