Heights University Hospital has received a temporary reprieve from closure after Hudson Regional Health (HRH) announced securing $2 million in partial funding from the State of New Jersey. The stopgap measure, announced by HRH President & CEO Dr. Nizar Kifaieh in collaboration with Hudson County and State officials, will fund critical services for approximately the next two weeks.
While the short-term funding is appreciated, HRH leadership emphasized that the amount is insufficient to resolve the hospital’s severe financial distress, which it largely inherited from previous operators. The hospital is currently losing over $1.5 million per week, a rate described as unsustainable.
“I offer my thanks to our state leaders, and in particular Governor Murphy, Senator Mukherji, and County Executive Guy, for this partial funding commitment from the Department of Health,” Kifaieh said. “Unfortunately, while this short-term, two-week stopgap funding is certainly appreciated, it will not meaningfully address the dire financial challenges facing the hospital.”
Over the next two weeks, HRH and elected officials will work to finalize two potential paths for the hospital’s future:
- Long-Term Stability: A plan combining State funding with other identified sources. This includes a crucial $25 million appropriation through the state legislative delegation, which is anticipated to be voted on during the lame-duck legislative session.
- Closure: Regrettably, the second path—in the absence of additional State funding—would lead to the suspension of services and, eventually, the complete closure of Heights University Hospital.
HRH assumed control of the former CarePoint hospitals in October 2024 and has since invested more than $300 million into the system. These investments were used to pay off inherited debts, reopen shuttered service lines, modernize facilities, and provide pay raises to unionized employees.
HRH Chairman of the Board, Yan Moshe, praised the hospital’s staff. “I’m extremely proud of our Heights employees for continuing to provide the highest quality care for our vulnerable communities, despite the circumstances… I am hopeful that our elected officials will help us forge a path forward to sustain the hospital’s long-term operations.”
The financial difficulties are compounded by the hospital’s patient demographics; 65% of Heights Hospital patients are uninsured, low-income, or otherwise vulnerable residents, leading to low reimbursement rates. This situation has been worsened by major cuts in Charity Care funding and Medicaid.
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