Surgery center owner receives approval to purchase New Jersey hospital — 6 insights

The New Jersey Health Planning Board unanimously agreed to sell Secaucus, N.J.-based Meadowlands Hospital Medical Center to surgery center developer Yan Moshe, The Jersey Journal reports.

Here's what you should know:

1. The board approved the sale to Mr. Moshe for $12.2 million. Mr. Moshe owns two surgery centers in Bergen County, N.J.

2. The sale approval advances to Acting New Jersey Department of Health and Human Services Commissioner Christopher Rinn. Mr. Rinn has up to 120 days to make a final decision on the sale.

3. Mr. Moshe committed to spending an additional $26 million to purchase the land the hospital is on. He has no experience running a hospital. If approved, the new hospital would operate under the name NJMHMC.

4. The board was deadlocked on the approval process three weeks prior, but the board wrote in its decision that, "this transfer of ownership of MHMC to NJMHMC will not result in any negative impact on the community or patients that the hospital has historically served, or on other area hospitals. This transfer, the only option presented to the department, would be the least disruptive to the area's health care delivery system at this time."

5. As part of his application, Mr. Moshe committed to maintaining the hospital's bed capacity, services, employees and contract agreements. He also committed to investing $3 million in new equipment.

6. Meadowlands Hospital Medical Center has struggled over recent years, both financially and with patient capacity. In 2016, the hospital's average number of daily patients was 26. The hospital is licensed for 200 beds.

More articles on transactions/valuations:
ValuEngine reduces Surgery Partners to 'sell' — 3 quick notes
Illinois hospital completes $9.4M outpatient surgery center expansion — 3 insights
Doheny Eye Institute purchases new $50M facility — 5 key notes

© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months