BAYONNE, NJ - In what could be a major blow to the hopes for the purchase of Bayonne Medical Center operations by BMC Hospital LLC, the New Jersey Department of Health denied a request to expedite the sale.
While this means BMC Hospital LLC and CarePoint Health, will have to go through a much lengthier process of approval for their proposed transaction, the buyer said the decision was strictly a “procedural move.”
Not only does it “not change the overall direction of BMC Hospital LLC to acquire the hospital,” David Klucsik said, BMC took the next step almost immediately by filing a Certificate of Need (CN) application with the same Department.
BMC Hospital and CarePoint have argued that the hospital is in dire fiscal shape. CarePoint claims Bayonne Medical Center has lost $30 million over the last two years. Critics, however, noted that CarePoint owners took out more than $175 million in profits last year before putting this and the two other hospitals it owns on the market.
BMC Hospital LLC and Hudson Regional Hospital (HRH)l in Secaucus both bid for the purchase. When CarePoint opted to sell to BMC Hospital LLC, Hudson Regional brokered a deal to purchase the property with Avery Eisenreich, owner of a chain of nursing homes, who purchased the properties in 2019.
This put HRHl in a position to oppose awarding the bid for operations to BMC Hospital LLC, and to take over the operations itself.
“We believe owning the property puts us in a better position to provide services,” said Ron Simoncini, a spokesperson for Hudson Regional, who believes the state will continue to deny BMC Hospital’s application because it does not control the property on which the hospital stands.
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