It looks like a deal for Yeshiva University to hand over control of its Albert Einstein College of Medicine to healthcare giant Montefiore is floundering.
A Yeshiva University spokesman said that the two institutions were, “unable to agree on certain material terms.” Under the originally proposed agreement Montefiore would have taken over financial responsibilities for the Bronx hospital while YU would have continued to serve as the academic institution running its medical school and other degree programs.
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The school has been desperate to raise funds recently, selling off many of its New York real estate assets.
In a statement YU said, “The University is keeping all options on the table to ensure a secure future of excellence for Einstein and the entire university. We believe our financial outlook allows us to meet the goal of responsibly achieving financial stability over the next three years. Yeshiva University remains a vibrant organization where its students will continue to receive a world-class education.”
“While we have been unable to reach agreement at this time with Yeshiva University, we remain deeply connected to Einstein, ” a Montefiore spokesman said.
Montefiore reportedly would have taken on about $100 million of Yeshiva University’s estimates $150 million in debt as part of the deal.
A report by Moody’s on YU’s financial status sites the deal falling through as a major cause for concern. “Termination of the Memorandum of Understanding with Montefiore Medical Center contributes to uncertainty over the operation of the medical school. Since Yeshiva delayed implementing significant expense reductions at the medical school (responsible for two-thirds of the deficit) during the six months of negotiations, acute losses have continued, ” said Moody’s.