New York Governor David Paterson has agreed to a second state loan to financially struggling St. Vincent’s Hospital in New York City. The $3 million loan follows an $8 million loan from the state and the hospital’s main creditors, GE Capital and TD Bank, The New York Times reports. The hospital’s creditors will also put up $3 million to help keep the hospital open in spite of its $700 million debt.

According to the article, the 160-year-old hospital in Greenwich Village has stopped accepting new outpatients to its HIV and community health programs.

Paterson said that saving St. Vincent’s would require “shared sacrifice,” adding: “We believe this assistance, if combined with assistance from the sponsors, concessions from the unions, management and physicians, cost-cutting actions and aggressive cash management will allow St. Vincent’s Medical Center the time needed to develop short-term and long-term plans for the future.”

A New York City hospital system called Continuum Health Partners offered to take over St. Vincent’s. Continuum said it would retain the hospital’s well-known HIV and psychiatric services, but many health care advocates feared that many of the hospital’s programs, including emergency care, would be compromised.