Editor’s note: This article was updated to include information about Insight’s management agreement with CarePoint Health and correct the headline. Lea este artículo en español aquí.
Insight Health, the company looking to take over Hazel Hawkins Memorial Hospital, terminated an agreement with CarePoint Health, which operates a hospital group in Hudson County, New Jersey. Insight’s CEO, Dr. Jawad Shah stepped down as CarePoint Health’s president and CEO on Oct. 27, after about three weeks of serving in that role, as reported by John Heinis for Hudson County View.
While CarePoint Health did not announce Shah’s departure, the news broke after Hudson Regional Hospital sent a letter to its board of directors proposing an acquisition for its three facilities—Bayonne Medical Center, Christ Hospital and Hoboken University Medical Center.
In that letter, attorney Thomas Abatte wrote that Insight’s management agreement was also terminated.
BenitoLink reached out to CarePoint Health and a spokesperson said they could not provide a comment at this point.
Dayne Walling, Insight’s director of public policy and government relations, told BenitoLink that CarePoint Health’s system is a “fluid situation,” and said Insight was refocusing on other facilities that are more core to their network.
“Specifically,” Walling said, “Insight stepped in to save two hospitals in Ohio, Trumbull Regional Medical Center and Hillside Rehabilitation Hospital. Both are moving forward with Insight.”
Asked how this decision reflects on the proposed deal with the San Benito Health Care District, he said the services it planned to provide to CarePoint Health differ from those it is proposing in San Benito County.
“Insight is looking to make a long-term, permanent investment in the San Benito County Community,” he said, “which is why we proposed, with the health care district’s support, the conversion of the hospital into a nonprofit so it can always be there for the community.”
He said Michigan-based Insight involvement with CarePoint Health began in March. He clarified while Shah stepped down as CarePoint’s CEO, the organization was still providing services “especially around financial management.”
Marcus Young, a consultant to San Benito Health Care District, said the district does not comment on Insight’s other deals.
Hollister resident Robert Benorsky, who has a been vocal about his opposition to selling the hospital, said this was further evidence Insight doesn’t know what is doing.
“They are crisscrossing the country looking for marginal performing hospitals that are real estate rich,” he said.
He added he feels he is working with a group of residents to protect the hospital from “damage.”
San Benito Health Care District, which governs Hazel Hawkins Memorial Hospital, is pursuing bankruptcy. Its filing is being reviewed by the appellate court after bankruptcy Judge Stephen L. Johnson dismissed the case stating the district did not prove it was insolvent and unable to pay its debts.
Insight is pursuing a lease-option to purchase agreement for the district’s Hazel Hawkins Memorial Hospital. For that potential transaction to move forward, a majority of voters need to approve it through Measure X on the Nov. 5 ballot. If voters support the district to pursue the deal, the district can still back out if they don’t agree to the definitive terms.
The principal terms can be found below.
BenitoLink coverage of Hazel Hawkins Memorial Hospital:
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