HOBOKEN -- Hoboken University Medical Center Chief Financial Officer Ron DeVito resigned Wednesday, two days after after an audit revealed that poor financial practices resulted in accounting overstatements, according to CEO Spiros Hatiras.
DeVito was part of the team former CEO (and current consultant) Harvey Holzberg brought in when the hospital was purchased from Bon Secours on the backing of taxpayer bonds in 2006.
But operational audits in 2007, 2008, and 2009 revealed a lack of fiscal controls and good business practices. Holzberg's staff never submitted corrective action plans to address the shortcomings highlighted in the audits, according to this year's report.
After addressing the some of the comments in this audit and recalculating their numbers using "newer methodologies," the hospital reports losses of $22.3 million, a reducion in net assets from $35.1 million in 2007 to $13.4 million in 2008.
Hatiras, who took over Holzberg's post in June, said his administration forsees less than half of those losses this year, and has charged his staff with creating a break-even budget in 2010.
He said the hospital will take $1.2 million off the books this year with the resignation of DeVito and the expiration of Holzberg's consultant contract on Dec. 31.
Hatiras said he does not forsee more layoffs. HUMC laid off 5 percent of their staff in January, and Hatiras said overtime has spiked as a result, greatly reducing the amount of savings.
See this weekend's Hoboken Reporter for more on the story. -- TJC
Public option health care is the only way to force real competition. I'll make this example easy for most of Hoboken residents to understand. Look at your Cablevision bill each year. How much has it gone up in the past 5 years. Its absolutely rediculous what you have to pay for TV service. Reason for this is we had no real competition. Verizon Fios priced their plan on par w/ Cablevision. How is that competition. Its now just 2 providers overcharging for the same service. Your insurance provider is doing the exact same thing. Its called collusion although you'll have a hell of a time proving it in court. Let the government at least try to put in place some real competition. Corporations are only in the business to make profits not save you or I $$.
Nevertheless the council was sold a bill of goods with the hospital and did not ask enough questions. Hoboken should not be in the healthcare buisness. You have to wonder if some type of fraud was not committed. In the meantime we are going to be left with a big mess and a mountain of debt.
Government shouldn't be in the healthcare business.
Government can barely do what it is supposed to do.
Mayor Roberts wanted to take credit for saving the hospital, where is he now that there is blame to be taken?