Graphic added by the Hoboken Journal ZIMMER OUTLINES HER APPROACH TO HOSPITAL'S FISCAL PROBLEMS BLASTS CAMMARANO'S
"HEAD IN THE SAND” APPROACH
Dawn Zimmer today announced her plans to address the serious fiscal problems facing the City-owned Hoboken University Medical Center. Zimmer is committed to getting an accurate accounting of the hospital’s financial predicament, and working to convert the hospital back into a successful not-for-profit entity.
Councilwoman Zimmer said: "The hospital is important to the health of our residents and an integral and essential part of our community. But City Government should not be in the hospital business for the long-term. I will work carefully to convert the hospital into a not-for-profit entity closely affiliated with a strong regional partner. That's what is best for the hospital’s future and for Hoboken’s fiscal health.”
Councilwoman Zimmer criticized Councilman Cammarano's "head in the sand approach" to the Hospital. At last week's debate, Mr. Cammarano, an election and labor lawyer without a financial background, claimed to have done his own financial analysis of the hospital, His conclusion was, he said, that the hospital was financially sound, and that the city had minimal financial risk. Mr. Cammarano also claimed that most of the $52 million debt guaranteed by the City had not actually been borrowed, and that only a small amount of that debt had been used to finance operating expenses.
Rather than claiming to have performed her own financial analysis, Councilwoman Zimmer prefers to rely on the financial analysis done by actual financial analysts. The Moody's report evaluating the financial soundness of the hospital and its debt tells the real story, and makes clear that Mr. Cammarano's understanding of the hospital's financial position is simply incorrect. "Moody's believes while the city is not currently providing the hospital an operating subsidy, the hospital's poor operations and the city's debt guarantee, make the city vulnerable to such requests in the future." According to Moody's the hospital had barely 1 week's worth of available cash flow. In addition, according to Moody's and contrary to Mr. Cammarano's assertions, the full $52 million of city guaranteed bonds have already been issued to fund the hospital, and $9 million of that has been used to finance operating expenses.
The public has been given misleading information about the hospital's finances before. Zimmer pointed out that Council members were told that the hospital lost $4 million in ’08 only to later discover from the Audited Financial Statement that the actual loss was $11,000,000.
Zimmer said "Peter Cammarano's approach to the hospital problem is similar to his approach to the over-all Hoboken budget, where he still defends his votes for Mayor Roberts' reckless spending."
Zimmer said that if elected Mayor, she will meet immediately with the hospital’s medical staff leadership to develop a joint planning effort, based on accurate financial forecasts, to make sure Hoboken-ites continue to have access to appropriate hospital services for decades to come.
Councilwoman Zimmer believes solving the hospital problem is a high priority. With an estimated population of 45,000 located between the Holland and Lincoln Tunnels and right across from New York City, a major transportation hub through which thousands of commuters pass every day, a diverse population including many seniors, and continuing growth through residential and commercial development - Hoboken needs health care self-sufficiency.
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Councilwoman Zimmer criticized Councilman Cammarano's "head in the sand approach" to the Hospital. At last week's debate, Mr. Cammarano, an election and labor lawyer without a financial background, claimed to have done his own financial analysis of the hospital, His conclusion was, he said, that the hospital was financially sound, and that the city had minimal financial risk. Mr. Cammarano also claimed that most of the $52 million debt guaranteed by the City had not actually been borrowed, and that only a small amount of that debt had been used to finance operating expenses.
Rather than claiming to have performed her own financial analysis, Councilwoman Zimmer prefers to rely on the financial analysis done by actual financial analysts. The Moody's report evaluating the financial soundness of the hospital and its debt tells the real story, and makes clear that Mr. Cammarano's understanding of the hospital's financial position is simply incorrect. "Moody's believes while the city is not currently providing the hospital an operating subsidy, the hospital's poor operations and the city's debt guarantee, make the city vulnerable to such requests in the future." According to Moody's the hospital had barely 1 week's worth of available cash flow. In addition, according to Moody's and contrary to Mr. Cammarano's assertions, the full $52 million of city guaranteed bonds have already been issued to fund the hospital, and $9 million of that has been used to finance operating expenses.
The public has been given misleading information about the hospital's finances before. Zimmer pointed out that Council members were told that the hospital lost $4 million in ’08 only to later discover from the Audited Financial Statement that the actual loss was $11,000,000.
Zimmer said "Peter Cammarano's approach to the hospital problem is similar to his approach to the over-all Hoboken budget, where he still defends his votes for Mayor Roberts' reckless spending."
Zimmer said that if elected Mayor, she will meet immediately with the hospital’s medical staff leadership to develop a joint planning effort, based on accurate financial forecasts, to make sure Hoboken-ites continue to have access to appropriate hospital services for decades to come.
Councilwoman Zimmer believes solving the hospital problem is a high priority. With an estimated population of 45,000 located between the Holland and Lincoln Tunnels and right across from New York City, a major transportation hub through which thousands of commuters pass every day, a diverse population including many seniors, and continuing growth through residential and commercial development - Hoboken needs health care self-sufficiency.
