New York City-based Mount Sinai Health is to close its Beth Israel campus in the city "after years of agonizing debate and analysis" and could open a smaller facility downtown in the future.
The closure will be gradual after an initial reduction of the inpatient bed count at the 696-bed teaching hospital, with the eventual shuttering expected to take a few years.
"We will remain open with a smaller bed count as we work with regulators to gradually close the 16th St. campus at MSBI and continue to evaluate various options for a smaller hospital nearby," according to a news release provided to Becker's.
Mount Sinai will offer affected unionized employees similar roles within the system.
The hospital will close despite "massive investments and upgrades" within the past 10 years. Escalating losses, with a further $150 million expected this year, and chronic underutilization with inpatient use typically at only 20 percent of capacity, have forced the issue.
"Maintaining the status quo is no longer an option," according to the news release. "As a leading non-profit institution, we must take immediate steps to preserve our ability to continue providing healthcare services to the greater New York City community."
While the hospital gradually closes, Mount Sinai Beth Israel will continue to maintain a presence in downtown New York with its new $140 million behavioral health center and other facilities.
"While we will never abandon the downtown community, continuing to keep the MSBI 16th St. hospital open would jeopardize the mission of the Mount Sinai Health System," the release concluded.