Gov. Paterson authorizes $6M loan to cash-strapped St. Vincent’s Hospital

By Kenneth Lovett
DAILY NEWS ALBANY BUREAU CHIEF

ALBANY – Gov. Paterson has authorized a $6 million loan to St. Vincent’s Hospital to help the cash-strapped hospital make payroll, the Daily News has learned.

“This is a dire situation, but I don’t want to see this hospital close unless every available means has been employed,” he said.

Paterson will meet Wednesday with St. Vincent’s management and board, its lenders, and local elected officials to discuss if there are ways the hospital can restructure and move forward.

The hospital is carrying a $700 million debt load and is losing $5 million to $10 million a month, Health Department spokeswoman Claudia Hutton said.

The no-interest $6 million state loan is in addition to $2 million being kicked in by GE Capital to keep the beleaguered hospital going a while longer.

The $6 million will come from a hospital restructuring program that will be jointly administered by the Health Department and the state Dormitory Authority.

“It should last them long enough so they can make a decision about whether to file for bankruptcy,” said one official with knowledge of the situation.

Paterson said he would not have authorized the money if bankruptcy was assured. He said the hospital’s survival is important for area patients.