HUMC Takes Step Towards Privatization

The Hoboken Municipal Hospital Authority unanimously approved a Request for Proposal to solicit plans for the potential transfer of the hospital from city auspices during its meeting on Wednesday night.

Responses to the RFP are due back within a specified time frame, and an ad hoc committee—which members will include commissioners, physicians, and hospital staff—is being formed to review the submissions.

The RFP will be posted shortly on the HUMC web site, as well as the city's web site, said City Spokesman Juan Melli.

"I congratulate the commissioners for moving us towards the shared goal of ensuring that the hospital remains in Hoboken as a thriving acute care facility that provides valuable services and jobs to our community," said Mayor Dawn Zimmer in a statement. "Privatization will bring us one step closer to stabilizing our hospital's finances and removing Hoboken taxpayers from the $52 million bond guarantee." 

A few months ago Zimmer addressed the board of commissioners, urging them to hire outside legal counsel to assess the hospital's financial situation. At that meeting the hospital's CEO Spiras Hatiras responded to Zimmer's speech by saying: ""You're wrong, mayor. You're dead wrong." Afterward, the board of commissioners approved to hire the counsel. 

Mayor Zimmer inherited a complex set of legacy hospital issues and "has aggressively addressed them," said Authority Chairperson Toni Tomarazzo. "The mayor developed a consensus around privatization as a shared vision for maintaining access to hospital care, and making quality metrics as important as financial performance."

In January, a memorandum prepared by Gov. Chris Christie's transition team said that HUMC was in danger of closing. Officials have urged since then that the hospital stay open. 

HUMC was among nine hospitals that received $40 million in funding from the Corzine Administration in December 2009. The HUMC received $7 million. 

The city is soliciting resumes from Hoboken residents interested in filling a recently-vacated Authority position. Applications are available from the City Clerk's office at 201-420-2070 or j.lore@hobokennj.org.