Interfaith Medical Center in Brooklyn has filed for Chapter 11 bankruptcy. The hospital serves Crown Heights and Bedford Stuyvesant and said revenue dropped following cuts to the Medicaid rate in 2010.
The hospital, which has had a history of financial setbacks, said 65 percent of its patients rely on Medicaid, making state cuts that much more difficult.
"Despite our hard work to reduce costs, it became impossible to continue to operate under those rate reductions without an operating loss," said hospital president and CEO Luis Hernandez in a statement.
The hospital said the filing will allow it to restructure.
Judy Wessler, director of the Commission on the Public Health System, said it's a shame the hospital was forced to file for bankruptcy.
"This is a needed facility in their community," she said. "Central Brooklyn has already lost health services and can't afford to lose more."