Yet another theft....

On behalf of Medicare for All-NJ, a coalition advocating Improved and Expanded Medicare for All (cradle to grave universal health coverage), I write to express our outrage over the proposed sale of St. Mary’s Hospital in Passaic to the California profit-first hospital conglomerate, Prime Healthcare Services.

Last month, National Nurses United released a report showing the most expensive hospital in the US is Meadowlands Hospital in Secaucus, NJ which inflates charges by a staggering 1,192% of costs.  Coincidentally, Meadowlands Hospital was purchased by a private equity, profit-first group in 2010.    Number six on the list, over-charging patients by 1,084% of costs, is Bayonne Medical Center in Bayonne, NJ, also purchased in recent years by a private equity group.

Further, my own investigation, “The Basically Bogus Bankruptcy of Hoboken University Medical Center” which details how this nonprofit hospital was bought in 2011 at a fire sale by a the same private equity group who purchased Bayonne Hospital without the scrutiny of state or federal agencies demonstrates how easy it is for those in charge to confuse the public by obfuscating the true nature of the financial activities of an otherwise healthy organization and effectively dismantle and confiscate that organization for their own agenda. 

According to IRS Form 990s filed by Saint Mary’s Hospital, as of 12/31/2010 (no filings are available after this year), the hospital had a net income exclusive of depreciation of almost $9 million on revenue of $178 million.  A red flag occurs in the years 2008 thru 2010, where “office expenses” totaled almost $100 million or 20% of total costs.

Even more disturbing is how the employees of St. Mary’s Hospital are being terrorized (“scared, nervous, holding their breaths” Star Ledger 2/22/14) over this sale under the (always and ever-looming) threat of layoffs.

Medicare for All-NJ believes health care is a human right, not a business open for abuse and profiteering.  We demand (1) the employees of Saint Mary’s Hospital be protected from any and all employment downsizing or termination and (2) an independent audit conducted into the last 10 years of financial activities of Saint Mary’s before it is lost to the wolves of yet another private equity conglomerate intent on protecting profits over the health and well being of people’s lives.

Lynn M. Petrovich, CPA MBA

Co-Founding Member, Medicare for All-NJ

Founder, CPAs for Community Support