Jersey City, N.J.-based Hudson Regional Health is asking the state for at least $18 million in funding to keep Heights University Hospital open, warning that without a decision by Nov. 10, further downsizing or even full closure could be imminent.
In an Oct. 30 letter to New Jersey Gov. Phil Murphy and Department of Health Commissioner Jeff Brown, Hudson Regional Health President and CEO Nizar Kifaieh, MD, said the system has implemented a financial stabilization plan at Heights University Hospital to maintain operations and critical services. The hospital serves a largely underserved population, with 65% of patients having limited or no insurance, according to Dr. Kifaieh.
Despite reducing costs by about $25 million annually, the hospital is still projected to lose about $27 million a year. Hudson Regional has committed to covering $17 million of that amount, but leaders say they need the state to provide at least $18 million over a 26-week period — a portion of which would come via legislative grants — to bridge the funding gap and prevent a broader financial crisis across the four-hospital system.
“Without the commitment of at least $18 million from the state to support the hospital’s operations, the losses would further jeopardize the health of the entire Hudson Regional network in Hoboken, Bayonne and Secaucus,” Dr. Kifaieh wrote.
The request follows an initial $2 million in stopgap funding the hospital received in October. Lawmakers including Sens. Raj Mukherji, Brian Stack, Angela McKnight and Assemblyman John Allen have expressed support for additional funding to stabilize the hospital.
Dr. Kifaieh said Hudson Regional has already begun reintroducing specialty services that could generate new revenue and outlined longer-term plans that include diversifying the payer mix, upgrading infrastructure and eventually building a new hospital. However, he emphasized that none of those efforts will be viable without short-term financial support to weather the current fiscal strain.
“Despite our stabilization efforts, we will face further liquidity challenges by [Nov. 10],” he wrote. “We sincerely hope that we can avoid a situation where we will be left with no choice but to submit plans to the DOH to further downsize Heights University Hospital or consider a complete closure.”
Hudson Regional Health was formed in May following the bankruptcy exit of CarePoint Health. The system launched its stabilization plan for Heights University Hospital earlier this month, which involved winding down nonessential services and relocating some staff to other facilities within the system. Dr. Kifaieh said affected employees have been offered roles elsewhere and that all patients continue to receive uninterrupted care.
