New York City’s Mount Sinai Medical Center plans to gradually close its Beth Israel campus in downtown Manhattan after years of financial losses.
(Bloomberg) — New York City’s Mount Sinai Medical Center plans to gradually close its Beth Israel campus in downtown Manhattan after years of financial losses.
Beth Israel lost $1 billion over the past decade “despite massive investments and upgrades,” spokesperson Lucia Lee said in a statement Thursday, adding that it is expected to lose $150 million this year as it operates at only 20% of capacity. She declined to give more detail on the timing of the closing but said the hospital, located on East 16th Street in Manhattan, and its emergency room will remain open as the process proceeds.
The wind-down shows that even large medical centers like Mount Sinai aren’t exempt from the pressures facing the sector, including staffing shortages and labor unrest that led to a strike at its main campus earlier this year. Hospitals had their worst year ever in 2022 as federal pandemic money ran out and they adjusted to higher expenses and a shift to more outpatient care.
Mount Sinai has been adapting to that shift. The hospital system recently opened a $140 million behavioral health facility downtown and put “tens of millions investment” in outpatient facilities elsewhere in Manhattan.
The plan won’t affect other sites under the Mount Sinai Beth Israel license, including Mount Sinai Brooklyn and Mount Sinai Behavioral Health Center.
Crain’s New York Business reported the pending closure on Wednesday.
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