A deal is in the works to transfer day-to-day operations and financial management of Albert Einstein College of Medicine in Morris Park from Yeshiva University to healthcare giant Montefiore.
Yeshiva has dealt with mounting debt in recent years and has been freezing salaries and selling off buildings in Manhattan in an attempt to keep its finances out of the red.
The cash-strapped university announced in 2008 that it lost $ 110 million in the Ponzi scheme run by Bernie Madoff.
Yeshiva’s reputation took a hit five years later when 34 former students of Yeshiva’s high school alleged they were sexually abused years earlier by school staffers. A federal judge dismissed their $ 680 million lawsuit in January.
Last year, $ 43 million of Yeshiva’s $ 64 million operating deficit was attributable to the medical school, according to The Forward , which was first to report the desperate measure.
“(W)e are taking a powerful and important step towards building a financially sustainable Yeshiva University,” the institution’s president Richard Joel said in a statement about the move.
Fears of workforce reductions quickly spread through the Morris Park Ave. campus in response to the announcement.
An Einstein employee told the Daily News Wednesday that layoffs were expected; last month, longtime employees were offered severance packages.
Under the deal, Yeshiva would remain the degree-granting institution and play “a key role in the educational aspects of the entity,” according to a Montefiore representative.
“This agreement marks an important milestone for the future of each of our institutions as well as for healthcare as a whole,” said Dr. Steven Safyer, president and CEO, Montefiore.