How will sale of Saint Michael’s Hospital transform healthcare in Newark?

Governor Chris Christie’s administration has put off for nearly three years deciding what it should do about the future of healthcare in Newark. But the scheduled sale of the bankrupt Saint Michael’s Medical Center, one of five Newark hospitals, should force a decision.

The outcome of the sale will likely help shape the quality of healthcare that Newark residents receive, according to industry attorneys and analysts. It could also affect the financial stability of all of the city’s hospitals.

State involvement in hospital bankruptcies normally is limited to issues related to operating licenses. But not in this case, for three reasons:

First, the New Jersey Health Care Facilities Financing Authority, which is chaired by Acting Commissioner of Health Cathleen Bennett, issued tax-exempt bonds for Saint Michael’s that currently total roughly $230 million.

Second, the state also owns another troubled Newark facility — University Hospital, which is facing millions of dollars in annual operating losses for the foreseeable future.

Third, if the state allows the sale of Saint Michael’s it should get a short-term financial shot in the arm. But if were to decide to take over the facility, it could realize a greater payback over a longer period.

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Union Criticizes Handling of Hospital’s Finances

Re-post from NJSpotlight | Written by Andrew Kitchenman

Hospital leader defends approach, while health commissioner is asked to appoint temporary manager of facility

A labor union representing workers at Meadowlands Hospital Medical Center is demanding that the state step up its fiscal oversight of the for-profit hospital after it eliminated more than 100 jobs.

The Health Professionals and Allied Employees and the New Jersey Appleseed Public Interest Law Center sent a letter to state Health Commissioner Mary E. O’Dowd on Friday reiterating their request for appointment of a temporary manager for the Secaucus hospital.

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