Prime drops offer; N.J. board OKs plans for bankruptcy filing
Trustees for Christ Hospital, a not-for-profit hospital in Jersey City, N.J., met on Wednesday and “unanimously approved authorizing the filing Chapter 11 reorganization—if necessary—in order to maintain financial stability and to preserve its commitment to its patients,” according to a statement. A spokesman said no information would be released beyond the statement.
Christ Hospital's losses accelerated in 2009 compared with the prior year, the most recent financial figures available from tax filings. The hospital reported a loss of $18.3 million on revenue of $144.1 million for the year that ended Dec. 31, 2009, compared with a loss of $4 million on revenue of $175.8 million the year before.
Prime Healthcare, for-profit health system based in Wildomar, Calif., said in a statement it rescinded its offer in response to “indications from respected local elected officials who wanted Christ Hospital to explore the option of keeping the hospital nonprofit and under local ownership.”
Prime, which last summer offered $35 million for the not-for-profit Christ Hospital, was outbid in recent months by another for-profit hospital operator.
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