The Hoboken City Council rejected a $5 million bond deal to appease creditors involved in bankruptcy negotiations with Hoboken (N.J.) University Medical Center, leading the city's mayor to believe the hospital will close soon, according to a Star-Ledger report.
The council voted 5-4 in favor of the deal, but the city requires six votes to approve bond ordinances, the report said. Clearing costs with creditors was needed before HUMC could be sold to the investor group that owns Bayonne (N.J.) Medical Center. Creditors are owed roughly $34 million from the hospital, but a settlement agreement with the $5 million bond and an additional $5 million from the city could have been attempted, the report said.
According to the report, Mayor Dawn Zimmer may consider asking the state for emergency relief to close the hospital immediately because the hospital is losing a stream of money.
Additionally, the Star-Ledger reported that New Jersey's U.S. attorney opposed the sale of HUMC unless the prospective owners also agreed to assume all of the hospital's outstanding Medicare liabilities.
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The council voted 5-4 in favor of the deal, but the city requires six votes to approve bond ordinances, the report said. Clearing costs with creditors was needed before HUMC could be sold to the investor group that owns Bayonne (N.J.) Medical Center. Creditors are owed roughly $34 million from the hospital, but a settlement agreement with the $5 million bond and an additional $5 million from the city could have been attempted, the report said.
According to the report, Mayor Dawn Zimmer may consider asking the state for emergency relief to close the hospital immediately because the hospital is losing a stream of money.
Additionally, the Star-Ledger reported that New Jersey's U.S. attorney opposed the sale of HUMC unless the prospective owners also agreed to assume all of the hospital's outstanding Medicare liabilities.
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