CarePoint Health has signed a letter of intent with California-based KPC Global Management to acquire Christ Hospital in Jersey City and the Hoboken University Medical Center.
By John Heinis/Hudson County View
“We are excited and eager to move forward with this acquisition and expand the quality of services of healthcare for the residents of Hudson County,” KPC Global Founder and Chairman Dr. Kali Chaudhuri, MD, said in a statement.
“This potential transaction is an ideal opportunity to sustain the acute care hospitals in the CarePoint Health System,” added CarePoint CEO Dr. Achintya Moulick, MD MBA.
Through the LOI, KPC Global proposes to purchase the equity of HUMC – OPCO, LLC and Hudson Hospital – Opco, LLC – the two entities that operate Hoboken University Medical Center and Christ Hospital, CarePoint announced this evening.
This also includes the two hospitals’ affiliated physician practices and assets of CarePoint Health’s management services organization and physician practice management business that serve the two hospitals.
While both sides expect the path to a definitive deal to be reached quickly, standard approvals from regulatory bodies such as the New Jersey Department of Health are still essential.
While the transaction does not include Bayonne Medical Center, the third hospital under
CarePoint Health management, KPC Global is interested in structuring a transaction that satisfies the stakeholders at all three facilities, including its leaseholders.
Under the currently contemplated transaction, KPC Global would assume the hospital leases as is, subject to the real estate owners’ consent.
KPC Global has also expressed its willingness to partner with the current owner of Bayonne Medical Center, CarePoint, and whoever the future owner may be.
Building on its foundation in Southern California and in six other states, KPC Global views this acquisition as an opportunity to continue its current growth strategy.
CarePoint Health would be the first of many partners in the region as KPC Global continues to grow across the United States. KPC Global and CarePoint have discussed plans to build and expand clinical services at their facilities.
Those plans include a stroke center, advanced heart care unit, center for sports medicine, obesity center, center for heart burn, metabolic diseases center, spine center, and center for robotics.
Back on June 2nd, CarePoint announced a deal with BMC Hospital LLC to acquire their Bayonne facility, but that came just moments before Hudson Regional Hospital said they acquired the property at HUMC and the BMC for $220 million.
Additionally, BMC Hospital acquired a minority ownership of the BMC from CarePoint last month.
Both sides have unsuccessfully appealed to the NJ DOH on several occasions to no avail as they continue to engage in trading punches every so often.