Doctors gave impassioned pleas, nurses chanted, and public officials reassured. Clergymen prayed, union reps led cheers, and children waved signs at an energetic rally that drew over 500 people n front of the 143-year-old St. Mary Hospital on Willow Avenue on Wednesday.
The theme was consistent. St. Mary Hospital, the oldest continuously operated hospital in the state, is a Hoboken institution that employs around 1,200 people. It also has a history of giving quality medical care to anyone who walks through the doors. To close the hospital, they said, is unimaginable.
But tempered with the enthusiasm was the reality that this isn’t going to be an easy fix.
The hospital is losing money, and before it can be saved by a third party, a road map has to be developed to ensure the city landmark can become solvent.
A crisis
The Board of Directors of the Bon Secours Health Care System voted Dec. 30 to close the hospital over the next 12 months unless they can find another buyer.
They had been in negotiations to sell the facility to the University of Medicine and Dentistry of New Jersey last year. But at the end of the year, it was made public that UMDNJ was embroiled in a scandal that involved the alleged illegal over-billing of Medicaid. Once the scandal broke, UMDNJ pulled out of negotiations for St. Mary. But now, because of lobbying at the local, state and federal level, UMDNJ has been given permission to rejoin negotiations, despite the fact that it is currently overseen by the U.S. Attorney’s office.
A unified political front
Mayor David Roberts said since the possible closing of St. Mary’s was announced, the issue has become the number one priority of his administration and the governing body.
“It’s very sad we find ourselves here, but it nice to see leaders in our community coming together with members of the clergy, doctors, physicians, elected officials, senators, and people from across the state of New Jersey, Hoboken, and Hudson County to save St. Mary Hospital,” Roberts told crowd. “Hoboken is a wonderful city, and we have had many accomplishments, inroads and advances in our city, but I can’t imagine the city without this great hospital within it.”
What they face
State Sen. Bernard Kenny told the crowd that “I do believe that we have a very difficult task ahead of us.” According to a statement released by Bon Secours, since the company took over the hospital in January of 2000, they have provided loans to St. Mary for in excess of $118 million to fund operating losses.
The hemorrhaging of money has gotten worse recently, said Bon Secours officials. In fiscal year 2005, the hospital lost an estimated $27 million. In the first quarter of the current fiscal year, which began Sept. 1, the hospital lost between $2 million and $3 million per month, although some of the hospital employees believe that Bon Secours is overstating its losses.
Kenny said it will be imperative to get more paying customers into St. Mary.
“Right now the hospital, to a great extent, is visited by people on charity care and Medicaid,” Kenny said. “When you rely on this, it is very hard to have a revenue stream to support a full-scale acute care hospital.”
He added, “We have a population in this city approaching 50,000 people, and there are many payers in this community, many people who have health care insurance, and they must be attracted to this hospital for medical services.”
He said Hoboken is a “first class city that deserves a first class acute care hospital,” especially considering the city is a “world class transportation hub.”
“But the ultimate plan depends on money, finances, the payer mix, keeping doctors, nurses and technicians here, having the right physical plant – and all of this is a challenge,” Kenny said.
Moving forward
Two weeks ago, the employees issued a press release which said that since Bon Secours announced that they might close acute care services, admissions have increased 16 percent. Also, hospital employees reported that outpatient pediatric visits jumped from 1,009 visits in 2004 to 1,452 visits in 2005.
“These are specialty sessions for children in cardiology, pulmonary, allergy and immunology, apnea, gastroenterology and endocrinology,” said Bridget Hogan, nursing care coordinator of Ambulatory Services. “Without St. Mary Hospital these clients, many with limited finances, would have to travel long distances with small children.”
Kenny reports on UMDNJ progress
Kenny said the challenge is to develop a financial plan that will make the hospital solvent. He added that at all levels, local, state and federal officials are developing a road map.
He added that the hospital can return to profitability if UMDNJ comes in as a public teaching hospital. Since UMDNJ is itself a public teaching hospital, it would be eligible for $27 million in federal funds, which could be used to offset operating losses over the next year while the hospital restructures to render itself profitable. He said that in just the past three weeks, some progress has been made.
“One thing that was very critical was that U.S. Attorney Chris Christie publicly stated that Hoboken should have a hospital and that UMDNJ, though under federal monitoring, could be a partner in this hospital’s future,” Kenny said.
He added that on the eve of leaving office, Gov. Richard Codey signed legal documents that empowered St. Mary to enter into business relationships with third parties in order to form a financial plan that will make the hospital successful going forward.
Thirdly, the Hudson County Improvement Authority agreed to help fund an infusion of capital dollars to improve the physical plant and the hospital’s technology. According to Kenny, it would take a bare minimum of $25 million in improvements to the facilities to bring the hospital up to modern standards.
Kenny added that a permanent plan to save the hospital cannot be effected without Gov. Jon Corzine’s approval.
One possible setback
Earlier this week Dr. John Petillo, the embattled president of UMDNJ, agreed to resign from his post at the end of next month.
Petillo, said Kenny was one of the biggest advocates for a possible merger between UMDNJ and St. Mary Hospital. Wednesday, Kenny said that even with Petillo’s departure, UMDNJ is still at the table.
“There is a change in leadership at UNDMJ,” he said, “and while Dr. Petillo was a great advocate for this merger, we have been assured that going forward it is still a reality and we will have to work with the leadership of UNDNJ.”