While the West Village was still reeling from losing its only neighborhood hospital, the Harlem community was devastated when its North General Hospital shut down and its clinics were handed over to the Institute for Family Health.

“We are extremely saddened and disappointed with the … closure of North General Hospital,” the hospital’s union SEIU 1199 said in a statement. “On the heels of St. Vincent’s Hospital, the closure of yet another acute care facility two months later is the regrettable result of continued and repeated cuts to health care funding.”


As a result of the North General closure, a battle between two unions has ensued. SEIU 1199 employees have been ousted from their positions unless they saddled up with IFH’s union, OPEIU Local 153, sending former North General employees to the picket lines.

“The patients identify with us because we’re the people they have seen throughout the years,” says former employee Mullin Davis, as she pickets against the new management. “The impact of this hospital closing is, ‘Where am I going to get care? What’s there for me?’”

The American Hospital Association recognizes the negative effects a bankrupt and closing hospital have on a community.

“Hospitals are the cornerstone of any community, and when a hospital is faced with financial difficulties, it impacts everyone,” said Matthew Fenwick, AHA’s associate director of media relations, in an e-mail to DOTmed News. “Given the recent economic downturn, many hospitals have faced tough financial decisions about how to keep their doors open to the community. At the worst, those in need can be denied vital services, and at a minimum, face a disruption to their case.”

The Greater New York Hospital Association declined to comment for this article.

Making back the money
Whether a hospital merely files for bankruptcy or eventually closes its doors, there is the issue of paying back creditors, lenders and vendors. But if a hospital closes its doors, it will choose to sell -off assets to pay back its debt. When hospitals are racing against the clock, auctions are a common option to sell assets and make back a nice chunk of change.

DOTmed.com, the parent company of DOTmed Business News offers online auction services. Rick McDaniel, auction manager for the company, says even if hospitals need to liquidate their assets immediately, auctions are a good way to get more money.

“It’s a factor of time and exposure,” he says. “Based on that, we can get the most value [for the assets] because we’re not liquidators. We auction the equipment in partnership with the hospital, instead of buying low to sell high.”

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