More than 2,000 WARN (Worker Adjustment and Retraining Notification) notices have been issued to employees at Hoboken University Medical Center and Christ Hospital in Jersey City.
RWJBarnabas Health announced last month that it is acquiring the two CarePoint facilities.
CarePoint entered into a non-binding Letter of Intent (LOI) with RWJBarnabas with the intent to have a definitive agreement signed in the next few weeks that will outline the specifics related to the transaction, according to CarePoint.
“There are multiple legal and regulatory requirements for this type of transaction and one of those included sending WARN Notices to the employees at CarePoint affected by the transaction. We are hoping for an expedited closing in order to comply with the law notices that were sent. This is only one step in a very long process,” CarePoint spokesperson Jennifer Morrill told NJBIZ.
According to industry sources, a normal transition period occurs with these types of mergers. While it is unclear how many jobs would be retained at this stage, it is likely that some will be for the short term as the transition process moves forward.
CarePoint is currently seeking a partner for Bayonne Medical Center that was not part of the RWJBarnabas deal.
On Wednesday, the Bayonne City Council introduced an ordinance to create a Municipal Hospital Authority that could allow the city to temporarily take control of Bayonne Medical Center’s state charter in the event that a buyer for the facility cannot immediately be found.