But LibertyHealth showed little interest in the city's $1.5 million offer, as expressed in a letter addressed to Mayor Healy from Brett Harwood, chairman of the LibertyHealth Board of Trustees, last week.
"Please be aware that existing debt instruments and guarantees prohibit Liberty from taking on any additional debt...," stated Harwood in the letter.
Then, on Friday, LibertyHealth sent out two more letters. One went to the city to officially state that they cannot accept the $1.5 million, and one to the State Health Planning Board asking that they hear LibertyHealth's application to close the hospital at an upcoming meeting.
LibertyHealth Systems has looked to close the facility since April, citing an annual $3 million deficit.
LibertyHealth also claims a duplication of medical services is offered by the Jersey City Medical Center, the other Jersey City hospital it operates.
Last week, officials said that LibertyHealth still wants to close the hospital, for those reasons.
Greenville Hospital is located on Kennedy Boulevard in the southern part of Jersey City.
The council resolution, approved at the behest of Mayor Jerramiah Healy, would either be a loan that would be paid back over a five-year period from the proceeds of any sale of the hospital to a new owner, or if LibertyHealth did not agree to a loan, then the money would be in the form of a grant.
Healy said that if the hospital stayed open for six months, the city would use that time to pursue potential purchasers who would keep it as a hospital.
Healy said, "Greenville Hospital is located in a rapidly developing area of the city and a medical, surgical, or hospital facility is critical for the residents of the area."
The "potential purchasers" Healy referred to are five potential buyers that have expressed interest in Greenville Hospital, according to Deputy Mayor Kabili Tayari.Council votes with concerns
While they voted in favor of the money on Wednesday night, some on the council expressed concerns.
City Councilman Michael Sottolano said he hoped LibertyHealth would accept the $1.5 million in loan or grant form to keep the facility open, as it shows the "goodwill partnership" that the city wants to enter into with LibertyHealth.
Councilman Steven Fulop said he hoped the $1.5 million would be followed by financial help from Gov. Jon Corzine to keep Greenville Hospital afloat, just as the governor offered to help save Bayonne Medical Center and St. Mary Hospital in Hoboken (now Hoboken University Medical Center).
Councilwoman Viola Richardson, who headed the coalition number of public officials that moved to save Greenville Hospital, struck a cautious note, worried that the loan or grant will not be accepted by LibertyHealth.
"I am going to vote for this as is tonight, but what I don't want to happen is ... three months runs out and they are able to back out of the deal, that is my only concern," Richardson said.
Business Administrator Brian O' Reilly said he will "do the best he can" to get a commitment from LibertyHealth. But it turned out Richardson had reason to be concerned. LibertyHealth not so sure
LibertyHealth spokesperson John McKeegan said that the letter from Harwood and the two Friday letters only confirmed LibertyHealth's stance that they want to close the hospital.
"Nothing has changed on LibertyHealth's position on Greenville Hospital," McKeegan said. "There was already a lot of discussion on why LibertyHealth is closing the hospital, such as the duplication of services and the community was not using the facility."
McKeegan also said LibertyHealth took the position "the longer the hospital stays open, the longer it is pulling resources from their other hospitals."
He commented the board made up its mind about turning down the money when as the reorganization of the LibertyHealth Board of Trustees took place Thursday night.
At that meeting, the board elected Lynn Schundler, as the new chair. She is the wife of former Jersey City Mayor Bret Schundler and has served on the board since 1997. Two new board members were also elected. Sidebar Shame, shame, shame
Jersey City Councilwoman-At-Large Willie Flood was at City Hall for Wednesday's City Council meeting. But she took an early exit before it even started.
According to an article in the local daily newspaper, Flood and her son were greeted before the meeting by Fox news reporter Arnold Diaz and his cameraman.
Diaz came to pose questions to Flood about the recent hiring of her son, Phillip Flood II, to positions of City Council aide and data processing systems programmer in the Hudson County Register's office, which his mother heads. The article said it was for a future "Shame on You" segment on TV.
Diaz later hung around City Council Chambers asking Flood's colleagues questions, since Flood did not return to the council meeting.
Flood was unavailable for comment when a call was placed to the County Register's office. - RK Comments on the story can be sent to rkaulessar@hudsonreporter.com.
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