Hoboken University Medical Center Proposes Draft Budget For 2010

The Assumption Hall at the Hoboken University Medical Center was filled to capacity Wednesday evening during the Hoboken Municipal Hospital Authority meeting of the year.  

Two important issues discussed during the meeting were the 2010 budget for the hospital and the conclusion of a state memo reporting the hospital will close in a few months. 

"I want to say unequivocally and to everybody," CEO of the hospital Spiros Hatiras said, "We are not closing." 

A draft 2010 budget has been completed by the Finance Committee and was presented to the rest of the board yesterday. No copies were available for news media yet. 

The hospital saved $11.5 million and received $6 million in stabilization money from the state to go towards the current budget. In total HUMC received a $7 million stabilization grant, but $1 million went toward last year's budget. As of now, HUMC has received $2 million in stabilization money. 

Part of the $11.5 million in concessions is a 10 percent pay cut for hospital employees. 

The draft also shows that the hospital's 2009 deficit is $2.8 million. (income: $89.4 million and costs: $92.2). 

In total the hospital had a turnaround of $17.5 (11.5 + 6) million, Hatiras said, while the hospital lost $12.5 million—roughly half of what it lost the year prior. 

At the end of the day, the hospital is expecting $3.6 million in excess, Hatiras said. Part of that money will be used to invest in elevators for the hospital.

Although the hospital had significant losses, the amount was about 50 percent of what it was in the previous year, according to the finance committee's report.

Other topics discussed were the amount of discharges, Emergency Room visits and admissions. The Emergency Room, which was opened in June and has seen roughly 4,300 visits since, was praised by the board members. 

And although it was too early to see if this increase in ER visits—as opposed to admissions in other parts of the hospital—is a real trend, Chairman Kevin Kramer called it "positive news."  

Although the finance committee, the CEO and other members of the Municipal Hoboken Authority listed numbers, ratings and positive news about the hospital, the memory of the state memorandum to Gov. Chris Christie is still fresh. And Hatiras acknowledged this. 

"We need two to three months of good PR work and performance to erase this from our memory," he said.  

Hatiras tried to assure those who attended the meeting that everything was fine.

"We're here to stay," Hatiras said. "We have a good plan for 2010."

After the public portion of the meeting, the board went into an executive session.