Budget problems, state law close hospital

St. Clare's Hospital in Schenectady has announced that it will soon close, reducing the number of Catholic hospitals in the Albany Diocese from four to three.

The decision was made in light of budgetary problems at the nearly 60-year-old institution and pressure from a state law seeking to streamline health care throughout New York.

St. Clare's, established in 1949, will cease to be a Catholic hospital as its programs and services are integrated into nearby Ellis Hospital over the next several months.

Bishops' reaction

Bishop Howard J. Hubbard reacted to the decision by crediting St. Clare's for providing "excellent and compassionate care to all who sought it. The talented and dedicated physicians, nurses, staff, management, volunteers and friends of St. Clare's have quietly carried out a heroic ministry of healing and hope for the people of Schenectady, especially for many of the community's most vulnerable people -- the very young and old, the poor, the homeless, the powerless."

He said he regretted the necessity of the closing, but added that he was "gratified that an agreement has been worked out to address St. Clare's employee pension and other outstanding financial obligations."

The New York State Health Department will provide $50 million to the two hospitals, including $28.5 million to help St. Clare's meet pension obligations and $21.5 million to help cover costs related to St. Clare's debt.

Commission

Last year, the State Legislature enacted into law recommendations of the Berger Commission that required St. Clare's and Ellis to create a single governing body by the end of 2007.

For more than a year, discussions and meetings have been ongoing between the two hospitals.

Leaders of the hospitals determined that, in light of the serious, long-term financial challenges facing hospitals generally, it made more sense to consolidate the programs and services of the two hospitals into a single institution.

Ellis anticipates offering employment opportunities to many members of the St. Clare's staff.

'Bittersweet'

"This is a bittersweet moment for the loyal staff and supporters of St. Clare's, who have worked so hard to preserve the mission of this hospital," said Robert Perry, president of St. Clare's. But, he continued, "the sad reality is that St. Clare's could not continue to care for the poor and uninsured of Schenectady without quickly running out of money to pay our employees and our bills.

"We are pleased and relieved that we were able to work out an agreement to meet our pension and other financial obligations, and to ensure that the essential community health services that St. Clare's has provided to our community will be continued."

(The remaining three Catholic hospitals in the Diocese are St. Peter's in Albany, St. Mary's in Troy and St. Mary's in Amsterdam.)

(01/24/08)