Meadowlands, a for-profit hospital owned by investment firm MHA, submitted financial statements this month after reaching an agreement in May with the New Jersey Department of Health to hire a department-approved independent financial consulting firm to review statements going back three years and into 2017.
The hospital’s financial statements show an $11 million profit on operations in the first year of ownership, compared with a $10.4 million loss under the previous owners, according to the report. However, it also reported a cash overdraft of $1 million in 2011.
New Jersey Sen. Joseph Vitale has expressed concern about the financial statements, saying the investors are more interested in profiting themselves rather than investing in the hospital and ensuring employees get paid, according to the report.
In 2011, Meadowlands also provided more than $3 million in charity care as well as $2.1 million in sales taxes, $500,000 in local property taxes and $29 million invested in capital improvements, hospital spokesman Ben Martin said in a statement, according to the report.
The hospital has been the subject of complaints from the Health Professionals and Allied Employees union, which represents Meadowlands’ staff. Personal insurance company Travelers also filed a lawsuit against Meadowlands in April alleging the hospital colluded with physicians intentionally to refer car accident patients to costly hospital care. The Internal Revenue Service also issued a $4.5 million property lien against the hospital in March, which has since been lifted.
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