CarePoint Health announced Monday that a new community-based nonprofit, CarePoint Health Systems, now owns a majority interest in the system’s three safety-net hospitals in Hudson County: Christ Hospital in Jersey City, Hoboken University Medical Center and Bayonne Medical Center.
CarePoint officials said the transition was made possible after Vivek Garipalli donated his majority interest in the three hospitals. The dollar value of that donation — and any agreement that came with it — could not be determined.
The formation of the nonprofit, which is led by CarePoint CEO Dr. Achintya Moulick, was originally announced in October 2021. CarePoint officials said its funding will allow CarePoint Health to maintain critical care for Hudson County’s underserved populations.
CarePoint officials said an official announcement of new board members and the nonprofit’s mission statement will follow.
Garipalli, in a statement, said he has withdrawn his involvement from the operating control of the hospitals and donated the entirety of his ownership interest to the new nonprofit — and that he has full faith in Moulick and the newly formed nonprofit to care for, sustain and grow the hospital system moving forward.
“The COVID-19 pandemic has only underscored the importance of equitable access to health care, and I’m beyond proud that the three hospitals have been able to serve the community during the biggest health care challenge of our lifetime,” Garipalli said. “So far, Dr. Achintya Moulick and his team have treated approximately 25,000 patients, vaccinated over 75,000 residents and tested nearly 90,000 people, and, because of their efforts, were recently recognized and commended by the Hudson County board of county commissioners for their outstanding commitment to excellent health care and service to the community’s residents.
“I’m honored to be leaving the health care system in the hands of a physician leader and diverse management team greatly experienced in working with our minority patient population. While this donation is the official end to my ownership of CarePoint Health, I look forward to cheering from the sidelines as the newly formed nonprofit continues to care for, sustain and grow the hospital system to provide equitable care in Hudson County for many years to come.”
Moulick applauded the announcement.
“We are all eternally grateful that CarePoint Health’s hospitals have been preserved through the years with an unwavering commitment to serve the community, especially during the COVID pandemic where hundreds of thousands of residents received treatment and care,” he said in a release.
“This transition will allow our teams to continue to provide advanced and equitable care to the diverse, minority populations across the Hudson County community. Through the number of partnerships and initiatives over the last two years, we have built an advanced health care system as a leader and innovator in medicine with much more to come.”
CarePoint Health employs over 3,000 people in Hudson County and continues to care for a population that is 80% African American and Hispanic, with a high percentage of uninsured and Medicaid patients, especially at Christ Hospital and Hoboken University Medical Center, where they make up approximately 60% of the current patient mix. The transition to nonprofit control opens up a wide array of opportunities to support Hudson County’s underserved patients moving forward.
Nonprofit-controlled hospitals are exempt from certain taxes and receive certain regulatory benefits. Additionally, not-for-profits can receive tax-deductible contributions from the community and other benefactors.
“Our goal through doing so is to ensure that these hospitals can continue to operate and that they stay with the community,” Garipalli said.
