CarePoint Health filed Chapter 11 bankruptcy yesterday in U.S. Bankruptcy Court for the District of Delaware as part of their financial restructuring plan to help secure $67 million in financing that will ensure their hospitals stay open.
By John Heinis/Hudson County View
“We chose this path after we thoroughly evaluated all available options that would ensure the continued delivery of uninterrupted care while enabling this necessary financial restructuring,” CarePoint CEO and Board Chair Dr. Achintya Moulick said in a statement.
“Safety net hospitals like Christ Hospital and Hoboken University Medical Center are vital lifelines for the uninsured, underinsured, and most vulnerable populations. We are proud to have kept our doors open these past five years despite an extremely challenging environment. We are also grateful for our employees and physicians across the organization, whose deep commitment to addressing health inequities and delivering high-quality, compassionate care to our communities has been unwavering.”
The move is completely expected for those following along since September, when the CarePoint board began discussing financial restructuring moves that included filing for Chapter 11 bankruptcy, as HCV first reported.
The move was also telegraphed just ahead of Hudson Regional Hospital reaching a deal with CarePoint to run their four hospitals last week under the Hudson Health System banner, a concept that was first unsuccessfully attempted in January.
CarePoint officials said today that several factors led to this decision, including the dramatic increase in direct costs of operating the hospitals after COVID, insufficient state funding, and persistent reimbursement challenges that have plagued hospitals nationwide.
“It is impossible to understate Dr. Moulick’s contributions to the CarePoint healthcare system and the Hudson County community. Had it not been for his leadership over the past five years, the hospitals likely would have been forced to close, depriving our communities of access to essential and life-saving care,” Alliance Community Healthcare CEO Marilyn Cintron.
“While there are still challenges ahead, CarePoint’s ability to facilitate this necessary financial restructuring and remain open to serve patients is a testament to his vision and fortitude. We are confident that his leadership through this next chapter as Chairman of the Board of Trustees will finally put the hospitals in a sustainable position to continue delivering high quality care.”
Jersey City Mayor Steven Fulop and Hoboken Mayor Ravi Bhalla, both CarePoint board members who voted for the HHS plan, predictably applauded the move.
“I am confident that this is the right direction and that it will put these essential community hospitals on more solid financial footing moving forward, which is critically important for Hudson County,” Fulop said, emphasizing that this will keep Christ Hospital and the Hoboken University Medical Center open.
“This restructuring is a critical step in the right direction to ensure the finances are now aligned to offer continued, quality healthcare to Hoboken with Hudson Health Systems leading the way. It is welcome news for residents of Hoboken and Hudson County as we were able to ensure that a hospital continues to remain right here in our Mile Square,” Bhalla added.
The Bayonne Medical Center never appeared to be in serious jeopardy of closing, though it was originally going to be run by Insight Health, but that all changed when CEO Dr. Jawad Shah – who was also the CarePoint CEO briefly – abruptly resigned last Sunday.
Prediction – Luxury condos
Guess the answer is to bring more illegals to Hudson County so they can bankrupt everything.
Thanks Biden & Harris puppet masters.
Three hospitals four counting jersey city medical centerall that close is not necessary, st. Francis closed didn’t cause any issues. It would be smarter and more cost effective if one closed and workers absorbed in the other two