Not only has Federal Bankruptcy Court Judge Morris Stern tentatively approved the sale of the hospital to IJKG, city officials say another offer might be on the table from an Allentown, Pa., firm
"We don't know if it is a real offer or not," said Councilman Gary La Pelusa, who, along with Councilman Anthony Chiappone, has led the City Council's efforts to rescue the hospital. "But we're supposed to go out there to talk to the people this week."
While La Pelusa did not disclose the name of the group, Mary Jane Desmond, spokesperson for the Coalition to Save Bayonne Medical Center, said she had spoken to members of the group previously.
"The Allentown group has been around for awhile. It is a group of physicians," she said. "I spoke to them the last two times we went to court. But, I have never seen a proposal or financial papers."
Meanwhile, Daniel Kane, acting chief executive officer for BMC, said the sale to IJKG has been approved by the court with the deadline for providing the financial particulars due to be presented to the court on Nov. 27.
BMC declared bankruptcy earlier this year after several attempts to secure credit failed.
Several attempts to sell the hospital have previously run into problems, although Judge Stern finally agreed to accept IJKG's offer, even though Stern rejected it a month ago.
IJKG - a healthcare company - has offered $18.8 million for the hospital along with picking up a majority of the hospital's $17 million debt.
"We showed the court that we are making progress, and moving forward toward a change of ownership," Kane said. "IJKG has agreed to continue the hospital as an acute care facility."
IJKG also has received the blessing of the hospital workers' union membership, who earlier this year also put off raises and other concessions to help the hospital finances.
Operating funds are a problem since the hospital is losing about $600,000 a week, a figure IJKG believes it can reduce significantly leading up to the closing on the sale.
While the City of Bayonne has agreed to continue its offer to supply the hospital with $6 million to meet these expenses, the delays in the sale had put a $2.5 million loan from the State of New Jersey at risk.
Kane said the state has agreed to extend the deadline until Nov. 27, so that if the sale takes place as expected the funds from the city and state will cover most of the cost of operating the hospital until the sale closes at the end of the year.
"We're working closely with IJKG," Kane said "We want to make this happen. We believe this is a great deal for Bayonne Medical Center."
Kane, however, did admit that saving BMC has been an emotional roller coaster.
Although Fortis Realty Group has since claimed it made no offer on the hospital, some believe the deal by Urban Suburban for $32 million may have fallen through because the hospital property has a deed restriction on it.
Alice B. Bowland, who donated most of the land under BMC in 1980, put into the deed restrictions saying that the property must be used for a hospital.
"It's not all the land, but it is the land with most of the buildings on it," Desmond said. "This means the land can't be turned over for real estate development."
Combined with the expected sale, BMC may be passed over for closing by Gov. Jon Corzine's commission on acute care facilities. Reports suggest that the state may seek to have two of Hudson County's seven acute care facilities closed.
Also good news for BMC was the fact that the State of New Jersey's Department of Health and Senior Services Health Care Administration Board (HCAB) ruled in early November in favor of the final adoption of proposed regulations that will enable New Jersey's participation in the elective angioplasty study to continue.
BMC is one of nine New Jersey hospitals participating in a national demonstration project being conducted by Johns Hopkins to compare the outcomes of patients treated with elective angioplasty at hospitals with cardiac surgery on-site versus hospitals that have off-site cardiac surgery back-up.
Post a Comment