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NewYork-Presbyterian Files CON to Take Over New York Downtown Hospital

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NewYork-Presbyterian Hospital, the renowned academic medical center based in New York City, has submitted a certificate of need to New York's State Health Department to take over Manhattan-based New York Downtown Hospital as sole owner, according to a New York Times report.

Since 2005, New York Downtown has been an affiliate of NewYork-Presbyterian. Steven Corwin, MD, CEO of NewYork-Presbyterian, told WNYC the system wants to take on the financially struggling New York Downtown in order to keep care and services within the local lower Manhattan community.

According to the CON (pdf), NewYork-Presbyterian will acquire the 180-bed New York Downtown and certify it as a new division of the health system. New York Downtown has suffered large operational losses from 2009 to last year, and it is "projected to have a significant operating loss in 2013, unless the current situation is changed." New York Downtown, a safety-net hospital, has experienced large reductions to Medicare and Medicaid reimbursement and has a poor commercial payor mix, according to the CON.

Struggling New York hospitals have been in the limelight as of late. Last week, officials at Long Island College Hospital in Cobble Hill, Brooklyn, said LICH may have to shutter its doors soon due to significant financial losses and a lack of patient volume. LICH is part of SUNY Downstate Medical Center, also in Brooklyn, which was recently audited. The audit found SUNY Downstate will not have enough cash to cover all its expenses by this May.

More Articles on New York Hospital Transactions:

Bankruptcy Judge Approves Montefiore Medical Center's Bid for Westchester Square Medical Center
Montefiore Medical Center to Acquire N.Y. Westchester Square Medical Center
E.J. Noble Hospital in New York Enters Management Contract With Canton-Potsdam Hospital

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