Hoboken may save hospital by selling it

The city of Hoboken may sell the Hoboken University Medical Center to
the medical development group HUMC Holdco to ensure that the hospital
stays open, WNYC reported. Under the deal, the city would transfer
nearly $52 million in guaranteed bonds to the new ownership. Hoboken’s City Council began
supporting the hospital in 2007 when the hospital was close to failure
and this morning the State Health Planning Board recommended the sale.
Hoboken Mayor Dawn Zimmer said at a hearing this morning that the
hospital will close if the sale does not go through. HUMC’s Chief Transition
Officer Phillip Schaengold said HUMC would also invest $20 million in the hospital, which is only good to use for the next five years due to the state of its facility, Patch reported. The final decision is up to the New Jersey Department of
Health. Paradigm Physician Partners had also submitted a bid for the
hospital, but the Hoboken Municipal Hospital Authority Chairwoman Toni
Tomarazzo said that Paradigm did not have the funding necessary to
save the hospital. [WNYC] and
[Patch]