STATE COMMISSIONER OF HEALTH AND SENIOR SERVICES APPROVES CERTIFICATE OF NEED APPLICATION FOR TRANSFER OF OWNERSHIP OF HOBOKEN UNIVERSITY MEDICAL CENTER
-- Important Hurdle Cleared Toward Completion of Sale to HUMC Holdco LLC --
HOBOKEN, NJ, October 21, 2011 -- The Hoboken Municipal Hospital Authority (HMHA) has learned that New Jersey’s Commissioner of Health and Senior Services Mary O’Dowd approved HUMC Holdco LLC’s Certificate of Need (CN) application to acquire ownership of Hoboken University Medical Center (HUMC). Today’s decision is the final State approval needed to complete the sale of HUMC and meets one of the goals of the HMHA to keep open an acute care medical center in the City of Hoboken.
“Today’s development is great news for the city of Hoboken. There are so many who worked tirelessly to make this transaction a reality. I want to thank my colleagues on the Authority, HUMC Holdco LLC and Mayor Dawn Zimmer,” says Toni Tomarazzo, chairwoman for HMHA. “Without the Mayor’s single-minded approach to solving our hospital dilemma, we wouldn’t have reached this point in the process. She knew that privatizing HUMC was the only way to preserve it for our residents.”
“Today’s approval has brought us even closer to the end of a long journey,” says Mayor Zimmer. “Within the next few days, we anticipate finalizing the sale of HUMC. It won’t be long after the transaction is completed that citizens of Hoboken will begin to see its benefits. We have saved 1,200 jobs and our hospital will be able continue to provide quality healthcare to our City. In addition, our municipal fiscal situation has improved significantly, as our $52 million bond guarantee obligation will have ended. This will dramatically improve our ability to fund both short- and long-term improvement projects for our long-neglected infrastructure.”
The State Health Planning Board held two public hearings -- one in Hoboken on July 21, 2011 to allow city residents to comment regarding the Certificate of Need application submitted to the Department of Health and Senior Services for the transfer of ownership of Hoboken University Medical Center to HUMC Holdco LLC. The session attracted more than 200 residents -- with the vast majority expressing support for the transaction.
Approval for a hospital’s “change of ownership” in New Jersey is a comprehensive process requiring the Commissioner of Health and Senior Services to issue a Certificate of Need. The State Health Planning Board must hold a public hearing in the hospital’s service area, consider the Certificate of Need application at an open public session, and then make a recommendation to the Commissioner. The Board recommended that the change of ownership to HUMC Holdco LLC be approved.
“HUMC operates in a dire financial position and is dependent on continued State subsidies to cover operating expenses. The change of ownership to HUMC Holdco LLC, an entity with private capital and a proven track record, offers the best opportunity for the hospital's long term financial stability and sustainability, as well as quality enhancement and new program development,” Tomarazzo adds. “This sale is in the best interests of our City and what we’ve worked long and hard to achieve.”
# # #