Montefiore to acquire Hudson Valley hospital

Montefiore Health System will acquire St. Luke’s Cornwall Hospital, a struggling facility in New York’s Hudson Valley.

The deal will add St. Luke’s to Montefiore’s growing health system. Montefiore, based in New York City, owns 10 hospitals, including a recently acquired hospital in Westchester, N.Y.

St. Luke’s, which has campuses in Cornwall and Newburgh, N.Y., began searching for a partner last year. The hospital has reported operating losses and working capital deficiencies since 2012, and that’s gotten the hospital into trouble with lenders. “These conditions raise substantial doubt about the hospital’s ability to continue,” the hospital’s auditors said in December and in 2013.

The hospital posted a 2014 operating loss of $7.4 million on revenue of $177.6 million. Combined with other losses, including those from investments and pensions, the system’s net loss last year totaled $21.5 million.