Gov. David Paterson gave cash-strapped St. Vincent's hospital its second infusion on money in a week, yesterday agreeing to provide $6 million in emergency funding to keep the doors open.
St. Vincent's is carrying $700 million in debt. The iconic West Village institution had needed $6 million from the State and $2 million more from a key creditor this week just to make its payroll for the month. Last week, the state and the hospital's main creditors gave it an $8million loan.
It's looking for a partner to prevent bankruptcy or closure.
Paterson said management and unions will have to agree to a massive restructuring for St. Vincent's -- which is losing $5 million to $10 million a month -- to survive.
In a statement, Paterson said that saving St. Vincent’s would require “shared sacrifice,” adding: “We believe this assistance, if combined with assistance from the sponsors, concessions from the unions, management and physicians, cost-cutting actions and aggressive cash management will allow St. Vincent’s Medical Center the time needed to develop short-term and long-term plans for the future.”
Sources told The New York Post that St. Vincent's would have to shrink to 150 beds from the current 440.
Continuum Health Partners has expressed interest as a partner for the hospital. But plans to shut St. Vincent's emergency room and inpatient units has triggered opposition.