CarePoint Health files for bankruptcy

CarePoint Health, a long-troubled New Jersey hospital chain, filed for bankruptcy on Sunday.

CarePoint listed assets of $500,001 to $1 million and liabilities of up to $50,000 in a Chapter 11 petition filed in the Delaware court.

The company said in a statement that it filed the voluntary petition to facilitate a financial restructuring designed to improve its capital structure. It cited “increase in direct costs of operating the Hospitals after Covid, insufficient state funding, and persistent reimbursement challenges” as a reason for its restructuring. The company added that it has obtained $67 million in new financing to ensure that its hospitals remain open.

CarePoint also said Achintya Moulick will serve as its chairman and chief executive officer.

Hospitals are struggling to deal with higher costs for staff and supplies, a particular challenge for systems like CarePoint that treat poorer patients with lower-paying government health coverage.

The New Jersey system’s finances alarmed the state enough that it appointed a monitor in January and sent letters to CarePoint’s hospitals ordering them to prepare a disaster plan in the event that they suddenly need to close facilities or stop services.

CarePoint signed a letter of intent in January to form a four-hospital system with Hudson Regional Hospital in Secaucus. CarePoint operates the 261-bed Bayonne Medical Center along with Hoboken University Medical Center and Christ Hospital in Jersey City, each with about 350 beds.

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