The Dormitory Authority of the State of New York could sell bonds to refinance the troubled St. Vincent’s Hospital’s debt, according to a spokesman for Congressman Jerrold Nadler, D-Manhattan.
“Yes, DASNY [selling bonds] is among the proposals that are on the table,” Nadler spokesman Ilan Kayatsky said in an e-mail.
Nadler and U.S. Senators Charles Schumer and Kirsten Gillibrand yesterday called on the Department of Housing and Urban Development Secretary Shaun Donovan to assist the downtown Manhattan hospital that is reportedly on the verge of bankruptcy. A proposal from Continuum Health Partners Inc. to take over St. Vincent’s would close much of the hospital, including its emergency room.
“Closing St. Vincent’s emergency room and Level 1 trauma center would be devastating to the local community, and in the event of a catastrophe, would hamstring the city’s ability to cope,” the lawmakers wrote in a letter to Donovan. The lawmakers asked the HUD secretary to look into using the Federal Housing Administration mortgage insurance programs as a potential way to help the hospital with its financial troubles.
DASNY has issued bonds for hospitals using FHA mortgage insurance in the past. A spokesman said yesterday that he was unaware of any discussions regarding the authority potentially issuing bonds on behalf of St. Vincent’s.
