The battle between CarePoint Health and Hudson Regional Hospital doesn’t look like it’s ending any time soon, with the former filing a lawsuit in hopes of winning an order to show cause with temporary restraints.
CarePoint, represented by four attorneys from Lowenstein Sandler LLP, filed in Hudson County Superior Court earlier today, alleging that HRH is interfering with their sale to BMC Hospital, as well as that they’ve breached a confidentiality agreement.
“Defendants previously submitted offers to purchase Bayonne Medicalâ€™s assets, which were not accepted,” the suit claims.
“After losing the bid, the Defendants are now using the valuable information they learned pursuant to the Confidentiality Agreement to interfere with and frustrate Bayonne Medicalâ€™s sales process.”
This marks the latest chapter in the fast and furious feud between the two hospital chains.
On Tuesday, CarePoint announced a new deal where BMC Hospital LLC would take over the Bayonne Medical Center.
According to a March 23rd letter of intent obtained by HCV, the deal was valued at $15 million. CarePoint says that was also the day that HRH learned that they lost their bid on the BMC.
However, just minutes later, HRH dropped a bombshell by revealing that they’d come to a $220 million agreement to purchase the properties at the BMC and Hoboken University Medical Center.
The valuable land parcels in question are owned by Avery Eisenreich, the head of the Alaris Health nursing home chain who also has a stake in Jersey City’s Christ Hospital.
He is currently in a separate lawsuit with CarePoint over those properties.
By the end of the day, HRH also revealed that had made an offer for all three CarePoint facilities, though CarePoint seemed adamant that the deal wouldn’t happen.
The court filing also contends that Kifaieh violated a confidentiality agreement with CarePoint by disclosing this to the press, specifically HCV.
Then yesterday, HRH doubled down that they were the ones standing on solid ground after CarePoint called on them to release the lease agreement they had signed.
“It is long-settled that this lease, notably in paragraph 26, cannot be assigned without express permission from the landlord, and in this case, the Department of Health. Claims to the contrary are disingenuous,” HRH President and CEO Dr. Nizar Kifaieh said in a statement.
CarePoint has not yet released a copy of the agreement, which now seems extremely unlikely given the new court filing.
According to the suit, the attempted HRH purchase was orchestrated by Eisenreich.
“The fact that Eisenreich was able to enlist Hudson Regional, [Yan] Moshe, and Kifaieh in his conspiracy â€“ and that Moshe and Kifaieh completely ignored and continue to ignore Hudson Regionalâ€™s clear obligations under the Confidentiality Agreement â€“ reflects that profit and greed are persistent motivators, even in the face of a global pandemic and the urgent health care needs of Hudson Countyâ€™s most vulnerable populations.”
This afternoon, Kifaieh brushed off the allegations in the suit, calling the filing a “desperate attempt” to distract the public from the fact that a deal to save all three CarePoint hospital’s has already been presented and is clear.
“Our intentions have been made very clear since we officially submitted a proposal to the owners of CarePoint to acquire all three facilities, which include Christ Hospital, over two weeks ago,” he stated.
“We are baffled by those allegations and think theyâ€™re a desperate attempt to deviate the publicâ€™s attention to the fact that we are a solid solution to the saga that has been taking place in Hudson County related to the sale of CarePoint. We present a solution that saves the taxpayersâ€™ money and time. Itâ€™s that simple.”
On Tuesday, Hudson County Executive Tom DeGise said he was encouraging the Hudson County Improvement Authority to continue executing eminent domain on the properties owned by Eisenreich, as well as asking the New Jersey Department of Health to get involved immediately.