CarePoint Initiates Financial Restructuring Amid Industry-Wide Financial Challenges
Strategic Restructuring Focuses on Uninterrupted Service to Patients
HUDSON COUNTY, N.J., Nov. 3, 2024 /PRNewswire/ -- CarePoint Health Systems, Inc. ("CarePoint"), is a non-profit corporation that operates three hospitals in Hudson County. Today, CarePoint announced that it has taken steps to implement a financial restructuring designed to improve its capital structure and position the Company to deliver essential patient care well into the future.
To facilitate this process, CarePoint has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Delaware. CarePoint has obtained $67 million in new financing to ensure that its hospitals remain open and that there will be no interruptions to its ability to provide patient care in the communities it serves throughout this process.
CarePoint Health Systems oversees the operations of three hospitals in Hudson County, New Jersey: Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken University Medical Center. Collectively, they provide services to over 60% of the population of the county and 65% of their patients are uninsured or underinsured.
These proceedings will provide CarePoint with the flexibility and resources to continue operations and care for patients as it implements strategic initiatives to enhance efficiency and align the organization's operations. Importantly, CarePoint remains committed to its employees and the high-quality care they provide. The organization has taken necessary steps to ensure that salary and benefits continue for employees and that their ability to provide compassionate care to each patient will not be materially impacted.
The decision to initiate this strategic reorganization has been driven by several factors, including the dramatic increase in direct costs of operating the Hospitals after COVID, insufficient state funding, and persistent reimbursement challenges that hospitals across the country have been facing.
Dr. Achintya Moulick, who successfully transitioned the system to a nonprofit and helped keep the hospitals open post-COVID, will serve as Chairman and CEO of CarePoint Health and will lead the organization through this next phase of its transition to a sustainable position.
"We chose this path after we thoroughly evaluated all available options that would ensure the continued delivery of uninterrupted care while enabling this necessary financial restructuring," said Dr. Moulick. "Safety net hospitals like Christ Hospital and Hoboken University Medical Center are vital lifelines for the uninsured, underinsured, and most vulnerable populations. We are proud to have kept our doors open these past five years despite an extremely challenging environment. We are also grateful for our employees and physicians across the organization, whose deep commitment to addressing health inequities and delivering high-quality, compassionate care to our communities has been unwavering."
"It is impossible to understate Dr. Moulick's contributions to the CarePoint healthcare system and the Hudson County community. Had it not been for his leadership over the past five years, the hospitals likely would have been forced to close, depriving our communities of access to essential and life-saving care," said Marilyn Cintron, CEO of Alliance Community Health care. "While there are still challenges ahead, CarePoint's ability to facilitate this necessary financial restructuring and remain open to serve patients is a testament to his vision and fortitude. We are confident that his leadership through this next chapter as Chairman of the Board of Trustees will finally put the hospitals in a sustainable position to continue delivering high quality care."
"This financial restructuring will allow Christ Hospital and CarePoint's other facilities to remain open while the system works to integrate its operations within the new Hudson Health System, and that is great news for Jersey City residents," said Jersey City Mayor Steven Fulop. "I am confident that this is the right direction and that it will put these essential community hospitals on more solid financial footing moving forward, which is critically important for Hudson County."
"I offer my sincere thanks to all of the CarePoint leadership for their contributions to the Hoboken community," added Hoboken Mayor Ravi Bhalla. "This restructuring is a critical step in the right direction to ensure the finances are now aligned to offer continued, quality healthcare to Hoboken with Hudson Health Systems leading the way. It is welcome news for residents of Hoboken and Hudson County as we were able to ensure that a hospital continues to remain right here in our Mile Square."
Court filings and additional information are available at https://dm.epiq11.com/Carepoint.
Advisors
Dilworth Paxson LLP is serving as legal counsel and Ankura Consulting is serving as financial advisor.
About
CarePoint Health brings quality, patient-focused health care to Hudson County. Combining the resources of three area hospitals, Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken University Medical Center, CarePoint Health provides a new approach to deliver health care that puts the patient front and center. CarePoint Health leverages a network of top doctors, nurses, and other medical professionals whose expertise and attentiveness work together to provide complete coordination of care, from the doctor's office to the hospital to the home. Patients benefit from the expertise and capabilities of a broad network of leading specialists and specialized technology. At CarePoint Health, all medical professionals emphasize preventive medicine and focus on educating patients to make healthy life choices. For more information on its facilities, partners and services, visit www.carepointhealth.org.
Media Contact: Justin Drew - [email protected]
SOURCE CarePoint Health
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