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Proposed hospital sale means NJ will pay $30 million debt

The Star-Ledger, March 4, 2014
The proposed sale of St. Mary's Hospital in Passaic will leave taxpayers on the hook to pay $30.5 million, under terms of a state loan the hospital received in 2007 when it became the last health care facility in the city. Prime Healthcare Services of California has offered to buy the nearly bankrupt hospital for $30 million. But only half of the sale price would pay down the bonds issued by a state loan program created to cushion the blow to a community after a hospital is bought or closed. The deal with Prime still leaves $22 million in unpaid debt, plus $8.7 million in interest due by 2027, said Mark Hopkins, executive director of the New Jersey Health Care Facilities Financing Authority.