The HUMC (Hoboken University Medical Center) held their meeting last night at 7PM January 28, 2009. There were some routine resolutions passed regarding day in and day out operations of the hospital but the same focus of the meeting was to discuss and relay to the public the status of it's financial situation.Harvey Holzberg, acting CEO made general remarks about the Hospital and where it stands.
Key Points from Harvey:
- Hospitals such as the HUMC are not recession proof and the economic climate is the reason for the 3rd and 4th quarter operating losses.
- It is the goal of the HUMC to operate a Balanced Budget for 2009
- The Hospital has renegotiated with the unions and vendors for a projected savings of at least $3.2 million for 2009 and is looking to cut expenses elsewhere.
- They will institute a voluntary buyout package.
- Layoffs will be a last resort to get an additional savings of $1.5 million.
- Layoffs, if they occur will not include medical personnel such as nurses.
- Key initiatives like the emergency room, Obstetrics will go ahead.
- The emergency room is on schedule for the summer of 2009.
- The deficit last year was $4.3 million.
Another HUMC representative spoke of improving metrics of the Hospital in terms of Quality of Care. The Hospital had been low in certain key metrics in 2007 but has made improvements in such areas and cardiac care and pneumonia.
A few members of the Public were there such as Donna Antonucci and Councilwoman Beth Mason who asked questions about operations. More analysis to come after I have had time to review the financial statements.
Here is a letter from Harvey Holzberg on the financial status of the HUMC to George W. Crimmons Executive Director of the Hoboken Municipal Hospital Authority:
Here is the Financial Report that was handed out at the meeting:
My initial take: I think Harvey Holzberg is right, Hospitals are not recession proof. It is a good thing that they didn't try and open a plastic surgery unit because then the Hospital would really be in trouble when the yuppies decided to hold of on those face lifts and tummy tucks:). I thought the tone presented by the Hospital was much much more informative than had been in the Special Council meeting. My preliminary action is that the Hospital like many companies faces some tough economic challenges. I as a taxpayer and resident who may someday need their services hope that they do remain solvent. A scaling back of their plans however still remains a distinct possibility.
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