Hoboken And Jersey City Hospitals Can Be Taken Over By New Owner, Judge Says

HOBOKEN, NJ — Hospitals in Hoboken and Jersey City are getting a new owner after their parent company, CarePoint Health, declared bankruptcy.

A judge on Friday accepted an operating plan that allows the owners of Hudson Regional Hospital in Secaucus to become the owner of Hoboken University Medical Center in Hoboken and Christ Hospital in Jersey City Heights.

PAST REPORTING: Can Hoboken's Hospital Survive?

U.S. Bankruptcy Judge Kate Stickles' ruling has also alowed HRH to take over Bayonne Medical Center.

Hudson Regional Hospita's owners called the ruling by federal Bankruptcy Judge Kate Stickles "a historic decision that will ensure long-term viability of Hudson County’s health care system."

They said the ruling followed months of Hudson Regional Hospital investing milions of dollars, through Chairman Yan Moshe, into the two hospitals and Bayonne Medical Center.

Hoboken University Medical Center, at Willow Avenue and Fourth Street, was formerly St. Mary Hospital. It was founded in 1863 by Franciscan nuns to treat wounded Civil War soldiers, according to historians. Because it's located in a city and serves impoverished residents of Hudson County, the 348-bed acute care hospital has partly relied on reimbursement through Charity Care funds, leading to financial problems.

Recently, council members debated potential rehabilitation plans for the structure, including using part of the property for a residential high-rise (read more about that here.) A council majority voted down the plans, for now.

“This is a historic moment for the future of health care in Hoboken and Hudson County, as our local hospital now has new leadership with a clear track record of success,” said Mayor Ravi S. Bhalla. “Several years ago, HRH took over the Meadowlands Hospital, that, like Hoboken, was on the brink of collapse. Just a few short years later, they transformed it into a thriving hospital that is well respected and utilized by the local community."

He added, "I have no doubt that with the proper resources they will replicate that success in Hoboken and build a thriving, quality healthcare system for our community. I look forward to working with the leadership at HRH in the weeks and months ahead to ensure that residents have the high-performing healthcare option that they deserve.”

Hudson County is also served by two other hospitals with different owners: Palisades Medical Center in North Bergen, and Jersey City Medical Center.

“This is a threshold moment for Hudson County, as Hudson Regional Hospital can finally realize its vision of high-performing healthcare network with esteemed services and financial stability,” said Yan Moshe, chairman of Hudson Regional Hospital. “We see a vibrant opportunity tosubstantially modernize facilities and practices in each location."

Each of the hospitals will now be operated by an affiliated property owner.

“We fully recognize that services can, and must be improved at all three facilities,” said Dr. Nizar Kifaieh, President and CEO of Hudson Regional Hospital. “Our goal is simple: we want residents of all three communities as well as the surrounding area to have confidence in their community hospital."

Hudson Regional expects to rebrand the system and transform each of the former CarePoint facilities. They said that Bayonne Medical Center is already remodeled departments and labs, as well as revived and new programs.

In November, Yan Moshe, the owner of the Secaucus hospital, announced he was going to assume ownership of Bayonne Medical Center.

Those three hospitals serve more than 60 percent of the population in Hudson County, and 65 percent of their patients are uninsured or underinsured.

CarePoint declared bankruptcy in November, after it told the state it needed a $100-million bailout to continue operations.

Other Mayors Weigh In

Jersey City Mayor Steve Fulop this week also gave his support to the move.

“From the start of this process, my objective has been to ensure that residents of Jersey City and Hudson County have access to quality health care," he said. "I am confident that Friday’s court ruling is a critical step toward achieving this objective ... There is no doubt that even more transformative improvements are on the horizon.”

Mayor Mike Gonnelli of Secaucus said, “In Secaucus, our community hospital slowly declined for a decade before Hudson Regional transformed the facility and the healthcare services, achieving far more than we ever expected. We are confident that there will be additional benefits of having a stable health care network.”

Hudson Regional said that they will "continue to update the public on all developments and the continued implementation of the new county-wide health network including improvements and upgrades to services at each of the facilities."

Prior Reporting

• Secaucus Hospital Owner Fights To Buy Bayonne, Hoboken Hospitals
• Secaucus Hospital Fired Me Once I Ended Affair With CEO, Woman Says