Why St Vincent Hospital in NEW YORK closed due to budgetting issues Essay - 1

Why St Vincent Hospital in NEW YORK closed due to budgetting issues - Essay Example In 2010, St Vincent Medical Center closed its doors. St. Vincents Hospital was a nonprofit charity-funded hospital in New York which provides, according to hospital mission, complete general acute health care services inclusive of medical, surgical, psychiatric inpatient, emergency care and other outpatient services. St Vincent’s represented an iconic place for being one of the third oldest hospitals in New York and for sharing so much historical events. It has treated victims of calamities: the cholera epidemic of 1849, the sinking of the Titanic in 1912, the 9/11 attack and, just few years , the Hudson River landing of US Airways Flight 1549. Creating a budget is often one of the most challenging tasks when creating a nonprofit organization. A budget is the expression, in financial terms, of the plan of operation designed to achieve the objectives of an organization. It lays out where the money is coming from and where it is intended to be expensed. There are many reasons why St Vincent’s Hospital should have had a stringent budget in place - including its obligation to spend conscientiously as it was somebody else’s money - and very few for it to have inefficiency in this practice. Why it chose the latter is anybody’s guess. Or maybe there is more to the story. St. Vincent’s has a long history of financial troubles dating back far before the problems of the last few months came to light. It filed for Chapter 11 in 2005 and emerged from bankruptcy in 2007. One would have thought the troubles were over: Far from it actually. By the time 2010 rolled in, it was $700 million in debt and losing $10 million a month. The lucrative location of the hospital – on the West Side of Manhattan on 59th Street – could not save it. After closings its doors in 2010, St Vincent is survived by 3,500 jobless employees and more than 200,000 New Yorkers who do not have