Mayor Zimmer Announces Trenton’s Emergency Funding for Hoboken University Medical Center

Mayor Dawn Zimmer announced today that the City was informed by the New Jersey Department of Health and Human Services of an allocation of $7 million for the Hoboken University Medical Center from the State’s Health Care Stabilization Fund.

“This funding is very welcome news since it recognizes Hoboken UMC as an essential safety-net hospital and will allow much needed additional time to improve the hospital’s financial performance and pursue its recovery plan,” Mayor Zimmer commented.  The Mayor added that more work needs to be done to ensure that the hospital will be financially self sufficient and she is confident the new CEO and his management team are taking all necessary steps to improve revenues and lower costs.

Mayor Zimmer and the hospital’s CEO, Spiros Hatiras, together thanked Governor Jon Corzine and Health Commissioner Heather Howard, as well as members of the Governor-elect Chris Christie Transition Team which supported the awards.  She also expressed gratitude to Senator Robert Menendez, State Senator Brian Stack, Assemblyman Ruben Ramos, former State Senator Bernard Kenny and members of the Hoboken City Council for their advocacy and support of the hospital.

Mr. Hatiras previously announced a budget reduction plan with a goal of reaching a break-even financial result for 2010.  The Stabilization Grant funding is a part of the recovery plan and does not lessen the need for the hospital to reduce its operating expenses.

He explained, “success of the plan will require shared sacrifice by everyone at the hospital; the senior management team has set an example and already taken a 10% salary decrease.” Mayor Zimmer noted that Mr. Hatiras voluntarily led by taking a 15% reduction.

The financially struggling St. Mary Hospital was made a City entity in 2006. The City guaranteed $52,000,000 in bonds for capital projects starting with the new Emergency Room. Approximately $9 million has been used to fund operating expenses.  The hospital lost $22.8 million in 2008 on a budget of $136,000,000.

Hoboken Municipal Hospital Authority Chairman Kevin Kramer expressed appreciation for Mayor Zimmer’s advocacy on behalf of the hospital: “The Mayor’s persistent hands-on lobbying  for support was instrumental in getting this funding across the finish line.”

You can view the press release from the Department of Health and Senior Services announcing the distribution of the health care stabilization fund grants here or the link here.

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