1. Access to high quality hospital care is essential either from an independent, financially sound, not-for-profit hospital (with no city government ownership or financial guarantees) in Hoboken, or through contractual, service and/or transfer agreements with another area hospital (with no financial subsidies from the City).
2. If the Hospital is financially sound as it has reported to City Hall, then it no longer should be City-owned, but revert to being a 401C3 not-for-profit entity. And the City should be relieved from “guaranteeing” the hospital’s bonds ($52 million).
3. Otherwise, the Hospital should make an immediate public presentation on its financial condition, addressing as well the following issues and questions.
4. If the hospital is NOT financially stable and self-sufficient the New Jersey Commissioner of Health should appoint an arms-length Blue Ribbon Oversight Committee to evaluate the situation and make mandatory recommendations in thirty days. The Report of the Committee should be posted on the web.
5 If the hospital cannot meet its bond payments, what is the impact on the City's finances and property taxes?
6. The first step should be to review the most recent financial report for the period ending December 31, 2008. In the last quarter: Did Accounts Payable increase? Were Accounts Receivable from Medicare and Medicaid accurate or over-stated? Were reserves taken in as revenue appropriate or excessive? Was the “provision for doubtful accounts” accurate or understated?
7. The following advisors should be selected by the Board in a public process: external auditor, executive compensation, corporate compliance. Those selected should have no prior professional relationship with the hospital’s senior management,
8. The CEO’s total compensation should be “at market” and publicly disclosed, with confirmation of appropriateness by a “Reasonableness Letter” from the Executive Compensation consultant.
9. The Search Process for a new CEO, apparently currently underway, should be transparent and allow sufficient time for public review and comment. The City Council should approve the next CEO upon recommendation of the Mayor.
10. The State recently awarded six safety-net hospitals $44 million in Stabilization Fund Grants. How much did the Hospital apply for from the fund and what are the consequences of receiving no award?
11. The Hospital’s Conflict of Interest Policy and Corporate Compliance Plan should be posted on its web site.
12. Payments to physicians and their job descriptions should be posted on the Hospital web site.
13. The Hospital has the longest Medicare length of stay in the State and performed poorly on recently published quality measures. The Hospital’s Corrective Action Plan should be posted on its web site as should quarterly progress reports.
14. Is discussion underway with Hudson County’s other struggling hospitals to regionalize services? Is there a contingency plan in place if the hospital closes?
HOBOKEN TAX REFORM COALITION MISSION AND OBJECTIVES
Mission
The mission of HOBOKEN TAX REFORM COALITION, a community-based organization, is:
- to ensure fiscal responsibility and accountability in Hoboken government;
- to reduce waste and eliminate mismanagement in government
- to encourage broad and open policy discussion between citizens and elected officials
- to establish a fair allocation of property taxes among all Hoboken property owners
Objectives
1) Drive a significant reduction in property taxes without compromising the safety and soundness of Hoboken.
2) Set standards for smart PILOTs that improve the fiscal condition of the City.
3) Remove the taxpayer guarantee to the Hoboken University Medical Center.
4) Force the initiation of a property revaluation as per current law.
5) Act as a fiscal watchdog / public advocate for the taxpayers of Hoboken.
