Hudson Regional Health (HRH) is moving to appeal Hudson County Superior Court Judge Brian Katz’s ruling dismissing their case against the state to formally close Heights University Hospital in Jersey City, despite the fact that they haven’t opened since March.
By Dan Israel/Hudson County View
HRH has given notice of appeal to the Superior Court’s Appellate Division on July 2nd, but has still not formally filed. In a statement, HRH spokesman Vijay Chaudhuri confirmed that the healthcare system would be appealing the ruling.
“In an attempt to preserve its right to pursue all potential options to rebuild the healthcare system in Jersey City in a way that is financially sustainable, HRH intends to appeal the ruling. As has been stated numerous times, a plethora of challenges beyond HRH’s control contributed to the extremely precarious financial state of Heights University Hospital,” Chaudhuri said in a statement to HCV.
“These include tens of millions of dollars of cuts to county, state and federal funding, an antiquated building that has lived well past its useful life, a majority underinsured patient population, and serious mismanagement by the prior owner, among others.”
The appeal comes after Hudson County Superior Court Assignment Judge David Katz granted the state’s motion to dismiss the Heights University Hospital’s lawsuit to halt the certificate of need (CN) process to officially close the facility after their doors shuttered in March.
Arguing on behalf of HUH, Franck claimed the withdrawal request was final and no further consideration or review will be given to their CN application, adding completing it would make the hospital “punitive to operate,” emphasized their ultimate plan is to reopen.
Meanwhile, Deputy Attorney General Francis Baker, representing the state, argued that the court didn’t have jurisdiction to adjudicate the CN application, that the administrative proceeding through the NJDOH to legally and appropriately close the facility is still ongoing, there is no precedent for letting a hospital close without proper oversight.
Attorney Lee Vartan, on behalf of Eisenreich – who owns the hospital land – argued that his client is an interested party with the ability to intervene due to the “adversity” against against him.
He further stated that the hospital defaults on the lease if the facility is not in operation as a 349-bed hospital, and that he can take over the CN to operate the hospital themselves or through another entity while simultaneously applying for another.
Renée Steinhagen, an attorney at the legal non-profit New Jersey Appleseed who was representing the Save Our Hospitals Coalition, filed an amicus brief supporting the NJDOH, challenging the assertion that Eisenreich and HRH weren’t coordinating on a land deal to build luxury apartments on the site of the former hospital.
The parties also argued over the validity of HUH’s license, with the state claiming it is void and HRH denying that is the case, while Vartan feels it now belongs to Eisenreich and Steinhagen claimed it had actually expired.
On June 18th, citing the papers submitted in support and opposition of the applications, and following those oral arguments, Katz ultimately ruled against HRH and denied the motion seeking preliminary restraints against the state and the TRO was subsequently discharged and vacated.
He then set the next court hearing for June 24th to deliberate on the other two motions to intervene and to dismiss.
At that hearing, the order to intervene by landlord Avery Eisenreich via CH 750 Park LLC and CH Castle LLC was also denied by Katz and their Third Party Intervenors’ application was deemed moot.
In addition, Katz denied an oral application by Vartan on behalf of Eisenreich to transfer the matter to the Appellate Division.
Katz then granted the state, Commissioner Washington, and the NJDOH’s motion to dismiss the complaint for lack of jurisdiction.
Before any hospital in New Jersey closes, it must first completed the state-mandated CN process to determine if the closure can proceed.
This is something that did not occur before HRH ended in-patient services at HUH last November before illegally and inappropriately closing the doors to its Emergency Department (ED) this past March, as HCV first reported.
The hospital operator cited over $104 million in loses at HUH since acquiring the facility, Hoboken University Hospital, and Bayonne University Hospital, from CarePoint Health via a bankruptcy proceeding finalized in April of 2025 as the reason for shuttering the facility.
Last-ditch legal efforts by the city to keep the hospital open were unsuccessful.
The motion essentially sought to further the TRO initially granted to HRH at the eleventh hour back in April via a previous court injunction granted by Hudson County Superior Court Judge Anthony D’Elia to cancel the State Health Planning Board (SHPB) meeting to hear HRH’s CN application to officially close the facility.
The legal saga began when HRH attorney Mandelbaum Barrett PC partner Alexis Goldberger wrote a letter to Certificate of Need and Healthcare Facility Licensure Program Executive Director Michael Kennedy on April 15th requesting the withdrawal of their CN application.
The SHPB hearing was originally scheduled to take place at the community room at the hospital later that night, but was moved to Dickinson High School after HRH refused to allow the meeting to move forward in the original location.
While the NJDOH rejected the withdrawal request, HRH successfully cancelled the CN application hearing after it was granted the TRO via court injunction, though an impromptu town hall continued with outraged city officials and residents.
As of this writing, there is no new SHPB meeting scheduled with the NJDOH, which has declined to comment on the matter.
