Home>Articles>Judge rules Hudson Regional Hospital’s purchase of land under Bayonne Medical Center legal

The Bayonne Medical Center. (Photo: Courtesy of CarePoint Health)

Judge rules Hudson Regional Hospital’s purchase of land under Bayonne Medical Center legal

One count in BMC Hospital’s suit dismissed, with three others remaining until evidence can be presented

By Nikita Biryukov, September 18 2020 3:34 pm

A Hudson County Superior Court Judge dismissed one count of a suit brought by BMC Hospital LLC against Hudson Regional Hospital and denied the former group’s bid for a court order blocking HRH from bidding on the Bayonne Medical Center.

Judge Jeffrey Jablonski dismissed a count that alleged HRH had illegally purchased the property beneath the Bayonne Medical Center on grounds that the latter organization did not secure a certificate of need from the Department of Health.

CarePoint owner Avery Eisenreich and HRH reached an agreement for the firm to purchase of the land — CarePoint continues to operate the Bayonne Medical Center — in early August. Because CarePoint still manages hospital operations, HRH did not need a certificate of need to purchase the land

Carepoint continues to lease the land, now making its rent payments to HRH.

“We expected this decision and applaud the Judge for recognizing the absurdity of BMC’s applications,” HRH CEO Nizar Kifaieh said. “It is a great misfortune to Hudson County that any healthcare organization would attempt to use the courts to disrupt straightforward business dealings between private parties, but BMC Hospital LLC is shameless in their pursuit of public funding that will enrich its partners and drain resources out of the public health system and cost taxpayers tens of millions.”

The judge denied motions to dismiss three further counts brought by BMC that charge HRH purchased the land in a bid to open BMC up to tort claims, sought to illegally undermine BMC’s ongoing negotiations for purchase of the hospital and have engaged in unfair competition.

Those counts were not dismissed because they claim BMC has suffered damages and the judge needs to hear those evidence of said damages before he can decide whether to dismiss the counts.

Earlier Friday, BMC issued a press release claiming HRH had reneged claims of ownership on the land under the Bayonne Medical Center. The land belongs to 29 E 29 Sreet Holdings LLC, a holding company controlled by HRH’s owners. The holding company received a $9 million loan from HRH to purchase the property.

“To take us down this rabbit hole in a dirty style is extremely disgusting,” Kifaieh said. “We’re really disgusted by this whole situation, the constant lying, the constant misrepresentation of information.”

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