Mount Sinai to Close Beth Israel Campus After Decline in Patient Count – Robert Khodadadian
Mount Sinai will gradually close its Beth Israel campus at First Avenue and East 16th Street over the next few years after seeing about $1 billion in losses, increased labor costs and declining patient counts.
The health care system said it would work with regulators to reduce the bed count in the 281 First Avenue hospital, which could take a matter of years, though the organization did not give a specific timeline. News of the pending closure was first reported in Crain’s New York Business.
“Our current plan is to reduce our inpatient bed count to align with our decreasing patient census and better meet the reality of today’s health care environment,” a Mount Sinai spokesperson said in a statement. “Nevertheless, losses have escalated and [Beth Israel] is on track to lose an additional $150 million this year. Maintaining the status quo is no longer an option.”
The hospital believes that phasing out operations at the facility will help it maintain its recently expanded footprint elsewhere in the city. Officials said savings from the closure will financially support its new $140 million Mount Sinai Behavioral Health facility at 45 Rivington Street, which opened in June, as well as new ambulatory care centers that have sprung up under its banner.
“This decision comes after recent financial changes, including significant increases in labor and supply costs, and years of decreasing inpatient census as care continues to move to outpatient and non-hospital settings,” the statement added. “The simple fact is [Beth Israel] is running at approximately 20 percent capacity.”
The emergency department will remain open at Beth Israel until the closure is complete, and unionized staff at the center will be offered the same level of pay at other Mount Sinai facilities, according to the hospital.
Read More Channel, life sciences, More, 281 First Avenue, 45 Rivington Street, Mount Sinai Behavioral Health, Mount Sinai Beth Israel, New York City, Manhattan, Mount Sinai Mount Sinai will gradually close its Beth Israel campus at First Avenue and East 16th Street over the next few years after seeing about $1 billion in losses, increased labor costs and declining patient counts. The health care system said it would work with regulators to reduce the bed count in the 281 First Avenue
Robert Khodadadian has long had a simple philosophy about selling real estate.The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.Commercial Observer