1 NEW JERSEY STATE HEALTH PLANNING BOARD 2 PUBLIC HEARING x 5 IN RE: : 6 CERTIFICATE OF NEED

Transcription

1 1 NEW JERSEY STATE HEALTH PLANNING BOARD 2 PUBLIC HEARING x 5 IN RE: : 6 CERTIFICATE OF NEED APPLICATION FOR : 7 PARTIAL TRANSFER OF OWNERSHIP OF : 8 HOBOKEN UNIVERSITY MEDICAL CENTER : x LOCATION: A.J. Demarest Public School th Street, Auditorium 14 Hoboken, New Jersey DATE: Wednesday, April 6, TIME: 6:00 p.m. to 8:00 p.m GUY J. RENZI & ASSOCIATES, INC. 20 CERTIFIED COURT REPORTERS & VIDEOGRAPHERS 21 GOLDEN CREST CORPORATE CENTER STATE HIGHWAY #33, SUITE TRENTON, NEW JERSEY TEL: (609) TOLL FREE: (800)

2 2 1 B E F O R E: 2 HENRY S. KANE 3 JOHN CALABRIA

3 3 1 I N D E X 2 SPEAKERS PAGE 3 4 CHERYL FALLICK 6 5 STEVEN RODAS 10 6 TOM KOLB

4 4 1 MR. KANE: Good evening. My name is 2 Henry Kane. I'm a member of the State Health 3 Planning Board. Joining me tonight is John 4 Calabria, who is the Director for the Department of 5 Health. We expect there may be other members in 6 attendance coming in shortly who may be caught in 7 traffic. 8 This is a public hearing of the State 9 Health Planning Board in relation to the partial 10 transfer of ownership of Hoboken University Medical 11 Center. The Department has deemed the application 12 complete. And in accordance with the requirements 13 of law, the State Health Planning Board is required 14 to hold a public hearing on this application within days of this action. Adequate notice of this 16 notice has been published in accordance with 17 provisions of N.J.S.A. 26:2H Notice was sent 18 to the Secretary of State who posted the notice in a 19 public place. 20 In the interest of making efficient 21 use of the time for tonight's hearing, each speaker 22 will be limited to three minutes. If you have 23 longer written comments with you, please provide a 24 copy to the Board, and they will be taken into the 25 record.

5 5 1 Anyone interested in speaking tonight 2 should sign in on the speaker sheet at the entrance 3 to the auditorium, which is in the rear. Anyone who 4 wants to submit written comments after tonight's 5 hearing and before the Board meeting is urged to do 6 so. Such comments must be submitted no later than 7 Wednesday, April 20th, and should be addressed to 8 the State Health Planning Board in care of the 9 Department of Health. 10 For those of you unfamiliar with the 11 Certificate of Need process, the State Health 12 Planning Board will vote on a recommendation as to 13 the decision on this application which will be 14 submitted to the Commissioner of Health. The State 15 Planning Board's hearing is part of the Certificate 16 of Need process, and your comments will be 17 considered as purview the issues related to health, 18 planning, hospital, and access to health care 19 services. 20 Your comments are an important part of 21 this process and will be considered, along with the 22 materials submitted by the applicant. The Board can 23 recommend approval of the application, approval with 24 conditions, or denial of the application before it. 25 The Commissioner will make final decision on the

6 6 1 application after the Board makes its 2 recommendation. Thank you. 3 Is there anyone in the audience who 4 would like to speak at this time? 5 No? Okay. 6 We'll go on adjournment until such 7 speaker presents themselves, and then we'll 8 reconvene at that time. Thank you. 9 (Recess.) 10 MR. KANE: Please, if you'd like to 11 speak, absolutely. The floor is yours. Speaking 12 time is three minutes, and we will liberal with 13 that. If you could state your name and spell it for 14 the record, if you would please. 15 MS. FALLICK: Cheryl Fallick. Cheryl 16 with a C-H-E-R-Y-L. Last name is F-A-L-L-I-C-K. 17 Can I ask who I'm speaking with? 18 MR. KANE: Sure. You didn't come in 19 the beginning of meeting. I'm a member of the State 20 Health Planning Board. I'm here listening, and the 21 record will accompany the actual application to the 22 State Health Planning Board meeting. Our 23 recommendations then go to the State, to the 24 Commissioner. 25 MS. FALLICK: Okay. I have questions,

7 7 1 which I guess you're probably not going to answer, 2 but maybe as the meeting progresses it can be in the 3 record somewhere and I could identify it later. 4 MR. KANE: I can't answer any 5 questions. 6 MS. FALLICK: Well, then I'll present 7 it as a certain. Obviously, I don't know -- not 8 obviously. It's not obvious to you. I don't know 9 the ins and outs. I am a Hoboken resident, so I was 10 aware of the whole hospital thing and all the 11 politics that were surrounding it at the time of the 12 sale without really having a position or 13 understanding enough. 14 The things that I'm concerned about 15 right now -- and I don't now it impacts what's going 16 on. I did some online reading. Apparently, there's 17 been some legal litigation, et cetera. When the 18 citizens of Hoboken were told to embrace this sale, 19 they were also told that CarePoint would be 20 continuing to take Horizon insurance. And I don't 21 know, nor do any of us know, if there was a finite 22 time for that. But apparently, the CarePoint 23 Hospital will be no longer taking any insurance. So 24 it is a concern. And it was done because of the 25 police, fire, and municipal workers. I am none of

8 8 1 those, but I am an ObamaCare person who selected 2 Horizon for the same reason. 3 The second thing that is confusing to 4 me as a resident, from what I could tell -- and I 5 don't have all the details -- is that it seems that 6 part of the sale involved this real estate 7 investment trust owning the land and taking on 8 25 percent of the ownership of the hospital, but 9 somehow or other only 9.9 percent of the hospital 10 was turned over or awarded or whatever. And I think 11 that this hearing is for the rest of that. And the percent was apparently just under an amount that 13 would allow for additional scrutiny. So I'm 14 concerned that the citizens -- if that be the case, 15 I'm concerned that the citizens of Hoboken didn't 16 have that opportunity whether they wanted to take it 17 or not. It was a very political thing here, so I'm 18 not sure if anybody had the stomach for it. 19 I'm concerned that because there's 20 apparently or maybe some delinquency that the real 21 estate investment trust that actually owns the land 22 is going to evict the hospital and what that would 23 mean. Would that mean that they're going to bring 24 in another profit oriented health care facility or 25 are we now looking at what we all expected at some

9 9 1 point in time to happen, a very large development? 2 I know you can't answer it, but I did 3 want those questions on the record. 4 And are you guys going to be doing any 5 presenting on anything later? Not answering not 6 specifically. 7 MR. CALABRIA: We expect some folks 8 from both the hospital and the applicant to come and 9 speak a little bit later. Maybe in they're comments 10 they may or may not address it. The full State 11 Health Planning Board will meet on May 5th in 12 Trenton. 13 MS. FALLICK: May 5th. And that's 14 where you'll make the determination? 15 MR. CALABRIA: That's when the Board 16 will make a determination. 17 MS. FALLICK: Okay. So eventually 18 we'll know what happen somehow if we look for it. 19 MR. KANE: It's an open meeting at 20 9:30 in the morning. 21 MS. FALLICK: In Trenton. 22 That's not as easy as a block from my 23 house. Okay. Thank you very much. 24 MR. KANE: Is there anyone else who 25 would like to speak at this time?

10 10 1 State your name for the record and 2 spell your name, as well, for the record. 3 MR. RODAS: Good evening. My name is 4 Steven Rodas, R-O-D-A-S. And I'd just like to state 5 that I live in a town in Hudson County for a pretty 6 long time now, and I've only seen -- I've witnessed 7 myself the positive impact that CarePoint has had 8 throughout all of Hudson County, not just Jersey 9 City, Hoboken, and Kearny. I'm also a financial 10 advisor. I've been in the financial services 11 industry for over 12 years now. And whenever at 12 least I've experienced a REIT buying into another 13 company, it's usually for positive reasons. It 14 usually means they believe in the company or the 15 company is cash flow positive. So I can appreciate 16 the community member's concerns about the company 17 potentially buying ownership and what the negatives 18 are, but you also have to look at the positives. 19 The positive is that the company is cash flow 20 positive and it's doing good things around the 21 community and all of Hudson County. 22 Thank you. 23 MR. KANE: Thank you. 24 If you can just state your name and 25 spell your name for the record.

11 11 1 MR. KOLB: Sure. My name is Tom Kolb, 2 K-O-L-B, and I'm an attorney at Baker Donelson in 3 Birmingham, Alabama. And I'm here on behalf of MPT 4 of Hoboken TRS, LLC, or as I'll sometimes refer to 5 it as MPT, which is an affiliate of Medical 6 Properties Trust, Inc. Also with me is Steve 7 Hamner, the Chief Financial Officer of Medical 8 Properties Trust. 9 Medical Properties Trust is a publicly 10 traded from the New York Stock Exchange Real Estate 11 Investment Trust, or REIT. It's headquartered in 12 Birmingham, Alabama. Its business is focused on the 13 acquisition of real estate, hospital real estate, 14 and leasing that to general acute care and specialty 15 hospital providers throughout the United States, in 16 England, and in Western Europe. Although with the 17 REIT, ownership and leasing of real estate is its 18 primary focus, MPT may also, with the interest in 19 the operations of the hospital tenants such as 20 Hoboken university center. It must do so, however, 21 under strict rules which prohibit it from taking any 22 active role in the day-to-day management or 23 operation of the facility. 24 The Certificate of Need application 25 before the Board requests approval for MPT to

12 12 1 increase its ownership interests in the operations 2 from it's current 9.9 percent to 25 percent. As 3 described in the application, MPT will take no role 4 in the management or operation of the facility. 5 That will continue to be done by our CarePoint 6 partners, HUMC, LLC. And furthermore, MPT 7 understands that if there's ever a change in the 8 governance or operation of the facility that they'll 9 have to an approval obtained from the Board in 10 accordance with New Jersey's rules and regulation. 11 As I noted, MPT is focused on 12 providing capital to hospital systems through the 13 sale leaseback of hospital real estate. It is not 14 interested in redeveloping real estate outside of 15 the medical field and doesn't intend to do and want 16 to make sure that any suggestion that that's our 17 plan is unfounded. 18 MPT has demonstrated a recognized 19 history of providing essential capital to health 20 systems, such as CarePoint, and it looks forward to 21 the hospital continuing to provide medical care in 22 the Hoboken community for many years to come. 23 Thank you very much. 24 MR. KANE: Thank you. 25 Anyone else would like to make a

13 13 1 statement for the record? 2 We'll be in recess until someone else 3 presents themselves. We'll be here 8:00 p.m. Feel 4 free to stick around. 5 (Recess taken.) 6 MR. KANE: It is now 8 o'clock. We 7 formally close this hearing. 8 (Hearing concluded at 8:00 p.m.)

14 14 1 C E R T I F I C A T E 2 3 I, Lisa C. Bradley, a Certified Court 4 Reporter and Notary Public of the State of New 5 Jersey, do hereby certify that the foregoing is a 6 true and accurate transcript of the testimony as 7 taken stenographically by and before me at the time, 8 place and on the date hereinbefore set forth, to the 9 best of my ability LISA C. BRADLEY, CCR 15 CCR NO. 30XI Date: April 29, 2016

15 Page 15 A A.J 1:12 ability 14:9 absolutely 6:11 access 5:18 accompany 6:21 accurate 14:6 acquisition 11:13 action 4:15 active 11:22 actual 6:21 acute 11:14 additional 8:13 address 9:10 addressed 5:7 Adequate 4:15 adjournment 6:6 advisor 10:10 affiliate 11:5 Alabama 11:3 11:12 allow 8:13 amount 8:12 answer 7:1,4 9:2 answering 9:5 anybody 8:18 apparently 7:16,22 8:12 8:20 applicant 5:22 9:8 application 1:6 4:11,14 5:13,23,24 6:1,21 11:24 12:3 appreciate 10:15 approval 5:23 5:23 11:25 12:9 April 1:15 5:7 14:25 ASSOCIATES 1:19 attendance 4:6 attorney 11:2 audience 6:3 auditorium 1:13 5:3 awarded 8:10 aware 7:10 B B 2:1 Baker 11:2 beginning 6:19 behalf 11:3 believe 10:14 best 14:9 Birmingham 11:3,12 bit 9:9 block 9:22 Board 1:1 4:3 4:9,13,24 5:5,8,12,22 6:1,20,22 9:11,15 11:25 12:9 Board's 5:15 Bradley 14:3 14:14 bring 8:23 business 11:12 buying 10:12 10:17 C C 14:1,1,3,14 C-H-E-R-Y-L 6:16 Calabria 2:3 4:4 9:7,15 capital 12:12 12:19 care 5:8,18 8:24 11:14 12:21 CarePoint 7:19 7:22 10:7 12:5,20 case 8:14 cash 10:15,19 caught 4:6 CCR 14:14,15 center 1:8,21 4:11 11:20 certain 7:7 Certificate 1:6 5:11,15 11:24 Certified 1:20 14:3 certify 14:5 cetera 7:17 change 12:7 Cheryl 3:4 6:15,15 Chief 11:7 citizens 7:18 8:14,15 City 10:9 close 13:7 come 6:18 9:8 12:22 coming 4:6 comments 4:23 5:4,6,16,20 9:9 Commissioner 5:14,25 6:24 community 10:16,21 12:22 company 10:13 10:14,15,16 10:19 complete 4:12 concern 7:24 concerned 7:14 8:14,15,19 concerns 10:16 concluded 13:8 conditions 5:24 confusing 8:3 considered 5:17,21 continue 12:5 continuing 7:20 12:21 copy 4:24 CORPORATE 1:21 County 10:5,8 10:21 Court 1:20 14:3 CREST 1:21 current 12:2 D D 3:1 date 1:15 14:8 14:25 day-to-day 11:22 days 4:15 decision 5:13 5:25 deemed 4:11 delinquency 8:20 Demarest 1:12 demonstrated 12:18 denial 5:24 Department 4:4 4:11 5:9 described 12:3 details 8:5 determination 9:14,16 development 9:1 Director 4:4 doing 9:4 10:20 Donelson 11:2

16 Page 16 E E 2:1,1 3:1 14:1,1 easy 9:22 efficient 4:20 embrace 7:18 England 11:16 entrance 5:2 essential 12:19 estate 8:6,21 11:10,13,13 11:17 12:13 12:14 et 7:17 Europe 11:16 evening 4:1 10:3 eventually 9:17 evict 8:22 Exchange 11:10 expect 4:5 9:7 expected 8:25 experienced 10:12 F F 2:1 14:1 F-A-L-L-I-C-K 6:16 facility 8:24 11:23 12:4,8 Fallick 3:4 6:15,15,25 7:6 9:13,17 9:21 Feel 13:3 field 12:15 final 5:25 financial 10:9 10:10 11:7 finite 7:21 fire 7:25 floor 6:11 flow 10:15,19 focus 11:18 focused 11:12 12:11 folks 9:7 foregoing 14:5 formally 13:7 forth 14:8 forward 12:20 free 1:24 13:4 full 9:10 furthermore 12:6 G general 11:14 go 6:6,23 going 7:1,15 8:22,23 9:4 GOLDEN 1:21 good 4:1 10:3 10:20 governance 12:8 guess 7:1 GUY 1:19 guys 9:4 H Hamner 11:7 happen 9:1,18 headquartered 11:11 health 1:1 4:2 4:5,9,13 5:8 5:9,11,14,17 5:18 6:20,22 8:24 9:11 12:19 hearing 1:2 4:8,14,21 5:5,15 8:11 13:7,8 Henry 2:2 4:2 hereinbefore 14:8 HIGHWAY 1:22 history 12:19 Hoboken 1:8,14 4:10 7:9,18 8:15 10:9 11:4,20 12:22 hold 4:14 Horizon 7:20 8:2 hospital 5:18 7:10,23 8:8 8:9,22 9:8 11:13,15,19 12:12,13,21 house 9:23 Hudson 10:5,8 10:21 HUMC 12:6 I identify 7:3 impact 10:7 impacts 7:15 important 5:20 increase 12:1 industry 10:11 ins 7:9 insurance 7:20 7:23 intend 12:15 interest 4:20 11:18 interested 5:1 12:14 interests 12:1 investment 8:7 8:21 11:11 involved 8:6 issues 5:17 J J 1:19 Jersey 1:1,14 1:23 10:8 14:5 Jersey's 12:10 John 2:3 4:3 Joining 4:3 K K-O-L-B 11:2 Kane 2:2 4:1,2 6:10,18 7:4 9:19,24 10:23 12:24 13:6 Kearny 10:9 know 7:7,8,21 7:21 9:2,18 Kolb 3:6 11:1 11:1 L land 8:7,21 large 9:1 law 4:13 leaseback 12:13 leasing 11:14 11:17 legal 7:17 liberal 6:12 limited 4:22 Lisa 14:3,14 listening 6:20 litigation 7:17 little 9:9 live 10:5 LLC 11:4 12:6 LOCATION 1:12 long 10:6 longer 4:23 7:23 look 9:18 10:18 looking 8:25 looks 12:20 M making 4:20 management

17 Page 17 11:22 12:4 materials 5:22 mean 8:23,23 means 10:14 medical 1:8 4:10 11:5,7 11:9 12:15 12:21 meet 9:11 meeting 5:5 6:19,22 7:2 9:19 member 4:2 6:19 member's 10:16 members 4:5 minutes 4:22 6:12 morning 9:20 MPT 11:3,5,18 11:25 12:3,6 12:11,18 municipal 7:25 N N 3:1 N.J.S.A 4:17 name 4:1 6:13 6:16 10:1,2 10:3,24,25 11:1 Need 1:6 5:11 5:16 11:24 negatives 10:17 New 1:1,14,23 11:10 12:10 14:4 Notary 14:4 noted 12:11 notice 4:15,16 4:17,18 O O 2:1 o'clock 13:6 ObamaCare 8:1 obtained 12:9 obvious 7:8 obviously 7:7 7:8 Officer 11:7 Okay 6:5,25 9:17,23 online 7:16 open 9:19 operation 11:23 12:4,8 operations 11:19 12:1 opportunity 8:16 oriented 8:24 outs 7:9 outside 12:14 ownership 1:7 4:10 8:8 10:17 11:17 12:1 owning 8:7 owns 8:21 P p.m 1:16,16 13:3,8 PAGE 3:2 part 5:15,20 8:6 partial 1:7 4:9 partners 12:6 percent 8:8,9 8:12 12:2,2 person 8:1 place 4:19 14:8 plan 12:17 planning 1:1 4:3,9,13 5:8 5:12,15,18 6:20,22 9:11 please 4:23 6:10,14 point 9:1 police 7:25 political 8:17 politics 7:11 position 7:12 positive 10:7 10:13,15,19 10:20 positives 10:18 posted 4:18 potentially 10:17 present 7:6 presenting 9:5 presents 6:7 13:3 pretty 10:5 primary 11:18 probably 7:1 process 5:11 5:16,21 profit 8:24 progresses 7:2 prohibit 11:21 Properties 11:6,8,9 provide 4:23 12:21 providers 11:15 providing 12:12,19 provisions 4:17 public 1:2,12 4:8,14,19 14:4 publicly 11:9 published 4:16 purview 5:17 Q questions 6:25 7:5 9:3 R R 2:1 14:1 R-O-D-A-S 10:4 reading 7:16 real 8:6,20 11:10,13,13 11:17 12:13 12:14 really 7:12 rear 5:3 reason 8:2 reasons 10:13 recess 6:9 13:2,5 recognized 12:18 recommend 5:23 recommenda... 5:12 6:2 recommenda... 6:23 reconvene 6:8 record 4:25 6:14,21 7:3 9:3 10:1,2 10:25 13:1 redeveloping 12:14 refer 11:4 regulation 12:10 REIT 10:12 11:11,17 related 5:17 relation 4:9 RENZI 1:19 Reporter 14:4 REPORTERS 1:20 requests 11:25 required 4:13 requirements 4:12 resident 7:9 8:4 rest 8:11

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