State calls on CarePoint Health to come up with disaster plan in case of closures
CarePoint Health is being called out by the New Jersey Department of Health. Financial problems within the three hospitals that make up the system have the state demanding a disaster plan be delivered.
However, the hospital system was quick to respond that the three sites were not at risk of closing and that patients and staff should not worry.
The three hospitals that make up CarePoint Health include Bayonne Medical, Christ Hospital in Jersey City and Hoboken University Medical Center.
The disaster plan was needed because the Health Department says these facilities are at risk of further financial deterioration. They were given a Notice of Order.
It states, “The Department found that the hospitals have consistently maintained low days cash on hand, maintained negative operating margins, and a high number of days in accounts receivable.”
The DOH says that in the case there was ever an abrupt closure these hospitals must include some details as part of that disaster plan. Those would include, a list of hospitals for relocating patients, emergency procedures for evacuating patients, and plans in case there’s an interruption in utilities.
CarePoint Health issued the following statement: “It is absolutely, categorically false to claim that any of [our hospitals] are at imminent risk of closing, and doing so only creates unnecessary stress on the dedicated physicians and staff working hard every day to provide high-quality care to vulnerable Hudson County residents.”
One reason cited for financial shortfalls is a high number of charity care, Medicaid and homeless patients. Since the start of the COVID-19 pandemic, CarePoint says it has served 60,000 charity patients, 200,000 Medicaid patients and accepted 12,000 homeless patients. CarePoint is a nonprofit and officials say the solution is increased state funding. It says it is now up to Trenton legislators to decide how much money CarePoint will receive.
CarePoint says it received $10 million in state funding in 2023. It is requesting $100 million for operation.