Positive signs of the new ownership are already evident
in significant patient and revenue increases

Hoboken, Feb. 7 – In a ceremonial handing over of keys today, the ownership of St. Mary Hospital in Hoboken was transferred from the private Bon Secours New Jersey Health System (BSNJHS) to the City of Hoboken. To reflect a new beginning for the 144-year-old hospital, it was given a new name: Hoboken University Medical Center (Hoboken UMC).

Hoboken Mayor David Roberts accepted the keys from Sr. Rose Marie Jasinski, Board President, BSNJHS, in the ceremony that took place at the hospital.

“This is a very important day for the City of Hoboken and surrounding communities who still have an acute care medical facility to take care of the health care needs,” said Mayor Roberts. He added that it was “a very proud day for all of the people who worked tirelessly to keep the hospital open.” The two-year effort culminated in the creation of new state legislation enabling the private-to-public transfer and the Hoboken Municipal Hospital Authority to own and operate the hospital.  

“I would like to say thank you to the Sisters of Bon Secours who transferred the hospital, property and all its equipment to the Authority debt-free,” said CEO Harvey Holzberg, who took the reins of the hospital last summer. Holzberg has a track record engineering successful hospital turnarounds that is second to none. Most notably, he led the transformation of the financially struggling Middlesex General Hospital into the nationally–renowned Robert Wood Johnson University Hospital. “Without their patience and support this transfer would not be happening today,” added Holzberg.

“Our goal now is to turn Hoboken University Medical Center into a state-of-the-art medical facility committed to compassionate care,” said Holzberg.

“We are changing more than our name.” Holzberg promised. “We have plans for a new state-of-the-art Emergency Department. We are adding even more medical specialties and expanding our teaching affiliation with the State’s top universities.”

Funding for these improvements will be derived in large part from a $52 million bond that will also provide initial working capital and an operating reserve fund. As a public hospital, Hoboken UMC will also be eligible for increased State and Federal reimbursements.

But, even before receiving any of these additional funds, Hoboken University Medical Center appears to be well on the road to a remarkable recovery. Overall, the average daily census rose by more than 23% in 2006 (154 vs. 125 in 2005). Over the three-month period ending Nov. 30, 2006, revenues increased an impressive $6 million, compared to the same period in 2005. Admissions in December were up 35% leading to a profit of $400,000 compared to a $1.8 million loss the previous December.

“Plus, we’ve had virtually no employee attrition which is remarkable under the circumstances,” noted Holzberg. “It’s a sign that everyone believes in our future.” In fact, if the present is any sign of what’s to come, Hoboken University Medical Center is well on its way to a very bright future. 

About Hoboken University Medical Center and the community it serves.
Hoboken University Medical Center is a 328-bed facility located in the heart of Hoboken.  It is the oldest continuing hospital in New Jersey, and it possesses some of the area’s best doctors and nurses, the latest in medical technology, and a host of medical specialties to treat people of all ages and ailments. Many capital improvements, including new services and equipment, will be added in 2007 and beyond.