The Rev. Calvin O. Butts III, chairman of NGH’s board and pastor of Abyssinian Baptist Church in Harlem, says in a statement that the agreement “was not easy to achieve, but it underscores the good will and creativity that exists at state, federal, city, local and community levels, both public and private.” Butts adds that although it’s saddening to face “closing the doors of a hospital that’s been an integral part of our neighborhood for 30 years,” it’s nonetheless “an opportunity to not only continue to use the North General facility to maintain the health of the people of this community, but also as a way to allow the facility to continue to be an economic asset to the Harlem community.”

NGH’s decline has occurred over several years as both patient admissions and payer reimbursements have slipped. Founded in 1979, it has billed itself for many years as the state’s only minority-operated private hospital. It moved into a new facility at 1879 Madison Ave. in 1991, built at a cost of $488 million.

As the new century got under way, however, the 190-bed hospital suffered from mounting financial losses, in common with a number of other private institutions across the US. In October 2008, Crain’s New York Business reported that NGH had fallen more than $13 million behind in payments on $138 million owed to the Dormitory Authority of the State of New York and was “near bankruptcy.” The agreement announced Monday came after 12 months of negotiations between NGH’s board, DASNY, the New York State Department of Health and the city.