Petition opposes Hoboken University Medical Center's privatization deal

June 23, 2011 - Jersey Journal

A petition has come out against Hoboken mayor Dawn Zimmer's plan to privatize the Hoboken University Medical Center to HUMC Holdco LLC, the same company that operates Bayonne Medical Center.

The petition was started by NJ Appleseed, a public interest law center. As of 1 p.m. Thursday, the petition has seven signatures.

"We believe the propose sale is likely to result in the deterioration in the quality, availability or accessibility of health services in Hoboken and other Hudson County communities," said 
Renee Steinhagen, executive director of NJ Appleseed.

The petition, which was sent to 22 state lawmakers including Governor Chris Christie and Zimmer, says that HUMC Holdco LLC does not value quality and affordable healthcare.

Steinhagen is looking for 100 signatures.

The petition states: "Based on the track record of Bayonne Medical Center including termination of nearly all insurance contracts, dramatic increases in the cost of in-patient care, and some of the lowest quality of care scores in the county, we believe that the process undertaken by the Authority has not provided the Hoboken community and stakeholders with the best option available."

The petition calls for government intervention to prevent the transaction to go through, Steinhagen said.

The petition stems from an announcement in April from the Hoboken Municipal Hospital Authority, which voted to transfer ownership to HUMC Holdco LLC for $91.7 million.

Under the authorized agreement, HUMC Holdco will pay in cash the full outstanding balance of the $52 million bond obligation guaranteed by the City of Hoboken upon closing of the transaction.

HUMC Holdco will also assume certain liabilities and has earmarked more than $20 million for investment in HUMC according to the agreement.

The City of Hoboken will not receive any funds as part of the transaction, according to the agreement.

Zimmer said the agreement will increase technology investments and update the hospital with funding that the city could not provide.

Steinhagen cited a national survey that indicated that 38 percent of Bayonne patients would "definitely recommend" the hospital to others – a statistic that Steinhagen said proves that the owners don't value their patients.

"On the foregoing track record, we believe that the owners of Bayonne Medical Center do not deserve and have not earned the right to operate a second New Jersey hospital," she wrote in the petition.

The issue comes down to two main aspects, Steinhagen said: Quality of care and finances.

The petition lists staffing cuts, decreased in-patient and out-patient access and hospital admissions as proof that the Bayonne hospital doesn't give its patients the most aid, and will not change at Hoboken's hospital.

Financially, Steinhagen said the agreement will end up costing New Jersey more because of for-profit model.

"The decision will have a huge impact on the Hudson County's health system and also have a sizable impact on NJ's state budget given the explosive incremental cost associated with the Bayonne business model."