Here's What Gov. Murphy Is Doing To Fix NJ's 'Failing' Hospital

Gov. Phil Murphy has signed an executive order to fix a New Jersey hospital that routinely gets failing or "D" grades every year and just had its bond rating downgraded.

Murphy has signed an executive order directing the state health commissioner to install a monitor to review expenditures and assess the level of care provided at University Hospital in Newark.

The order was in response to a series of concerns regarding the quality of care and the financial health of the institution, according to the Murphy administration.

The hospital routinely is the only New Jersey hospital that gets failing grades on quality of care from the Leapfrog Group, which releases a nationwide hospital safety analysis every year for local health facilities

In the most recent survey released in April, University Hospital received an F. The hospital was reported to have a variety of problems related to infections, surgery and doctors, nurses and hospital staff, according to Leapfrog. Last fall, it received a D.

Read more: Here Are NJ's Safest Hospitals In 2018, And The Worst

The hospital also had its bond rating downgraded four notches because of financial difficulties, and attempted to reduce the number of pediatric beds without state approval.

“Given the scope of the problems found at University Hospital, these immediate actions are necessary to ensure the facility can continue providing the highest level of care to the community while it gets its fiscal house in order and improves its health care quality,’’ Murphy said.

John Kastanis, CEO of University Hospital, provided this statement:

“In the last several years, University Hospital has taken a variety of steps to address financial challenges while providing access to high-quality care for all patients. The hospital has made changes to its administrative and clinical leadership, and diligently implemented new programs focused on patient safety and quality of care. We recognize there is much work left to be done and look forward to working collaboratively with Ms. Persichilli, as well as our state and local elected officials and regulatory agencies, to accelerate progress at University Hospital.”

"I have been very concerned about the quality of care at the hospital," he said, as well as "their attempt to reduce the number of pediatric beds without consulting myself or the governor, and the failing grade they received on their level of care from the Leapfrog group."

"The appointment of a monitor will assure that University Hospital gets its house in order,” he said.

Health Commissioner Dr. Shereef Elnahal appointed veteran health care executive Judy Persichilli to serve as monitor, with broad authority to assess the level of care provided by the hospital and to gain a deeper understanding of the financial affairs of the Hospital.

“University Hospital provides critical services for the residents of Newark,” Elnahal said. “I look forward to working toward substantial improvements in the quality of care delivered, and in putting the hospital on a path to operational and financial stability.”

In July 2018, Fitch Ratings downgraded the bonds to “BB-,” citing the hospital’s pension liability, “weak leverage profile,” and “thin operating performance” as the basis for this lowered rating.

The hospital also took steps to dramatically reduce the number of early pregnancy beds on site and transfer those services to Newark Beth Israel Medical Center. These "unauthorized steps" jeopardized care for pediatric patients and threatened the hospital’s ability to provide essential health care services for surrounding communities, according to state officials.

Persichilli is president emerita of CHE Trinity Health and previously served as the interim president and chief executive officer of CHE Trinity Health.

Persichilli received her nursing diploma from the St. Francis Hospital School of Nursing in 1968, a bachelor of science in nursing summa cum laude from Rutgers University in 1976, and a master of arts in administration summa cum laude from Rider College in 1980. She has received an honorary doctor of health degree from Georgian Court University and an honorary doctor of humane letters from Sacred Heart University in Fairfield, Conn.

University Hospital is one of three Level I trauma centers in the state. In the FY19 budget, the hospital will receive more than $43.3 million based on the number of state funded staff, which is more than 2,900 employees. It receives another $10 million for a self-insurance Reserve Fund.

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