In a week or so, North General Hospital, facing bankruptcy, will undergo yet another transition after an agreement was arranged between the city and state.

Co-founded in 1979 by the late and venerable Eugene McCabe, North General replaced the Hospital for Joint Diseases when it moved from Madison Avenue and 124th Street. Now, North General is slated to become a federally qualified health care (FQHC) facility. Unlike the fate of St. Vincent’s Hospital that closed after filing bankruptcy two months ago, North General’s new life will include several clinics at the site almost immediately.

Since its inception, North General was operating at a deficit, according to the Rev. Calvin O. Butts III, pastor of Abyssinian Baptist Church and chairman of the hospital’s board. He told the New York Times that the hospital was about $200 million in debt. “The hospital opened on borrowed money,” he said, and there was no way it could continue under those circumstances.

Under the administration of the Institute for Family Health, a Manhattan-based community center network, the facility will be expanded and complemented by a nursing unit and a new, long-term acute health care facility, operated by the NYC Health and Hospitals Corporation.

Governor David Paterson, Mayor Michael Bloomberg and Congressman Charles Rangel were cited as the orchestrators of the deal.

“This announcement is great news not just for people in Upper Manhattan, but for all those who care about health care access,” said Rangel in a statement from his office and referring to the new arrangements. “Thanks to the hard work of so many, we have been able to leverage available federal, state and city resources to ensure that health care delivery is maintained and expanded in our community.”

Paterson, offering his endorsement of the plan, also placed the facility in historical context. “Thirty years ago, North General Hospital was a pioneer in the health care industry–a private hospital opening while public hospitals were failing. However, with the hard work, determination and the vision of Eugene McCabe, Randolph Guggenheimer and the entire Harlem community, North General became a key resource for health care,” he said. “Today’s announcement will reinvent that vision by allowing North General to be a pioneer once again and continue to provide for the health care needs of Harlem.”

Primary care at the new facility will be financed by grants and Medicaid. Mental health, dental care and services for some 80,000 children are among the plans promised, according to state officials.

“North General Hospital and its facilities will continue to house critical health care services for the Harlem community and all of New York City,” the mayor said. “The relocation of some of the city’s long-term care services to Harlem will ensure a continuing, vibrant health care presence there while simultaneously improving the New York City Health and Hospital Corporation’s long-term care facilities.”

Neil Calman, M.D., president and CEO of the Institute for Family Health, which will operate the FQHC, said: “It is a privilege to be asked by Reverend Butts and the board of North General to develop an FQHC in this historic community. We are honored to have the support of Governor Paterson and the New York State Department of Health, as well as the U.S. Department of Health and Human Services. We look forward to offering our patients a new level of care, supported by the latest technology, in their new medical home.”

Given the partners in the revision of North General, everything seems to be in place to ensure ongoing, quality health care. “This transformation is a vote of confidence for improved health care for the community,” said State Health Commissioner Dr. Richard Daines.

Paul Williams of the Dormitory Authority of New York was in perfect accord with the new developments. “DASNY has participated in workout solutions for troubled hospitals before,” he said. “As a partner with Governor Paterson, the Department of Health and North General’s board, we will all work with the local community, elected representatives and stakeholders to maintain health care, economic development and community services for the residents of Harlem consistent with our obligations to bondholders.”