CarePoint Health has cleared the last step of its bankruptcy handover to Hudson Regional Hospital, signaling the official launch of a new four-hospital system, Hudson Regional Health, according to a release.
The transactions approved by a judge last month went into effect on May 22, putting to rest a tumultuous six-month bankruptcy for the New Jersey nonprofit (see that story below). Hudson and CarePoint had also floated a merger in early 2024 ahead of the Chapter 11 filing, though that plan and another involving Insight Health fell apart.
Hudson Regional Health is chaired by Yan Moshe, who had purchased a struggling Hudson Regional Hospital in 2017. Moshe, a real estate developer, has provided more than $120 million in funding to the CarePoint hospitals during the bankruptcy, according to the announcement, and is planning "a broad set of improvements and ... facility renovations and construction programs" for the hospitals.
The newly launched Hudson Regional Health is headquartered in Secaucus, New Jersey, and includes over 70 affiliated practice locations alongside the four hospitals: Hudson Regional Hospital, Christ Hospital, Hoboken University Medical Center and Bayonne Medical Center.
“Our innovations in Secaucus can now be scaled to provide even greater impact to the region,” Nizar Kifaieh, M.D., Hudson Regional Health's CEO. “Healthcare is a profound responsibility to the well-being of the community and we have embraced the opportunity to deliver an exceptional system with more than 1,500 doctors and 5,000 total staff delivering a broad range of services including the county’s only certified university-level medical education program.”
April 15
CarePoint Health exits bankruptcy, hands 3 hospitals over to Hudson Regional Hospital
CarePoint Health’s reorganization plan received the all-clear from a bankruptcy judge Friday, effectively transferring control of its three northern New Jersey hospitals to Hudson Regional Hospital.
Nonprofit CarePoint had filed for Chapter 11 in November, citing increased post-COVID operating costs, “persistent reimbursement challenges” and hundreds of millions in debt.
The system had been in dire financial straits for some time, according to state health officials, and earlier in 2024 had proposed a merger with Hudson Regional—though those plans fell apart, as did a potential rescue operation from Insight Health later that year that saw its CEO Jawad Shah briefly take the reins at CarePoint.
Both organizations were involved in CarePoint’s bankruptcy proceedings, court documents and reports show, though Hudson Regional agreed to, through an affiliate, provide at least $25 million of debtor-in-possession financing and managed the hospitals through the proceedings.
With the plan approved by U.S. bankruptcy Judge Kate Stickles, Hudson Regional operates and owns the real estate of Bayonne Medical Center—the latter of which it has held since 2020—and is operating Christ Hospital and Hoboken University Medical Center and their affiliated practices.
The arrangement creates a four-hospital system in New Jersey’s Hudson County and saves the county from losing half of its six hospitals.
“This is a threshold moment for Hudson County, as Hudson Regional Hospital can finally realize its vision of high-performing healthcare network with esteemed services and financial stability,” Yan Moshe, chairman of Hudson Regional Hospital, said in a press release.
Local officials for the cities in which the hospitals operated had rung warning bells about CarePoint’s flagging finances and stepped in to facilitate a potential deal back ahead of the bankruptcy. In new statements cited in local reports, they applauded the handoff and pointed to Moshe and his organization’s success in turning around Hudson Regional after purchasing it in 2017 (then as Meadowlands Hospital Medical Center).
Hudson Regional said it plans to update each of the new facilities, a process that’s already underway at Bayonne Medical Center.
“We fully recognize that services can, and must be improved at all three facilities,” Nizar Kifaieh, M.D., president and CEO of Hudson Regional, said. “Our goal is simple: we want residents of all three communities as well as the surrounding area to have confidence in their community hospital. We will be working diligently to restore the trust in the healthcare system, and bring reliable, quality healthcare to the people we serve.”
CarePoint was one of five bankruptcies filed within the hospital sector in 2024.