Hudson Healthcare Inc. Files for Bankruptcy

Hudson Healthcare, Inc. the not-for-profit manager and operator of Hoboken University Medical Center filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on Monday, according to a press release from HHI.

“It is extremely important that the community, our patients and our employees

understand that this move by HHI does not mean the hospital is closing,” said CEO of HHI Vincent Riccitelli in the same press release. Ricitelli is also the acting CEO of the Hoboken University Medical Center.

The measure was taken to “ensure HUMC’s ability to continue operating until completion of the sale of the hospital to HUMC Holdco LLC,” according to the press release.

Hoboken Municipal Hospital Authority Chairwoman Toni Tomarazzo called the bankruptcy "an important step."

The sale is not yet completed, but is expected to happen in September. Before the sale can happen, the State Health Commissioner for New Jersey has to approve it. After the sale to HUMC Holdco, the management company will wind down.

“Assuming the transfer occurs as planned, it will benefit all stakeholders,” Ricitelli said. He added that it will be “business as usual” for staff and patients at the hospital.