California-based KPC Global Management signed a letter of intent last Wednesday with CarePoint Health to take over the operations of two of its Hudson County hospitals: Hoboken University Medical Center and Christ Hospital in Jersey City. KPC also said it would be interested in taking over operations of the third, Bayonne Medical Center.
If only it were that easy.
KPC Global is just the latest player to enter the Hudson County hospital game — one where numerous entities are fighting for position. One of those entities, Hudson Regional Hospital, made the situation a little more interesting last Thursday.
Hudson Regional, which owns the Bayonne Medical Center property and has a contract to purchase the Hoboken University Medical Center property, announced it had terminated CarePoint’s lease as operator of Bayonne.
Ultimately, Hudson Regional Hospital would like to own and operate both the Bayonne and Hoboken hospitals.
“We intend to enforce the conditions of the lease for Hoboken University Medical Center, as we have Bayonne Medical Center to assure that the operator is financially and professionally fit to run a high-performing acute care program at our property,” Yan Moshe, chairman of HRH, said in a release.
CarePoint Health CEO Dr. Achintya Moulick only addressed the potential sale to KPC Global in a release.
“This potential transaction is an ideal opportunity to sustain the acute care hospitals in the CarePoint Health System,” he said in the release.
KPG Global, which has locations in seven states, said it views this acquisition as an opportunity to continue its current growth strategy.
Dr. Kali Chaudhuri, the founder and chair of KPC Global, said, “We are excited and eager to move forward with this acquisition and expand the quality of services of health care for the residents of Hudson County.”
While both CarePoint and KPC said in the release that they expect the transaction to close quickly, don’t count on that. All transactions must be approved by the Department of Health.