Date: November 4, 2024

Location: Jersey City, New Jersey

CarePoint Health Systems, based in Jersey City, N.J., has filed for Chapter 11 bankruptcy protection as of November 3. Despite the financial restructuring, the healthcare provider assures that patient care will remain uninterrupted, thanks to secured funding and strategic partnerships.

Securing $67 Million to Maintain Operations

In a press release dated November 3, CarePoint announced it has secured $67 million in new funding. This financial boost is aimed at avoiding any interruptions in patient care and ensuring that its hospitals remain open during the restructuring process.

Hospitals Serving Over 60% of Hudson County

CarePoint Health Systems includes:

• Bayonne Medical Center in Bayonne, N.J.
• Christ Hospital in Jersey City, N.J.
• Hoboken University Medical Center in Hoboken, N.J.

These hospitals collectively provide care to more than 60% of Hudson County’s population. Notably, up to 65% of their patients are uninsured or underinsured, highlighting the essential role these hospitals play in the community.

Strategic Partnership with Hudson Regional Hospital

Moving forward, CarePoint is planning to affiliate with Hudson Regional Hospital in Secaucus, N.J., under the management services organization Hudson Health System. Hudson Regional already owns Bayonne Medical Center and will acquire the other two hospitals—Christ Hospital and Hoboken University Medical Center—under this partnership agreement.

Commitment to Employees and Patient Care

CarePoint has taken steps to ensure that employee salaries and benefits will continue throughout the financial restructuring. This move is crucial for maintaining the quality of patient care and supporting the staff who are essential to daily operations.

Reasons Behind the Chapter 11 Filing

The decision to file for Chapter 11 bankruptcy was driven by several factors:

• Insufficient state funding
• Reimbursement challenges
• Increased operating costs following the COVID-19 pandemic

These challenges have made it difficult for CarePoint to maintain financial stability without restructuring.

Leadership Remarks

Dr. Achintya Moulick, who will serve as the Chairman and CEO of CarePoint, stated:

“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. 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.”

Looking Ahead

CarePoint Health Systems remains committed to serving the Hudson County community. The financial restructuring aims to strengthen the organization’s ability to provide essential healthcare services to a population that heavily relies on its facilities.

Tags: CarePoint Health Systems, Chapter 11 Bankruptcy, Hudson County Healthcare, Bayonne Medical Center, Christ Hospital, Hoboken University Medical Center, Hudson Regional Hospital, Healthcare Funding Challenges