Budget Shortfalls Might Force 2 New York City Hospitals To Close By February

January 14, 2009 8:09 a.m. EST

New York, NY (AHN) - Budget shortfalls that are affecting the hospital industry in general might force the closure of two private hospitals in New York City's Queens neighborhood that have needed millions of dollars in state subsidies to help them meet payrolls.

But with the state facing a budget shortfall of $15 billion, it is less likely that the state can afford to help struggling hospitals with little chance of becoming financially viable.

St. John's Queens in Elmhurst and Mary Immaculate in Jamaica are reportedly considering bankruptcy and possible closure by February.

On Tuesday, Helen M. Marshall, the Queens borough president, spoke of her concern about the ailing hospitals in her State of the Borough address. Marshall also said she had asked the governor for help.

New York State government has given the two hospitals about $44 million in loans and grants over the past two years, the hospitals have experienced financial problems since 2005. The two hospitals have a combined 400 beds and employ 3,000 people.

Hospitals around the nation are struggling. Hospital associations in Tennessee and some other nearby states have recently said they are planning layoffs to cope with budget shortfalls.