The facility will instead move eight blocks north to a building on West 20th Street. North Shore officials said it's slated to open in October. The original plan called for North Shore to lease and renovate St. Vincent's former emergency room.
The move will leave Greenwich Village without an acute-care facility in the immediate neighborhood.
A spokeswoman for St. Vincent's said the hospital would continue to explore all options for its unused emergency room space.
The city's last Catholic-affiliated hospital filed for bankruptcy before closing in April, citing a debt topping $1 billion dollars.