The two organizations have opted to create a four-hospital network called Hudson Health System.
Hudson Regional Hospital and CarePoint Health System are going from foes to partners in a financially motivated decision to form a new healthcare network.
The sides announced the signing of a letter of intent to create Hudson Health System, which will include CarePoint’s three hospitals—Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken University Medical Center—and Hudson Regional Hospital.
The move isn’t officially a merger, but is driven by the financial distress of CarePoint, which recently said it has requested $130 million in state funding to continue operating “at an optimal pace.” This past October, the New Jersey Department of Health noted in a letter sent to local and state officials that the system was operating at a 14.14% loss. Additionally, CarePoint is facing several lawsuits from vendors who claim they are owed nearly $5 million, according to a report by NJ.com.
The financial turmoil has led CarePoint to pursue a partnership that significantly improve its chances at survival, albeit one that requires teaming up with a competitor that has been on the other side of a much-publicized quarrel.
The frosty relationship between the two organizations has included a fight over the operation of hospitals and a lawsuit by CarePoint accusing Hudson Regional Hospital of collusion. Under the agreement to form, pending litigation will be dismissed.
Yan Moshe, chairman of Hudson Regional Hospital, will be chair of Hudson Health System, while CarePoint president and CEO Achintya Moulick will serve as the president and CEO of the new network.
"Since entering this marketplace in 2018 our team has driven a patient-focused mission that incorporates technology and engages leading healthcare professionals to deliver care under a new model," said Moshe in the news release. "I am excited to bring our proven track record and experienced team in partnership with Dr. Moulick to build a high quality, stable health care system that the county deserves.”
Moulick said: "Hudson County is the most diverse and dynamic community in New Jersey, and its residents deserve nothing less than exceptional care, affordable access, the most advanced specialties and technology, and the highest caliber physicians to serve patients' needs, especially the underserved communities that rely on our facilities.
"Yan Moshe has shown the type of innovative leadership that will allow us to thrive in an ever-changing healthcare environment, and with adequate state support I believe we can build a hospital system that will deliver on its core mission."
Jay Asser is the contributing editor for strategy at HealthLeaders.
KEY TAKEAWAYS
After standing in opposition of one another in recent years, CarePoint Health System and Hudson Regional Hospital are coming together to form Hudson Health System, comprised of four hospitals.
The agreement comes after CarePoint Health has hit financial turbulence, which includes requesting $130 million in state funding and facing multiple lawsuits from vendors.