CarePoint Health Systems, based in Jersey City, N.J., filed for Chapter 11 bankruptcy on Nov. 3 to continue operating its facilities while financially restructuring.
Here are five things to know:
1. The organization secured $67 million in new funding aimed at preserving patient care and maintaining open hospitals during the transition.
2. The health system includes Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken University Medical Center, which collectively serve over 60% of Hudson County’s population. Around 65% of CarePoint's patients are uninsured or underinsured.
3. CarePoint is also advancing plans to affiliate with Hudson Regional Hospital in Secaucus, N.J., under the management of Hudson Health System. Hudson Regional, which already owns Bayonne Medical Center, will acquire Christ Hospital and Hoboken University Medical Center through this partnership.
4. CarePoint has assured employees that their salaries and benefits will be maintained throughout the reorganization. The decision to file for bankruptcy stems from several factors, including limited state funding, reimbursement issues and rising operational costs exacerbated by the COVID-19 pandemic.
5. Achintya Moulick, MD, has been appointed as CarePoint's chairman and CEO.
"We pursued this path only after thoroughly exploring all options to sustain uninterrupted care while restructuring financially," Dr. Moulick said in the release. "Safety-net hospitals like Christ Hospital and Hoboken University Medical Center are critical for the uninsured, underinsured, and vulnerable populations. We are proud to have remained operational over the last five years despite a highly challenging environment."