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State of NJ issues required “Certificate of Need” paving way for sale of HUMC to Holdco next week

Hoboken Municipal Hospital Authority announces:

STATE COMMISSIONER OF HEALTH AND SENIOR SERVICES APPROVES CERTIFICATE
OF NEED APPLICATION FOR TRANSFER OF OWNERSHIP OF HOBOKEN UNIVERSITY MEDICAL
CENTER
— Important Hurdle Cleared Toward Completion of Sale to HUMC Holdco
LLC —
HOBOKEN, NJ, October 21,
2011 —
The Hoboken Municipal Hospital Authority (HMHA) has learned that
New Jersey’s Commissioner of Health and Senior Services Mary O’Dowd approved
HUMC Holdco LLC’s Certificate of Need (CN) application to acquire ownership of
Hoboken University Medical Center (HUMC). 
Today’s decision is the final State approval needed to complete the sale
of HUMC and meets one of  the  goals of the HMHA to keep open an acute care
medical center in the City of Hoboken.
“Today’s development is great news for the city of Hoboken.  There are so many who worked tirelessly to
make this transaction a reality.  I want
to thank my colleagues on the Authority, HUMC Holdco LLC and Mayor Dawn
Zimmer,” says Toni Tomarazzo, chairwoman for HMHA.  “Without the Mayor’s single-minded approach
to solving our hospital dilemma, we wouldn’t have reached this point in the
process. She knew that privatizing HUMC was the only way to preserve it for our
residents.”
“Today’s approval has brought us even closer to the end of a
long journey,” says Mayor Zimmer. 
“Within the next few days, we anticipate finalizing the sale of
HUMC.  It won’t be long after the
transaction is completed that citizens of Hoboken will begin to see its
benefits.  We have saved 1,200 jobs and
our hospital will be able continue to provide quality healthcare to our City.  In addition, our municipal fiscal situation
has improved significantly, as our $52 million bond guarantee obligation will
have ended.  This will dramatically
improve our ability to fund both short- and long-term improvement projects for
our long-neglected infrastructure.”
The State Health Planning Board held two public hearings — one
in Hoboken on July 21, 2011 to allow city residents to comment regarding the
Certificate of Need application submitted to the Department of Health and
Senior Services for the transfer of ownership of Hoboken University Medical
Center to HUMC Holdco LLC.  The session
attracted more than 200 residents — with the vast majority expressing support
for the transaction.
 
Approval for a hospital’s “change of ownership” in New Jersey is
a comprehensive process requiring the Commissioner of Health and Senior
Services to issue a Certificate of Need. 
The State Health Planning Board must hold a public hearing in the
hospital’s service area, consider the Certificate of Need application at an
open public session, and then make a recommendation to the Commissioner.  The Board recommended that the change of
ownership to HUMC Holdco LLC be approved.
“HUMC operates in a dire financial position and is dependent on
continued State subsidies to cover operating expenses.  The change of ownership to HUMC Holdco LLC,
an entity with private capital and a proven track record,  offers the best opportunity for the
hospital’s long term financial stability and sustainability, as well as quality
enhancement and new program development,” Tomarazzo adds.  “This sale is in the best interests of our
City and what we’ve worked long and hard to achieve.”
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