Bankruptcy court Judge Morris Stern has accepted Pennsylvania-based Hudson Holdco's $43.5 million bid for Christ Hospital, according to a Jersey Journal report.
Hudson Holdco's bid beat out Bloomfield, N.J.-based Community Healthcare Associate's bid by about $600,000, according to the report. CHA had planned to lease Christ Hospital to Jersey City (N.J.) Medical Center.
In December 2011, Hudson Holdco offered to purchase Christ Hospital for $91.6 million but Christ Hospital rejected the offer in order to continue a merger with California-based Prime Healthcare. However, Prime withdrew its bid for Christ in early February due to "political forces."
According to the report, Judge Stern claimed he was bound by precedent to defer to Christ Hospital board's endorsement of Hudson Holdco's bid. CHA Attorney Ken Rosen attempted to sway Mr. Stern's decision, claiming the bidding process had been "corrupted." With no proof, Mr. Stern dismissed the claims and selected Hudson Holdco.
Hudson Holdco plans to operate Christ Hospital as an acute-care facility for at least five years, and it pledges to hire back 100 percent of hospital union staff and 90 percent of non-union workers, according to the report.
"Political Forces" Caused Prime to Withdraw Bid for Christ Hospital in New Jersey
New Jersey County Board Vows to Keep Bankrupt Christ Hospital Open
Hudson Holdco's bid beat out Bloomfield, N.J.-based Community Healthcare Associate's bid by about $600,000, according to the report. CHA had planned to lease Christ Hospital to Jersey City (N.J.) Medical Center.
In December 2011, Hudson Holdco offered to purchase Christ Hospital for $91.6 million but Christ Hospital rejected the offer in order to continue a merger with California-based Prime Healthcare. However, Prime withdrew its bid for Christ in early February due to "political forces."
According to the report, Judge Stern claimed he was bound by precedent to defer to Christ Hospital board's endorsement of Hudson Holdco's bid. CHA Attorney Ken Rosen attempted to sway Mr. Stern's decision, claiming the bidding process had been "corrupted." With no proof, Mr. Stern dismissed the claims and selected Hudson Holdco.
Hudson Holdco plans to operate Christ Hospital as an acute-care facility for at least five years, and it pledges to hire back 100 percent of hospital union staff and 90 percent of non-union workers, according to the report.
More Articles on the Christ Hospital Purchase:
Christ Hospital Endorses Hudson Holdco Bid, U.S. Bankruptcy Judge to Make Final Decision"Political Forces" Caused Prime to Withdraw Bid for Christ Hospital in New Jersey
New Jersey County Board Vows to Keep Bankrupt Christ Hospital Open