Hoboken Municipal Hospital Authority Statement on Bayonne Medical Center Transaction
 |
| HUMC Photo by the Hoboken Journal |
The Authority is aware of the recent transaction announced by Bayonne Medical Center (BMC). According to BMC’s announcement: “Bayonne Medical Center (BMC) has recently entered into a long-term real estate agreement with Medical Properties Trust (MPT), a major U.S. real estate investment trust headquartered in Birmingham, Alabama. Under the terms of the agreement, BMC refinanced its existing debt and in addition has access to a significant amount of capital for continued improvements in its infrastructure, and essential projects including a major remodeling of its Emergency Department. … MPT has now purchased the buildings and property in which Bayonne Medical Center is located for $58 million and the hospital has a minimum operating lease of 45 years.”
As the Authority announced previously, it has signed a Letter of Intent with HUMC Holdco LLC, an entity having common ownership with BMC, and is continuing negotiations in good faith to reach a final Asset Purchase Agreement. Despite the common ownership, the potential Hoboken transaction is entirely independent from the Bayonne transaction, and the Authority will only enter into a final agreement with HUMC Holdco that meets the Authority’s key goals of maintaining HUMC as a full-service, acute-care, community hospital; preserving relationships with our outstanding employees and medical staff; and relieving the City’s taxpayers of the bond guarantee obligations made to save the Hospital in 2007. ◦
