CarePoint Health and Hudson Regional Hospital are moving forward with plans to create a new health care system.

Under the partnership structure CarePoint’s nonprofit board of trustees approved Oct. 29, the entities would establish Hudson Health System. The management services organization would cover Hudson Regional Hospital, Bayonne Medical Center, Hoboken University Medical Center and Christ Hospital.

As part of the arrangement, Secaucus-based Hudson Regional will exercise exclusive options it has negotiated to acquire both the Hoboken University Medical Center and Christ Hospital properties from CarePoint. Hudson Regional already owns CarePoint’s Bayonne Medical Center property.

Officials first announced plans for the partnership earlier this year. At the time, they said the “innovative new model” would offer high-quality, affordable health care for one of New Jersey’s most populated areas.

In an Oct. 30 update, CarePoint and Hudson Regional added the move will allow Hudson Health System “to control both the real estate and operations at all four hospital sites, aligning interests that previously had plagued CarePoint due to its status as a tenant.”

They also said it would enable increased financial and managerial flexibility, which will create a sustainable path for Hudson Health System to continue operating Hoboken University Medical Center and Christ Hospital as nonprofit entities.

Embarking on ‘a unified mission’

According to the press release, CarePoint CEO and chairman Dr. Achintya Moulick will direct his hospitals‘ transition. He will work with Hudson Regional chairman Yan Moshe and Hudson Regional CEO Dr. Nizar Kifaieh on operational integration.

“Hudson Health System is ready to advance a unified mission of delivering state-of-the-art medical services,” Moulick said in a statement. “Having four hospitals working together under one system creates the scale and geographic coverage required to provide premier services to the entire county. Residents can look forward to expanded services, cutting edge technology and an unwavering focus on patient-centered care.”

“A partnership as complex as this has taken time and care and required exploring a variety of variables, but we believe that the result will be extraordinary,” continued Moulick. “Our mutual commitment is to ensure that every resident of Hudson County has access to best-in-class health care right in their own backyard. By bringing these institutions together, we are not only preserving their individual legacies but also enhancing our collective capacity to deliver cutting-edge medical care.”

Continuing care

Since converting to a nonprofit in 2021, CarePoint’s financial situation has deteriorated. In recent months, the system reportedly considered several options, such as filing for Chapter 11 bankruptcy or a merger to keep its three hospitals from going dark.

In September, CarePoint warned it could lay off more than 2,600 employees as it works to shore up finances. 

Moshe said, “We are thrilled with the opportunity to rebuild, restore and protect health care in Hudson County by connecting facility ownership with health care operations. Hudson Regional Hospital has demonstrated how transformational it is when we apply our expertise to create an efficient, quality health care delivery system. With Dr. Moulick as our collaborator, the potential for a high-performing system will be achieved.”

“Hudson Health System will benefit from the same commitment we made at Hudson Regional Hospital to upgrade facilities with advanced technologies and create world-class health care environments and services,” added Kifaieh. “After many months of work by Dr. Moulick and our team, the future of health care in Hudson County went from uncertain to bright in one day.”

The New Jersey Department of Health will need to approve any merger.

Mayors weigh in

The deal was announced about a week after Hudson County officials rallied with CarePoint workers for the hospitals to stay open. Jersey City Mayor Steven Fulop and Hoboken Mayor Ravi both attended.

Fulop said, “After weeks of hard work where closure and loss of jobs were a reality, I’m proud that the board was able to get this in a direction to save health care in Hudson County and the thousands of jobs at these hospitals.”

“There are many people that have helped get us here, but significant credit goes to Dr. Moulick for his leadership over the last five years to keep CarePoint alive. Without that we would never have been able to get to where we are now. The next chapter will be bright for Hudson County hospitals,” he said.

Hoboken Mayor Ravi Bhalla added, “I am thrilled that residents of Hoboken now have peace of mind that they will have a high-quality health care provider in Hudson Regional taking over CarePoint operations. From the very beginning of this process, Mayor Fulop and I have been steadfast that a functioning hospital with expert care must remain in our two cities, and we are extremely proud to support the leadership at Hudson Regional for stepping up to the plate and saving our health care system.”

More health care network agreements:

• Cape Regional officially joins Cooper University Health Care
• Definitive agreement outlines Atlantic Health, Saint Peter’s partnership