Hudson Regional Hospital has issued CarePoint Health a termination letter for their lease as the operator of the Bayonne Medical Center, also vowing to contest the potential sale of the Hoboken University Medical Center.
“We intend to enforce the conditions of the lease for Hoboken University Medical Center, as we have Bayonne Medical Center to assure that the operator is financially and professionally fit to run a high-performing acute care program at our property,” HRH Chairman Yan Moshe said in a statement.
On December 11, HRH, who announced they acquired the BMC and HUMC property for $220 million back in June, served CarePoint notice of default under the lease through a 300-plus page letter, providing them with 20 days to cure material issues – info they relayed to the New Jersey Department of Health.
Among the most serious concerns is CarePoint’s failure to maintain adequate financial records and to disclose their financial condition, HRH said today.
On Friday, CarePoint said in a statement that the lease termination later was “only a publicity stunt” and has no actual legal standing.
“CarePoint Health rejects and denounces the reckless and unfounded assertions made by HRH regarding the terms and conditions of the lease which have absolutely no merit. HRH has no legal right to terminate the lease,” they said.
“We have told them that in writing, and that the unlawful HRH lease termination has no practical effect on Bayonne Medical Center, it’s incredible staff or it’s patients. It is only a publicity stunt. Nothing will change at the hospital.”
Shortly after the default letter was sent, BMC Hospital LLC President Wayne Hatami said that no tactics from CarePoint will change the fact that they won’t operate the BMC.
“It is clear that Hudson Regional cannot accept that it lost in CarePoint’s RFP process. Bayonne residents want to receive care locally on the peninsula from operators as focused on Bayonne as they are, and that is why BMC was selected and will serve this community,” he said at the time.
The release of the lease termination letter coincides with CarePoint revealing yesterday of the signing of a letter of intent (LOI) with California-based KPC Global Management to sell the HUMC and Christ Hospital, as HCV first reported.
“Faced with losses in court and their inability to secure public funding through an eminent domain foreclosure, BMC has consistently sought to divert attention away from its deficiencies by slandering and maligning the reputations of Hudson Regional’s principals. Each of their allegations has been proven false,” added HRH CEO Dr. Nizar Kifaieh.
“The bottom line is that CarePoint has not demonstrated the will or the capacity to address its failures under the Bayonne lease and the requirements of the Department of Health; and BMC Hospital LLC has not been deemed a suitable successor.”
CarePoint declined to comment on the latest development related to the BMC.
Editor’s note: This story has been updated with a comment from CarePoint Health.