In 1961 a major addition was constructed, which raised capacity to 142 beds, including 20 bassinets for newborns.

It was the sixth in a series of arsons in town that included fires in three schools and one church.

The following month the Bank filed a Petition for Authority to Foreclose in Essex County Superior Court.

On August 30, the Public Health Department asked the hospital not to admit any new patients, perform any non-emergency surgeries, and discontinue emergency operations due to numerous deficiencies, including deficiencies in the hospital's nursing care.

[2] The property was sold to HMS Fund Inc. for $9,000 (plus $116,000 in tax and water liens) at a public auction.