St. Vincent Catholic health system files for bankruptcy in New York

Published: 2005-07-07

NEW YORK (CNS) -- St. Vincent Catholic Medical Centers, the largest Catholic provider of health care in New York state, announced July 5 that it was filing for Chapter 11 bankruptcy. A news release said the St. Vincent system expected the filing in the U.S. Bankruptcy Court for the Southern District of New York would give it "time and means to restructure its debt, operations and finances to continue its mission of Catholic health care in New York." Although a "turnaround initiative" has helped bring expenses and revenues more nearly balanced, an "overwhelming debt" and a "severe liquidity crisis" this year led to the bankruptcy decision, the release said. But it said St. Vincent expected to continue normal operations during the bankruptcy proceedings and emerge as "a more efficient, financially sound health care system." The system is sponsored by the Diocese of Brooklyn and the Sisters of Charity of St. Vincent de Paul, whose motherhouse is in the Bronx.

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