Already a presence in Queens, Brooklyn, and Staten Island, one of the state's largest hospital systems is now making its way into Manhattan. But in doing that it's taking on one financially strapped hospital and trying to resurrect health services where the failed St. Vincent's has left a gaping hole in the West Village. NY1's Kafi Drexel filed the following report.

With two Manhattan hospitals, St. Vincent's and then North General, closing within just a matter of months of each other, you might wonder why anyone would decide to run another that's been struggling. But that's just exactly what Michael Dowling, president and CEO of North Shore-Long Island Jewish Health System, chose to do in tacking Lenox Hill on to his now 15-hospital network. But where some only saw risk, he saw opportunity.

"The fundamentals at Lenox are just very strong. It is a good hospital. Very loyal physicians and very good physicians. They see about 350,000 patients a year. It's emergency department is nationally recognized," says Dowling.

Lenox Hill, which finished $10 million in the red last year, had already taken some proactive steps in getting back on track.

"Lenox Hill is a lot stronger financially than many people might recognize. We've not had to curtail any of our services, but to our credit we are looking to the future," says Lenox Hill Chief Administrative Officer and Executive Vice President Phil Rosenthal.

Experts within the industry say with health reform there's bound to be a lot more consolidation.

"Attaching yourself to a large system really gives you more potential for taking advantage of some of the things like accountable care organizations and payment incentives. I think it just broadens your ability to be innovative and to succeed in this climate," says New York State Health Foundation President & CEO Dr. James Knickman.

The root of Dowling's plans means making things more efficient including updating technology and an electronic health record system. For example, emergency room doctors at Lenox Hill are already electronically keeping track of patients. Soon enough, the entire hospital will be looped into North Shore LIJ's system.

North Shore is also in charge of getting an urgent care facility up and running in place of St. Vincent's Hospital since Lenox Hill was awarded the responsibility. Dowling was hoping to have it in place by August. But the ideal spot, St. Vincent's old emergency department, is still tied up in bankruptcy court.

"What we're doing at the moment is trying to negotiate the opportunity to take on that space. Since it's part of the bankruptcy situation its unbelievably complicated," says Dowling.

Dowling has been looking at other West Village locations, including St. Vincent's O'Toole building across the street from the former hospital's main campus. But that building's fate is also on hold due to bankruptcy.

At the rate things are going, Dowling says the West Side may be without a new facility until some point this fall.