Facing debts of more than $200 million, Mount Sinai Beth Israel hospital in Lower Manhattan will shutter and re-create itself as a much smaller facility, The Wall Street Journal writes. The downsizing, which follows several hospital closures in downtown and Brooklyn in recent years, is part of a $550 million plan by Mount Sinai Beth Israel’s nonprofit owner, Mount Sinai Health System, to adapt to a changing health-care industry focused more on outpatient care.
Beth Israel, founded in 1889 and acquired by Mount Sinai in 2013, will sell its 16th Street property, valued at about $600 million. Officials say the roughly 825-bed hospital is typically less than 60 percent full. Mount Sinai plans to open a 70-bed hospital and emergency room two blocks from the current facility.
John Rowe, a Columbia University public-health professor and former Mount Sinai executive, said the plan makes sense for the organization. “They leave behind a large, antiquated, money-losing hospital, but they maintain their meaningful presence in a Manhattan market,” he said.