The deficit was in the low 1 millions if I remmeber correctly. This won't break the back of a large hospital like Mt. Sinai. In fact, they were not recommended to close or merge like many other hospitals in NY state were. But with that said, I don't doubt that there will be some form of trickle down effect. It becomes hard for the hospital to build new facilities and it also forces the hospital to close or trim down departments that are not lucrative, which limits the scope of the patients you will see. I imagine top researchers will also wnat to stay away, which might cause the Hospital to lose grant money, which will make them slip in the rankings. I know that when my company consulted for Mt. Sinai, they recommended reducing compensation for doctors and shortening their teaching hours... whether or not that actually happened I don't know. Most effects, if any at all will be long term effects, and with several hospitals closing / consolidating in the NYC area, Mt. Sinai and other hospitals should have more bargaining power with MCOs to negotiate better rates and temporarily raise their revenues. And I am sure there are tons of people working to figure out a way to make them profitable again in the future. Keep in mind top notch schools like Upenn also went through periods of unprofitability and remained very very competetive. Take all this for what you will... and maybe someone who attends mt.sinai can chime in and let us know if they've been noticing any cutbacks in education.