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Bergen’s request for new hospital manager draws unexpected coalition

Anjalee Khemlani//June 20, 2016//

Bergen’s request for new hospital manager draws unexpected coalition

Anjalee Khemlani//June 20, 2016//

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Bergen County is looking for a new manager for Bergen Regional Medical Center, and one possibility is a coalition of unexpected allies.

Frustrations over an opaque operating system and problems highlighted by The Record newspaper at the Paramus hospital over the past 19 years are spurring the county to test the market for new management options.

Of a dozen responses, one group of health care facilities in the area is of particular interest.

A coalition including Christian Health Care Center, Englewood Hospital and Medical Center, Hackensack University Medical Center, Holy Name Medical Center and Valley Health System, has submitted independent proposals to jointly oversee the medical center.

The overseeing agency, Bergen County Improvement Authority, asked for interested entities to submit by June 10. The county reported the 12 responses it received included the five from the coalition members.

Applicants interested in operating Bergen Regional Medical Center

  • Alvarez & Marsal Healthcare Industry Group, New York
  • Bergen Regional Medical Center, Paramus
  • Bergen Safety Net LLC, Fair Lawn
  • Care Plus NJ Inc., Paramus
  • Christian Health Care Center, Wyckoff
  • Eden Healthcare Service Group LLC, Paramus
  • Englewood Hospital & Medical Center, Englewood
  • Hackensack University Health Network, Hackensack
  • Holy Name Medical Center, Teaneck
  • Progressive Health Mgmt LLC, Denver
  • US Healthvest, New York
  • Valley Health System, Ridgewood

Source: Bergen County

This follows the comment County Executive Jim Tedesco previously made that a joint operating scheme would be permitted, not just a single organization.

Bergen Regional is county-owned — it is the fourth-largest publically owned hospital in the country — and a 1,000-bed health care facility that provides acute care, behavioral health, long-term care and other related services.

The current contract to operate the center on county-owned land expires March 15, 2017, according to county documents.

The proposal the coalition submitted to take over management is interesting since some of its members have recently been on opposite sides of an insurance debate.

The coalition cautioned it is still too early to answer questions about how its members would work together, but it did provide the following statement to NJBIZ:

“We are pleased to come together as a coalition of Bergen County health care providers to jointly submit our responses to the Bergen County Improvement Authority’s Request for Information as part of its exploration of options related to the future operation of Bergen Regional Medical Center. Our nonprofit organizations have long track records and established reputations for providing high-quality inpatient, outpatient, long-term and mental health care services to the residents of Bergen County.

“We believe that Bergen Regional Medical Center plays an essential role in the fabric of our community’s health care system, one that must be preserved and strengthened. As such, we look forward to moving  ahead with the due diligence process and collectively ensure that the vital role and important range of services provided at Bergen Regional continues and is enhanced to better serve the community.”

The county created an advisory committee last year to study the operation of the medical center, which resulted in a report in late April.

Some of the findings of the report:

  • The hospital receives significant financial subsidies, exceeding $79 million in 2014. Any future decrease in these funding sources poses a potential risk.
  • For 2014, BRMC is among the Top 10 recipients of funding for charity care in New Jersey, at $36 million.
  • BRMC’s campus is roughly 62.5 acres and offers ample space for redevelopment, the addition of new services or expansion of existing services.
  • The historic rate of capital investment in BRMC’s facilities averaged $2.71 per square foot per year, which is substantially below benchmarks of $5 to $7 per square foot per year seen at other not-for-profit hospital facilities.

A bill was also discussed at a recent Senate Health and Human Services committee hearing that would create an 11-member oversight committee to relieve the BCIA of its duty over the hospital.

Tedesco said the authority was needed elsewhere in the county, and this bill would help free up resources for it to do so.

Sen. Richard Codey (D-Livingston) noted during the Senate hearing that the medical center’s oversight is unique and taxing since it serves mental illness, addiction and long term care all under one roof in the North Jersey region.