CarePoint Health Systems, Inc., a non-profit organization operating three hospitals in Hudson County, New Jersey, has filed for voluntary relief under Chapter 11 of the U.S. Bankruptcy Code.
The decision to file for bankruptcy comes as the healthcare sector grapples with rising operational costs, insufficient state funding, and persistent reimbursement issues exacerbated by the COVID-19 pandemic.
To support this restructuring process, CarePoint has secured $67 million in new financing.
The hospitals under CarePoint's management collectively serve over 60% of Hudson County's population, with a significant portion of their patients being uninsured or underinsured.
Dr. Achintya Moulick will continue to lead the organization as Chairman and CEO. Salaries and benefits for CarePoint's staff will continue, and the organization remains committed to delivering high-quality healthcare services to the communities it serves.
The restructuring has garnered support from local leaders, who recognize the critical role these hospitals play in the community.
The collaboration with Hudson Health Systems is expected to enhance operational integration and sustainability.
CarePoint's proactive approach reflects a broader trend within the industry, where healthcare providers are seeking innovative solutions to sustain operations in an increasingly difficult environment.