Nurses union wants deeper review of Christ Hospital’s proposed sale to for-profit

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Christ Hospital, in Jersey City, is seeking an expedited state government review of its proposed sale to the California for-profit Prime Healthcare Services in order to close the deal by year’s end, while the union for the hospital’s nurses is asking the state attorney general not to fast-track the…

Christ Hospital, in Jersey City, is seeking an expedited state government review of its proposed sale to the California for-profit Prime Healthcare Services in order to close the deal by year’s end, while the union for the hospital’s nurses is asking the state attorney general not to fast-track the transaction.

Paula Nevoso, vice president of Christ Hospital’s foundation, said the deal “is not signed on the dotted line yet,” and is in the due diligence phase. She declined to comment on the request by the Health Professionals and Allied Employees union that the AG’s review not be expedited.

Christ Hospital is in severe financial distress, and as of June 30, its liabilities exceeded its assets by $84 million, according to a Sept. 13 letter to Deputy Attorney General Jay A. Ganzman by hospital attorney James M. Burns, of  Genova, Burns & Giantomasi, in Newark.  The letter said a lengthy review by the state “could seriously jeopardize the proposed transaction, thus depriving Christ Hospital of its best and likely last opportunity to avoid bankruptcy and closure.”
 
According to the letter, Prime proposes to purchase Christ Hospital for $15.75 million, which would repay an outstanding debt of $750,000, provide $5 million for unfunded pension liabilities and pay $10 million to unsecured creditors.  The deal would require Prime to keep the hospital operating for at least five years and  invest no less than $10 million for working capital and $35 million for capital improvements.

“If anything, this proposed sale needs more review, more community input and closer scrutiny than any we’ve seen in the sale of a community hospital to a for-profit company,” Ann Twomey, president of HPAE, said in a statement. The union represents 400 registered nurses at Christ Hospital.

HPAE called for a full review of the proposed sale that would question whether or not Christ Hospital sought a not-for-profit buyer or strategic partner outside New Jersey before seeking to convert to a for-profit hospital.