CarePoint Announces Sale Of Hoboken And Christ Hospitals

HOBOKEN, NJ — A California-based management company has signed a letter of intent to purchase Hoboken University Medical Center in Hoboken and Christ Hospital in Jersey City Heights from CarePoint Health, both parties announced in a press release this week.

The joint release said: "KPC Global proposes to purchase the equity of HUMC-OPCO, LLC and Hudson Hospital-Opco, LLC — the two entities that operate Hoboken University Medical Center and Christ Hospital — as well as the two hospitals’ affiliated physician practices and assets of CarePoint Health’s management services organization and physician practice management business that serve the two hospitals."

The parties said they expect the transaction to close quickly, but the state Department of Health and others have to approve it.

"The intent of the transaction is to keep both hospitals as acute care hospitals maintaining our commitment to the nurses, physicians, employees and the residents as our priority," said the release. "This past year has revealed more than ever the importance the hospitals serve for their communities in providing quality care and responding to the challenges presented by the global pandemic."

Earlier this year, Hudson County officials were concerned over whether CarePoint's three hospitals could stay afloat, and would be kept as hospitals rather than sold to developers. Christ Hospital, a facility more than a century old, is up the hill from Hoboken and sits on valuable real estate. (READ MORE: Officials Fear Closure Of Hoboken, Jersey City, Bayonne hospitals)

But what about Bayonne?

Bayonne Medical Center

"While the transaction does not include Bayonne Medical Center, the third hospital under CarePoint Health management, KPC Global is interested in structuring a transaction that satisfies the stakeholders at all three facilities, including its leaseholders," says the release. "Under the currently contemplated transaction, KPC Global would assume the hospital leases as is, subject to the real estate owners’ consent. KPC Global has also expressed its willingness to partner with the current owner of Bayonne Medical Center (CarePoint Health) and future owner of Bayonne Medical Center. KPC Global and CarePoint Health are committed to a successful transition in ownership and believe this transaction will enable the continuation of the highest level of care for Hudson County residents."

The release noted that the facilities would remain hospitals: "Building on its foundation in Southern California and in six other states, KPC Global views this acquisition as an opportunity to continue its current growth strategy. CarePoint Health would be the first of many partners in the region as KPC Global continues to grow across the United States. KPC Global and CarePoint Health have discussed plans to build and expand clinical services at the CarePoint Health facilities. The parties share a vision for the hospital system and are eager to move forward.

"Those plans in motion include a stroke center, advanced heart care unit, center for sports medicine, obesity center, center for heart burn, metabolic diseases center, spine center, and center for robotics. These clinical services will ensure a long-term prosperous future for the essential, local hospitals and for the residents of Hudson County."

Read prior reports:

• Officials Want To Avoid Closure Of Hudson County Hospitals
• Judge Tosses Restraining Order In Hudson County Hospital War

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