CarePoint Health Files Chapter 11 Bankruptcy

CarePoint Health Systems Inc., a nonprofit operating three hospitals in New Jersey, has filed for Chapter 11 bankruptcy in Delaware amid significant financial challenges, including over $100 million in debt. The decision, driven by increased operational costs following the COVID-19 pandemic, insufficient state funding, and reimbursement issues, aims to restructure its finances and secure a stable future for its facilities. CarePoint has secured $67 million in debtor-in-possession financing to ensure uninterrupted patient care during the bankruptcy process. CEO Dr. Achintya Moulick emphasized the importance of this restructuring for the community, as CarePoint hospitals serve a large population of uninsured and underinsured patients. Local officials, including Jersey City Mayor Steven Fulop, have supported the move, highlighting the necessity of stabilizing these essential healthcare services. This Chapter 11 filing also coincides with plans to merge with Hudson Regional Hospital to form the new Hudson Health System.