Jersey City, N.J.-based CarePoint Health Systems filed for Chapter 11 protection on Nov. 3.
CarePoint has secured $67 million in new funding to avoid interruptions to patient care and ensure its hospitals remain open, according to a Nov. 3 news release.
The system includes Bayonne (N.J.) Medical Center, Jersey City, N.J.-based Christ Hospital and Hoboken (N.J.) University Medical Center. Its hospitals provide care to more than 60% of Hudson County's population. Moreover, up to 65% of its patients are uninsured or underinsured, the release added.
CarePoint is also moving forward with plans to affiliate with Hudson Regional Hospital in Secaucus, N.J., under management services organization Hudson Health System. Hudson Regional already owns Bayonne Medical Center, and will acquire its other two properties under the partnership agreement.
CarePoint has taken steps to ensure employee salary and benefits will continue amid the financial restructuring, according to the release.
The decision to file for Chapter 11 was driven by insufficient state funding, reimbursement challenges and an increase in hospital operating costs after the COVID-19 pandemic, the release said.
Achintya Moulick, MD, will serve as chairman and CEO of CarePoint, the release said.
"We chose this path after we thoroughly evaluated all available options that would ensure the continued delivery of uninterrupted care while enabling this necessary financial restructuring," Dr. Moulick said in the release. "Safety-net hospitals like Christ Hospital and Hoboken University Medical Center are vital lifelines for the uninsured, underinsured and most vulnerable populations. We are proud to have kept our doors open these past five years despite an extremely challenging environment."