$2M in Partial State Funding Provided to Heights University Hospital

On Oct 17, 2025

The State of New Jersey has provided $2 million in partial funding to allow Heights University Hospital in Secaucus to fund critical services for approximately the next two weeks. The hospital is operated by Hudson Regional Health, which assumed control of the former CarePoint hospitals in October 2024 and has invested more than $300 million into the system. These investments attempted to address the inherited deficiencies that were neglected, including the repayment of debts, reopening of shuttered service lines, modernizing facilities, and providing pay raises to unionized employees.

Despite these unprecedented investments, the Heights University Hospital continues to lose over $1.5 million per week, an unsustainable rate that jeopardizes Hudson County’s healthcare system. Sixty-five percent of Heights Hospital patients are uninsured, low-income, or otherwise vulnerable residents, leading to low reimbursement rates, a situation that is compounded by major cuts in Charity Care funding and Medicaid.

Dr. Nizar Kifaieh, president & CEO of Hudson Regional Health (HRH), commented, “I offer my thanks to our state leaders, and in particular Gov. Phil Murphy, Senator Raj Mukherji, and County Executive Craig Guy, for this partial funding commitment from the Department of Health. Unfortunately, while this short-term, two-week stopgap funding is certainly appreciated, it will not meaningfully address the dire financial challenges facing the hospital, most of which we inherited from the previous operators.  We look forward to continuing a collaboration with our elected officials, unions, essential workers, and community stakeholders that we hope will ensure a sustainable, long-term healthcare delivery system in the Heights.”

“I’m extremely proud of our Heights employees for continuing to provide the highest quality care for our vulnerable communities, despite the circumstances of the past several weeks,” said HRH Chairman of the Board, Yan Moshe. “Our goal has always been, and continues to be, to provide high-quality care at Heights Hospital, and I am hopeful that our elected officials will help us forge a path forward to sustain the hospital’s long-term operations.”

Over the next two weeks, HRH will work with elected officials to develop two paths forward for the future of the hospital. The first path is a plan to ensure the long-term stability of the hospital with a combination of funding from the state and other identified sources. This includes a $25 million appropriation through the state legislative delegation that is anticipated to be voted on during the lame duck legislative session.

The second path, in the absence of additional funding from the state, would result in a transition to a suspension of services due to the hospital’s financial distress and, eventually, a complete closure of Heights University Hospital.

Hudson Regional Health now operates a network of four acute care facilities comprising Secaucus University Hospital, Bayonne University Hospital, Hoboken University Hospital and Heights University Hospital in Jersey City.

To access more business news, visit NJB News Now.

Related Articles: