Hoboken, NJ-based St. Mary's Hospital isn't in great shape. It lost almost $100 million over the last five years and seldom fills more than half of its 328 beds. Worse, as the oldest hospital in the state, it needs millions of dollars worth of upgrades and renovations. But when the hospital's owner, Bon Secours Health Care System, said it would close St. Mary's, state legislators worked out a plan to keep it afloat by funneling in state funds and turning over operations to the city. The reconstituted hospital would be run by former board chairman of the University of Medicine and Dentistry of New Jersey (perhaps a questionable choice given that UMDNJ is currently under federal supervision for Medicaid fraud and tax issues). Supporters of the new plan say that it can work, in part, because making the hospital public will make it eligible for millions of dollars in federal and state funds. But Hoboken must also pick up part of the tab by guaranteeing a $52 million bond issue to upgrade the hospital, a step that would double the city's debt. The city and state have yet to vote on the bond plan.
To get more information on the plan:
- read this article in The New York Times