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Hackensack University Medical Center prevails
(by Maggie Fazeli Fard - March 06, 2008)
HUMC, Touro take Pascack Valley Hospital for $45 million
In the more than three months since Pascack Valley Hospital (PVH) closed its doors, local residents and officials alike have kept their fingers crossed that acute-care services, namely an emergency room, would return to Westwood. By mid-afternoon last Wednesday, it appeared that Pascack Valley’s wishes would be granted when a joint bid of $45 million by Hackensack University Medical Center (HUMC) and Touro University College of Medicine prevailed.
On Wednesday, Feb. 27, the twice-rescheduled bankruptcy hearing, at which the former PVH site would hit the auction block, was finally held. Proceedings, which were presided over by U.S. Bankruptcy Court Judge Rosemary Gambardella kicked off with the announcement that a total of six bids had been received but two, the Village Group and Paradigm Physician Partners (P3) had been disqualified.
Jack Zackin, PVH’s attorney, told the judge that both disqualified bidders had submitted their bids late, less than 24 hours before the hearing, and that neither had a deposit in place, one of the bid requirements.
“We believe they did not meet most of the criteria,” Zackin said.
The remaining four bidders included a group called “Prism” that did not participate in the hearing; “the Kim group,” a mother-son team that had partnered with Holy Name Hospital in Teaneck to explore the possibility of reopening an emergency room; “9 Knolls Lane,” a subsidiary of a New-York based development firm working with Englewood Hospital and Medical Center and The Valley Hospital in Ridgewood; and the joint bid by HUMC and Touro University College of Medicine.
Bidding began at $35 million and proceeded in $500,000 increments. The Kim group dropped out after one round, but the price continued to rise, settling at $45 million before 9 Knolls Lane, too, lost its footing four hours and more than 20 rounds of bidding later.
The sale still needs to be approved by the judge at a March 18 hearing; 9 Knolls Lane, which proposes to lease hospital beds to Englewood and Valley hospitals, was named as the backup bidder.
“We’re very excited,” said HUMC’s attorney, Patricia Celano, immediately following last Wednesday’s hearing.
Her sentiments were echoed by John P. Ferguson, HUMC’s president and chief executive officer, and Paul M. Wallach, the vice president and dean of Touro University College of Medicine, who, in a joint press release, expressed that they were pleased with the outcome of the auction.
“Naturally, everyone at Touro University College of Medicine is extremely pleased with the court’s decision,” Wallach stated in the press release. “We hope that the return of essential healthcare services, coupled with an academic environment of a medical school, will help Westwood remain one of the most desirable towns in New Jersey to live and work.”
What they’ll do
Richard A. Braunstein, who has served as assistant general counsel of Touro College and its affiliates since 1987, was unequivocal in characterizing the prevailing partnership: “This truly is a match made in heaven,” he said Tuesday.
“Imagine: a new medical school joining forces with one of the nation’s leading hospitals to provide education and healthcare to the residents of northern New Jersey. Lives will be saved. Communities will flourish. Everyone wins.”
The winning bid proposes to reopen an emergency room as soon as accreditation is received, followed by the restoration of a community hospital. HUMC, which has operated PVH’s mobile intensive care unit (MICU) since winning the license in an auction last fall, submitted an application to the state to reopen the emergency room several months ago, said River Vale Attorney Holly Schepisi, who has attended PVH-related hearings since last fall.
“I think they have every intention of opening up the ER and phasing in [services] to make it a full-service hospital,” Schepisi said in a phone interview Monday, noting that it is unknown exactly when services will be restored.
Westwood Mayor John Birkner said Monday that he doesn’t expect that an emergency room will be up and running before September or October with support services coming in later. People assume that with the auction over, the hospital would reopen in a matter of days, Birkner said. “It’s not quite that simple. They have a lot of work ahead of them. There’s a lot to do.”
A more definitive timeline has been established for the opening of Touro University College of Medicine, which is preparing to welcome its first class in September 2009.
“We need to open in 2009,” explained Braunstein. “Touro College would incur substantial cost with no guarantee that the physicians who accepted faculty appointments would wait until September 2010 to start.”
Touro University College of Medicine would employ 30 faculty members for its first class of 40 students in 2009. There are no plans to supply student housing or to build dormitories on the site.
Birkner said that Westwood plans to continue to do its part to facilitate the process.
On Feb. 19, a week before the auction, the borough introduced an ordinance to amend the zoning regulations in the “H” zone (hospital zone) to allow a medical school to operate in conjunction with a hospital. The ordinance would also allow for multi-level parking garages, a pharmacy, and a childcare center on site. The ordinance will be up for public hearing and adoption on April 22.
“We’re really looking forward to having medical students come in, eating in our restaurants, shopping in our stores,” said Birkner. “This is important for our economy, not only for our businesses but for our residents,” he said of the hospital, which was Westwood’s largest employer before it closed.
Additionally, Birkner said that he has invited the winning bidder to make a public presentation at a future meeting in order to break down the plans for residents.
“I’m delighted,” Birkner said. “It’s fantastic that they are coming in. We think it’s a fantastic fit.”
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