Meadowlands Hospital Medical Center in Secaucus, N.J., has paid its owners $1.9 million this year and spent millions on transactions with other companies owned by the investment group that purchased MHMC, according to NorthJersey.com report.
MHMC is facing a number of challenges, such as struggling patient volumes. The hospital also recently had a CEO resign after just three months on the job after announcing 100 of the hospital's employees would be laid off, which was a management decision that was later rescinded.
Along with the $1.9 million paid to the hospital's owners this year, MHMC has also spent millions on transactions with other companies owned by MHA LLC, the investment group that bought MHMC in 2010 and conducted business dealings with companies owned by people who also have an ownership stake in the hospital, according to the report.
New Jersey Health Commissioner Mary O’Dowd has expressed concerns about transactions like the ones entered into by MHMC, which she believes could lead to losses and ultimately compromise patients' access to healthcare
New Jersey Sen. Joseph Vitale (D), who serves as the chairman of the Senate Health Committee, also expressed concerns about MHMC not being held accountable by the state for its profit-maximizing transactions.
MHMC owners have declined to respond to questions, according to the report.