Hudson Regional Hospital Acquires CarePoint Health's Portfolio, Marking End of Bankruptcy

Hudson Regional Hospital has successfully acquired the operations of CarePoint Health's three hospitals, following approval from a U.S. bankruptcy court. This development marks the end of CarePoint's Chapter 11 bankruptcy process and sets the stage for the creation of a new healthcare entity in New Jersey.

CarePoint's Financial Struggles and Bankruptcy

CarePoint Health, a New Jersey-based nonprofit health system, filed for Chapter 11 bankruptcy protection in November, citing a dramatic increase in operating costs following the COVID-19 pandemic, insufficient state funds, and reimbursement challenges. The health system had been grappling with financial difficulties for years, accumulating approximately $165 million in debt and facing 53 pending lawsuits at the time of filing.

Prior to the bankruptcy, CarePoint had threatened to lay off 2,600 workers and received warnings from New Jersey regulators about potential facility closures due to poor financial performance. These circumstances ultimately led to the search for a strategic partner to stabilize the organization's operations.

Hudson Regional's Acquisition and Future Plans

Hudson Regional Hospital emerged as the front-runner in the bankruptcy proceedings, providing at least $25 million in debtor-in-possession financing to keep CarePoint's operations afloat during the restructuring process. The acquisition deal grants Hudson Regional Chairman Yan Moshe ownership of Bayonne Medical Center's operations and real estate, as well as operational control of Christ Hospital and Hoboken University Medical Center.

Hudson Regional plans to rebrand CarePoint's hospitals and create the Hudson Health System, a vision first conceived in January 2024. The company has committed to investing in the development of CarePoint facilities, with upgrades already underway at Bayonne Medical Center. These improvements include a remodeled emergency department, new radiology department, and the restoration of a graduate medical education program to reestablish the facility as a teaching hospital.

While the full purchase price of CarePoint's operations has not been disclosed, the New Jersey Department of Health previously approved Hudson Regional's acquisition of Bayonne Medical Center for $13 million. Hudson Regional intends to eventually purchase the real estate of Christ Hospital and Hoboken University Medical Center from hospital landlord Eisenreich Avery, emphasizing the importance of common ownership for both property and operations.