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Hoboken Municipal Hospital Authority Statement 
on Bayonne Medical Center Transaction

The Hoboken Municipal Hospital Authority (the “Authority”) is steadfast in its commitment to ensuring that Hoboken University Medical Center (HUMC) remains open as a full-service, acute-care, community hospital serving the Hoboken community.

The Authority is aware of the recent transaction announced by Bayonne Medical Center (BMC). According to BMC’s announcement: “Bayonne Medical Center (BMC) has recently entered into a long-term real estate agreement with Medical Properties Trust (MPT), a major U.S. real estate investment trust headquartered in Birmingham, Alabama. Under the terms of the agreement, BMC refinanced its existing debt and in addition has access to a significant amount of capital for continued improvements in its infrastructure, and essential projects including a major remodeling of its Emergency Department. … MPT has now purchased the buildings and property in which Bayonne Medical Center is located for $58 million and the hospital has a minimum operating lease of 45 years.”

As the Authority announced previously, it has signed a Letter of Intent with HUMC Holdco LLC, an entity having common ownership with BMC, and is continuing negotiations in good faith to reach a final Asset Purchase Agreement. Despite the common ownership, the potential Hoboken transaction is entirely independent from the Bayonne transaction, and the Authority will only enter into a final agreement with HUMC Holdco that meets the Authority’s key goals of maintaining HUMC as a full-service, acute-care, community hospital; preserving relationships with our outstanding employees and medical staff; and relieving the City’s taxpayers of the bond guarantee obligations made to save the Hospital in 2007.

Talking Ed Note: MSV will interrupt its policy on no editorializing on press releases of elected officials (technically the HUMC is an entity but) to add this is clearly designed to address concerns in the Hoboken community as a bid is being fully explored to purchase Hoboken University Medical Center.

Councilman Mike Russo who was one of the people who originally put Hoboken taxpayers on the hook with a $52 million bond to keep the hospital open is now doing what he can to stop the sale.  At the announcement of the selected bidder, he falsely claimed the HUMC did not have the legal authority to even sell the hospital.

Now he’s put out a statement trying to muddy the waters raising generic concerns about complications doing what he does best, using demagoguery to incite both the hard working employees of the hospital and fear in Hoboken residents the institution will not remain an acute care facility.

Mike Russo at Hoboken’s City Council – in his element, always pleased with his politrickin

Councilman Russo should stick to his strength: politrickin in the City Council where he can say just about anything on any issue or person, contradicting his own statements in less than 30 seconds.  In that respect, he’s an absolute marvel.

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