Operator of Hoboken’s hospital begins bankruptcy proceedings

HOBOKEN – As the sale of the Hoboken University Medical Center seemingly draws nearer, the non-profit organization that manages and operates the hospital, Hudson Healthcare, Inc., has filed for Chapter 11 bankruptcy.
The voluntary petition for bankruptcy was filed in United States Bankruptcy Court on Aug. 1. The estimated number of creditors is listed on the document as 1,000 – 5,000, and there are between $10,000,001 and $50,000,000 in estimated assets and estimated liabilities.
Creditors include PSE&G, the Hoboken Parking Authority, the city of Hoboken, the North Hudson Sewerage Authority, and UMDNJ.
The acting CEO of HUMC and CEO of Hudson Healthcare, Inc. Vincent Riccitelli said in a release that the bankruptcy proceedings do not mean the hospital is closing, but instead called it “a constructive step toward completion of the sale of HUMC and the eventual wind-down of HHI.”
“Assuming the transfer occurs as planned, it will benefit all stakeholders, promote public health and safety, maximize value for all creditors and smoothly transition operations to the new ownership group,” he said.
Riccitelli also said “it will be business as usual at HUMC, with no interruptions in patient services and no impact on hospital employees of medical staff during this transitional period.”
The transfer of ownership is expected to occur in mid-to-late September, according to a release.
The HHI is represented by Joseph DiPasquale of the West Orange law firm Trenk, DiPasquale, Webster, Della Fera & Sodono, P.C. The terms of the contract were not readily available. – Ray Smith