FOR RELEASE: Immediate, Tuesday, December 10, 2002

Governor Announces Loans to 2 NYC Hospitals

Governor George E. Pataki today announced that St. Clare�s Hospital in Manhattan and Brooklyn Hospital would receive a total of $8.4 million in interest-free loans from the State�s Health Care Restructuring Pool.

The Pool was created by the historic Health Care Reform Act to help hospitals strengthen their financial viability and ensure access to high-quality health care for New York City families. Pool funding is used to assist financially troubled hospitals in making a successful transition into New York's competitive managed care service delivery environment. Since 1996, more than $100 million has been provided to health care facilities statewide under the Governor's historic Health Care Reform Act.

"Both St. Clare's Hospital and Brooklyn Hospital are critical providers of health care services to thousands of families in New York City," Governor Pataki said. "This financial support will further strengthen the financial viability of both hospitals while helping to ensure access to high quality health care for the local community."

St. Clare's Hospital will receive approximately $5.4 million in loans to assist in its proposed merger with St. Vincent's Medical Center in Manhattan and further strengthen its financial stability.

Brooklyn Hospital will receive $3 million in loans to assist with its financial turnaround plans, which will include significant reductions in operating expenses.

Dormitory Authority Executive Director Maryanne Gridley said, "The Governor's Health Care Reform Act has provided resources to help hospitals adjust to the changing health care marketplace. His leadership in ensuring that these funds are available has helped hospitals implement changes to compete more effectively, further strengthening our health care system."

State Health Commissioner Antonia C. Novello, M.D., M.P.H., Dr.P.H., said, "Thanks to Governor Pataki's leadership, New York has the best hospitals and the best health care system in the nation. The funding provided today to these New York City health care facilities will ensure the continuation of the hospitals financial viability as well as, and most important, the vital health care services they provide to the families in the City."

The Department of Health and the Dormitory Authority administer the Restructuring Pool. The Authority provides low-cost financing and project management services for capital construction projects at hospitals, nursing homes and other health care facilities across the State, as well as for higher education institutions, court facilities and other non-profit customers.

For more information, contact Press Officer Claudia Hutton at (518) 257 3382, or CHutton@dasny.org.

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