The New Jersey Department of Health has given the green light for two CarePoint Health hospitals to transition to a nonprofit entity, but the third is still pending review, nj.com reported March 29.
Hoboken University Medical Center and Bayonne Medical Center can convert to nonprofit status, but they must follow several DOH stipulations related to issues such as financial transparency and patient care.
A CarePoint spokesperson told nj.com that he expects a decision to be reached on the status of Jersey City-based Christ Hospital in the coming days.
CarePoint transitioned into a nonprofit organization in 2022 after co-founder Vivek Garipalli donated his majority interest to the nonprofit. CarePoint said the move will allow it better serve its patients, many of whom are uninsured and on Medicaid.
DOH Commissioner Judith Persichilli noted that CarePoint violated state regulations when ownership of the hospitals were donated to the newly formed nonprofit without the commission's approval. The commission will consider further action in a separate review.
The CarePoint board includes current CEO Achintya Moulick, MD; former CFO William Pelino; and former CIO Ryan Meeuf. Under the approval terms, three community members — one to represent each hospital — will be added to the board, according to the report.
The approval for nonprofit status of Bayonne Medical Center would also pave the way for the sale of a further 39.1 percent of CarePoint to BMC Hospital, which would bring the healthcare operator's share to just under 50 percent, according to nj.com.