Kimberly Redmond//September 19, 2024//
Bayonne Medical Center in Bayonne - PROVIDED BY CAREPOINT HEALTH
Bayonne Medical Center in Bayonne - PROVIDED BY CAREPOINT HEALTH
Kimberly Redmond//September 19, 2024//
CarePoint Health, the largest hospital system in Hudson County, could lay off more than 2,600 employees as it works to shore up its finances.
According to a notice with the New Jersey Department of Labor & Workforce Development, the network reported the following cuts may take effect Dec. 12:
Under state law, companies with more than 100 employees must provide workers at least 90 days’ notice prior to a mass layoff.
The filing comes as the struggling system is reportedly considering several options, such as filing for Chapter 11 bankruptcy or a merger to keep its three hospitals from going dark. CarePoint officials have said they expect a decision on restructuring by the end of September.
“Despite facing increasingly daunting financial challenges, CarePoint Health remains committed to delivering best in class healthcare services to the people of Hudson County and the system is exploring various strategic financial restructuring options to support that vision,” a system spokesperson said in a statement to NJBIZ.
“It is critical to note that the system’s three local hospitals are not facing any imminent threat of closure and no final decisions regarding layoffs have been made at this time. We are grateful to CarePoint’s incredibly dedicated physicians and staff for their commitment to excellence and partnership during this period and will continue to do whatever is possible to ensure that they can keep providing exceptional and essential healthcare service to the communities we serve,” the statement said.
Since converting to a nonprofit in 2021, CarePoint’s financial situation has deteriorated. Along with dozens of lawsuits from creditors, Hudson Regional Hospital in Secaucus reportedly sued the system this past summer over an alleged breach of a merger pact between the two entities.
In January, CarePoint signed a letter of intent with for-profit Hudson Regional to combine under a new management company that would include its three safety-net hospitals.