Dear Editor:
During the past few weeks, residents of our city have heard and read about the importance of saving our hospital – Hoboken University Medical Center (HUMC). What they heard last Thursday (Aug. 4) was the collective sigh of relief from their neighbors as we learned that the State Health Planning Board approved the sale of HUMC to the principals of Bayonne Medical Center.
Make no mistake, this is an incredibly important development for our hospital, our residents and our city. The board learned firsthand – initially from residents at a public hearing on July 21 and then from the buyers last Thursday – that HUMC cannot survive as a stand-alone facility. The financial challenges are simply not sustainable. As further proof of this fact, early last week, Hudson Healthcare, the management company formed to run our hospital, filed for bankruptcy. The board heard over and over that if the sale doesn’t go through, our hospital will close. We can be thankful that they evaluated the facts and made a recommendation that is in the best interests of everyone in Hoboken.
But, the process is not complete. The board’s recommendation now sits on the desk of N.J. State Health Commissioner Mary O’Dowd. She has the opportunity to review the same set of facts and we are hopeful she will reach the same conclusion.
In the meantime, I will continue to reach out to our residents to discuss what the hospital will look like under new ownership. The picture is bright. The sale of our hospital to the Bayonne group will bring stability, access to capital, and the ability to compete in the hospital marketplace without dependency on state subsidies. If this sale is approved, the city will be released from its $52 million hospital bond guarantee. This obligation would represent 50 percent of our annual budget if the hospital were forced to close. We would not only lose this important healthcare institution, but the impact on our taxpayers and our ability to provide essential city services would be severe.
The new buyer has pledged to keep the hospital open as an acute care facility for at least seven (7) years, but clearly seems committed to make the investment necessary for the hospital to flourish in the long term. It has promised to immediately pursue fair and reasonable contracts with health insurers with the objective of securing new contracts that properly recognize the hospital’s cost structure. It has stated it will recognize and negotiate with the existing unions.
I’d like to repeat what I told members of the State Health Planning Board. Not long ago, virtually no-one believed that achieving our twin goals of saving our hospital and relieving our city of its bond guarantee was possible. Today, we stand on the cusp of achieving these seemingly impossible objectives, an enormous win for all of our taxpayers and residents. My fingers are crossed that Commissioner O’Dowd will seal the decision that’s right for Hoboken.
Sincerely,
Mayor Dawn Zimmer