Assemblyman Nick Chiaravalloti (D-31) is “shocked and angry” over the state Commission of Investigation’s findings that CarePoint Health’s owners received $157 million in management fees from their Hudson County hospitals, calling for more oversight.
“I have read and re-read the article concerning the owners of CarePoint setting up a shell
company to syphon an estimated $157 million from their hospitals in Hudson County Like
anyone else who read that story, I am shocked and angry. For that reason, I prefer to stay
focused on the facts rather than react emotionally to this explosive story,” he began in a statement.
The assemblyman stressed that despite the unflattering findings, he still has a lot of respect for the doctors, nurses, volunteers and other staff at the CarePoint facilities, also commending them for bailing out the Bayonne hospital out of bankruptcy.
Also noting that the organization has been a good community partner, he still called on the New Jersey Department of Health needs to provide better oversight guidelines for healthcare providers.
“After reading the SCI report, it is clear that although these actions are legal, they are also an egregious breach of public trust. This should not be allowed to occur. The SCI recommendations are a good start, but I am not sure they go far enough,” he exclaimed.
“The DOH needs to provide better oversight and the legislature needs to hold all operators in healthcare to a higher standard.”
While she didn’t talk about CarePoint specifically, New Jersey Hospital Association and CEO Cathy Bennett said that for-profit healthcare is necessary to brings hospitals to certain communities.
“As the SCI report notes, many communities in New Jersey would be without a hospital presence had a for-profit healthcare company not invested in local healthcare,” she said in a statement.
“We appreciate that commitment and maintain that hospitals should not be measured by their profit/for-profit status but by the quality care, investment in healthy communities, employment opportunities and other benefits they bring to their communities.”