Dear Editor:

As Chair of the Hoboken Municipal Hospital Authority, I write to share with your readers information about the Authority’s vote to authorize the transfer of ownership of Hoboken University Medical Center (HUMC) to HUMC Holdco LLC, an entity whose principals have common ownership with nearby Bayonne Medical Center. This is truly a significant milestone for our community. The transfer ensures that HUMC will remain open as a full-service, acute-care, community hospital for at least seven years while retaining jobs in the City of Hoboken. Not only will the Hospital continue to provide quality healthcare to the residents of Hoboken, but the agreement will relieve City taxpayers of the significant obligations associated with HUMC’s $52 million bond guarantee. The total value of the transaction is approximately $91.7 million, including an agreement that HUMC Holdco will pay in cash the full outstanding balance of the $52 million bond obligation guaranteed by the City of Hoboken. HUMC Holdco will also assume additional liabilities and has earmarked more than $20 million for investment in HUMC. The City of Hoboken will not receive any funds as part of the transaction. The terms of the agreement will ensure the preservation of existing jobs at the Hospital. Additionally, HUMC Holdco’s future development plans include an on-site long-term care facility, on-site assisted care facility, and new medical offices, which could potentially create new job opportunities for the City. Employees of the City of Hoboken, the Hoboken Board of Education, and the Hoboken Housing Authority will continue to be covered under the self-insurance policy currently in place. The process to identify a potential buyer for the Hospital has been ongoing for nearly a year after an analysis of Hospital finances showed that the only hope for long term viability was a strategic partnership. The Authority's Request for Proposals (RFP) process included significant input from the community and set forth clear objectives to maintain the facility as an acute-care hospital, to preserve jobs, to continue the valuable working relationship with the medical staff of the Hospital, and to relieve the City of Hoboken of its bond guarantee obligations. This agreement meets those objectives and, best of all, ensures that the Hospital remains open for City residents. Once signed, a review by the New Jersey State Department of Health and Senior Services and open public meetings will be held. We are optimistic that we will be able to proceed quickly on this path and secure the future of our Hospital.

Sincerely,

Toni Tomarazzo,

Hoboken Municipal Hospital Authority Chair