The sale of Meadowlands Hospital Medical Center to a group of private investors has received the blessing of the State Health Planning Board.
The nine-member board determined that the sale of the hospital to MHA, LLC would prevent the 200-bed facility from closing. Meadowlands Hospital, which is now owned by LibertyHealth Systems, currently loses about $700,000 a month, according to MHA Principal William Vazquez.
LibertyHealth also owns Jersey City Medical Center.
Health Commissioner Poonam Alaigh must still make a decision regarding the sale based on the board’s recommendation. She has four months to render a decision.
In a 19-page report that accompanied the decision, the board of health wrote that the sale is a “feasible option for the struggling [Meadowlands Hospital] to continue providing health care services to the community.”
Under the board’s recommendation, MHA would have to agree to keep Meadowlands Hospital an acute care facility for a specified period after the sale is approved.
Health Commissioner Poonam Alaigh must still make a decision regarding the sale based on the board’s recommendation. She has four months to render a decision.
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Health advocates and employees of the hospital have asked state agencies to place various conditions on the sale before approving the deal, several of which the Health Planning Board has recommended. Among the conditions the board would like made part of the sale are a written commitment to keep Meadowlands Hospital an acute care facility for at least seven years and an agreement to continue current agreements with insurance companies for at least one year after the sale is finalized.
In its report the board stated: “The transfer of ownership of [Meadowlands Hospital] would lessen the financial burden on Liberty and provide an opportunity for MHA, LLC to revitalize [Meadowlands] services and financial status. The Health Planning Board detailed near 20 conditions it would like made a condition of the sale. The prospective owners have committed to operating [the hospital] as an acute care hospital without limitation of duration. MHA, LLC envisions, with the application of their business model, a more viable hospital with greater patient access and more refined health care services.”
Labor deal sealed
Last month MHA reached a labor agreement with the Health Professionals and Allied Employees (HPAE), a union that represents more than 400 nurses, technical, and service staff workers at the hospital.
The agreement is a five year deal that guarantees jobs of all current employees and recognizes seniority. Current wages will be maintained and the contract guarantees annual salary increases of two percent for each of the next five years. Current annual leave accrual rates are also maintained. Under the new contract union will accrue 10 sick days a year, two days fewer than what they currently receive.
Although MHA is expected to switch health care providers from Horizon Blue Cross Blue Shield to United Health Care, workers will maintain the same level of coverage they currently have.
HPAE publically supports the hospital sale, although the union wants state agencies to put conditions on the sale.
In addition to the State Health Planning Board, the Office of the attorney General and Dept. of Health and Senior Services must also approve the sale.
At least two sources with knowledge of the sale said they expect the Attorney General and Dept. of Health and Senior Services to render their decisions by the end of November.
E-mail E. Assata Wright at awright@hudsonreporter.com.