Hospital Board To Hire Special Legal Counsel

The Hoboken Municipal Hospital Authority approved a resolution to hire a special legal counsel, in a 5-4 vote, Wednesday night. 

The resolution authorizes a contract between the Hoboken University Medical Center and a professional corporation to provide professional services as Special Legal Counsel. 

It's not sure yet how much the special legal counsel will cost, but $150,000 has been budgeted for it in the 2010 budget. The 2010 budget was introduced by Hoboken University Medical Center CEO Spiros Hatiras during a previous meeting, but has not yet been approved by the Board. All numbers in the budget are still subject to change. 

The resolution was written by Toni Tomarazzo, the new Chairwoman of the Authority. "I'm concerned about the fiscal health of this institution," she said. 

Mayor Dawn Zimmer attended the meeting and publicly supported the resolution by delivering a prepared speech. 

"Unfortunately, the hospital is falling short of its own revenue projections contained in the proposed Fiscal 2010 budget," Zimmer said. "Based on current trends, it seems likely that the Hospital will not break-even in 2010 unless significant cuts in expenses are made immediately."

Hatiras begged to differ. 

"You're wrong, mayor," he said in response to her speech, "you're dead wrong." 

Hatiras argued that the 2010 budget will be "break-even, or better." The Hospital's fiscal year is the same as the calendar year. "I run a tight ship," Hatiras said.

Chairwoman of the Finance Commitee, Commissioner Tejal Desai said the budget is underfunded and argued that it's not sure yet that the budget will be break-even at the end of the year. Tomarazzo said the Hospital still has a large outstanding accounts payable bill, which she said was an "excessive amount."

The City of Hoboken is currently the guarantor for $52 million of hospital debt, Zimmer said. Zimmer said she would like to work toward privatizing the hospital, but said she didn't know yet when that would happen. 

"Public hospitals just don't work," Hatiras said. 

Since she's been in office, Zimmer said she appointed five commissioners to the Authority. "These new Board members have introduced proposals that have significantly expanded oversight and fiscal responsibility," Zimmer said. 

Again, Hatiras disagreed. 

"There's no credit I can give to your administration or your Board members," he said, adding that the credit should go to the hospital employees. All hospital employees took a 10 percent pay cut in order to save money.

Two audits are currently being done on the hospital: one of the Authority and the manager and one by the state, as part of a larger report on hospitals in Hudson County. The state requires Hoboken University Medical Center to participate in this (as well as Christ Hospital and Jersey City Medical Center), because of the $7 million stabilization grant it was awarded. The Authority is paying $200,000 for the state's report.

The state's report should be made public by June 1, Hatiras said. Because of the two audits, some Authority members argued that hiring a third consultant to look at the hospital's financial situation would be too much. 

Commissioner Kevin Kramer called it "overkill and premature."

George Doumar, the Hospital's Director of Engineering spoke up during the public portion of the meeting. He said the hospital should wait until after receiving the report from the state until spending any more money. Doumar mentioned that the employees' 1o percent pay cut saved the hospital $7 million. 

"I don't see a problem to wait 60 days," he said. Awarding a special counsel an 11 month contract, he said, "seems a little ludicrous."

Zimmer felt a stronger sense of hurry. "Time is of the essence," she said. "We have to act before our alternatives are narrowed further."