N.J. hospital says it can’t pay employees, must close after 152 years
Editor’s note: This article has been updated to include comment from the New Jersey Department of Health.
A Jersey City hospital will close its doors after 152 years of service after failing to receive millions in support from the government, its parent company announced Friday.
Hudson Regional Health President and Chief Executive Officer Dr. Nizar Kifaieh said Heights University Hospital will operate only as a standalone emergency department and support services starting Saturday.
The news, announced at a press conference, did not come as much of a surprise. Hudson Regional, which owns the hospital, announced in October that it would begin laying off staff and discontinuing services. As of Friday, only five patients remained in the hospital, Kifaieh said.
Hudson County is strapped for cash.
Just seven months after the Hudson District took over Heights University Hospital from CarePoint Health System own share of troubleThe company appealed to the public for financial support.
On Friday, Kifaieh said critical financing had not been secured and the hospital would be closed.
“Unfortunately, we were unable to get a commitment from the governor’s office to fund such an effort, and here we are today,” Kifaieh said.
Gov. Phil Murphy’s office referred questions to the state health department. A spokesperson for the New Jersey Department of Health said Friday that good faith efforts have been made to support Heights Hospital, including $2 million in October to help with payroll and prevent a closure.
“Despite these efforts, Hudson Regional Hospital failed to fund payroll this week and failed to fully deliver on the performance it represented in its Plan of Reorganization, which was approved by the Bankruptcy Court as a condition of emerging from bankruptcy. It also failed to meet the commitments it made to the community it serves and to the State to turn things around after taking over the hospital,” state Department of Health spokeswoman Dalya Ewais said in a statement.
Kifaieh said Hudson Regional is working hard to keep the hospital open, pouring $300 million into the operation, much of it going to Heights University Hospital. Despite this investment, the hospital is losing $1.5 million a week.
“We believe that we tried very hard to get something out of the unfortunate financial situation that we had here last year, but again we came to a point where we couldn’t,” Kifaieh said.
The hospital will continue to serve as an independent emergency department and provide other health services from its auxiliary building. Unserviced areas will be closed.
Heights Hospital employees also learned of a delay in processing payroll Thursday night and were notified that paychecks scheduled for Friday would be delayed.
In an email, employees were told that “the delay is due to insufficient financial support from the State of New Jersey as well as severe cash flow restrictions.”
labor union, a Local Health Professionals and Allied WorkersHe said Hudson Regional surpassed CarePoint as the worst employer in Hudson County.
“Hudson Regional illegally made this decision without regard to Department of Health regulations or the WARN Act. What will happen to the patients in this community? Their employees are left without a paycheck for two weeks’ work and without future employment,” union president Debbie White said in a statement Friday.
The company said all employees will be paid in full as soon as possible. Heights Hospital has about 699 employees, Kifaieh said.
He added that the larger Hudson Regional health network has already added 100 full-time employees affected by the hospital’s downsizing and plans to add about 100 more.
Ward E Councilman James Solomon called on Murphy and the state health department to seek emergency relief to prevent the hospital from closing.
“Enough playing with people’s lives and healthcare,” Solomon said. Instagram reel It was released on November 13.
“Governor Murphy, Commissioner Brown, take action. Don’t wash your hands of this situation. File the restraining order now,” said Solomon, who is currently in a runoff election to become the city’s next mayor against former New Jersey Gov. Jim McGreevey.
Ewais, the state Department of Health spokesman, said no matter how bad the situation is, a restraining order is not the answer.
“Given the low patient volume (soon to be zero today), staffing cuts, and HRH’s refusal to properly fund facility operations, a TRO would be neither effective nor appropriate at this time. The State will continue to review the newly filed CN closure application and continue its oversight to ensure the ED remains operational,” Ewais said in a statement Friday afternoon.
Located on Palisades Boulevard, the hospital has been a fixture in the city through many seasons of change. It was originally founded in 1872 as Christ Hospital.
An 1897 Jersey City News article describes the hospital as “one of the most admirable institutions in the city.”
But even a century ago, the hospital was struggling to provide care with limited resources.
The 1897 report said: “We have always understood that the resources of the hospital are limited. There is no public assistance. It depends almost entirely on contributions from citizens, and these cannot keep pace with the needs of a home that never closes its doors to victims of disease or calamity.”
It’s unclear what will happen to the hospital area. Last month, Hudson Regional expressed interest in using part of the site for housing development and using the profits to replace Heights Hospital, which has outdated infrastructure.
Opponents of this plan, including Solomon, claim that rezoning the hospital is the company’s plan.
Hospital officials denied that was their plan.
“None of us wanted to get to this point. This is not due to any suggestion that this is about real estate development,” Kifaieh said.
Either way, this plan now faces an uphill battle.
On Wednesday, Jersey City officials voted to implement a law. regulations this would prevent the construction of senior housing and assisted living housing in the city’s medical district. If approved, the ordinance could disrupt Hudson Regional’s plans for future use of the property.
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