New Jersey Superior Court Chancery Division Judge Brian Katz has 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.
By Dan Israel/Hudson County View
“Defendants’ cross-motion to dismiss Plaintiff’s Complaint be and hereby is granted for the reasons set forth on the record. Third Party Intervenors’ application be and hereby is deemed moot,” wrote Katz in a June 24th decision.
He also denied having the case transferred to the New Jersey Appellate Division.
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 Alaris Health CEO Avery 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 temporary restraining order (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.
Despite that face, outraged elected officials and residents turned the opportunity into an impromptu “Save Christ Hospital” rally as they decried the situation and outlined next steps forward.
That same month, as HRH opened the new lobby at Bayonne University Hospital and a new primary care facility in West New York, where HRH CEO and President Dr. Nizar Kifaieh told HCV the hospital system is no longer looking to keep the hospital permanently closed.
That was later echoed by Franck in court that services were only “suspended” temporarily and are in the process of exploring alternatives including relocating and reopening the facility.
As of this writing, there is no new SHPB meeting scheduled with the NJDOH.
