As HUMC Holdco applies for a certificate of need to acquire Hoboken (N.J.) University Medical Center, some residents have expressed opposition to the deal, according to a report by the Hudson Reporter.
In late April Hoboken University Medical Center agreed to sell to HUMC Holdco for $91.7 million. The target date for the sale is July 31. The hospital is currently run by the Hoboken Municipal Hospital Authority, which helped the financially failing facility by providing $52 million in bonds to underwrite operations in 2007.
Opponents have said the sale lacks transparency, will decrease hospital services and increase costs of care. They cited HUMC Holdco's elimination of some in-network insurance contracts after acquiring Bayonne (N.J.) Medical Center. Furthermore, the New Jersey Appleseed Public Interest Law Center started an online petition calling for an end to the sale process.
However, Mayor Dawn Zimmer said, "If this sale to HUMC Holdco does not go through, the hospital will close."
HUMC's planned payment of $91.7 includes a $51.6 million cash payment to end the city's underwriting. It has also offered a $20.9 million investment in the hospital and $19.2 million for "other deal considerations," such as accounts receivable and liabilities assumed as part of the sale.
The agreement between Hoboken University Medical Center and HUMC Holdco stipulates that the hospital must remain an acute-care facility for at least seven years. HUMC Holdco also said its goal is to retain as many insurance contracts as possible.
Read the report by the Hudson Reporter on the Hoboken University Medical Center.
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Mayor Seeks Public Support to Privatize New Jersey's Hoboken University Medical Center
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Officials Deny Conflicts of Interest in Sale of New Jersey's Hoboken University Medical Center to Private Entity
In late April Hoboken University Medical Center agreed to sell to HUMC Holdco for $91.7 million. The target date for the sale is July 31. The hospital is currently run by the Hoboken Municipal Hospital Authority, which helped the financially failing facility by providing $52 million in bonds to underwrite operations in 2007.
Opponents have said the sale lacks transparency, will decrease hospital services and increase costs of care. They cited HUMC Holdco's elimination of some in-network insurance contracts after acquiring Bayonne (N.J.) Medical Center. Furthermore, the New Jersey Appleseed Public Interest Law Center started an online petition calling for an end to the sale process.
However, Mayor Dawn Zimmer said, "If this sale to HUMC Holdco does not go through, the hospital will close."
HUMC's planned payment of $91.7 includes a $51.6 million cash payment to end the city's underwriting. It has also offered a $20.9 million investment in the hospital and $19.2 million for "other deal considerations," such as accounts receivable and liabilities assumed as part of the sale.
The agreement between Hoboken University Medical Center and HUMC Holdco stipulates that the hospital must remain an acute-care facility for at least seven years. HUMC Holdco also said its goal is to retain as many insurance contracts as possible.
Read the report by the Hudson Reporter on the Hoboken University Medical Center.
Related Articles on Hoboken University Medical Center:
Mayor Seeks Public Support to Privatize New Jersey's Hoboken University Medical Center
New Jersey's Hoboken University Medical Center to Sell to HUMC Holdco
Officials Deny Conflicts of Interest in Sale of New Jersey's Hoboken University Medical Center to Private Entity