A lawsuit filed by insurance company GEICO has been dismissed. The suit was related to billing practices at healthcare entities associated with Hudson Regional Hospital and its owner Yan Moshe.
A developing crisis
CarePoint Health is dissolving and has been liquidating its assets, including Bayonne Medical Center, Hoboken University Medical Center, and Christ Hospital in Jersey City.
Avery Eisenreich, owner of nursing home operator Alaris Health, purchased the land of Bayonne Medical Center and 70 percent of the land of Hoboken University Medical Center in November of 2019.
CarePoint has been searching for an operator for the facilities ever since, eventually signing a formal sale agreement with BMC Hospital LLC to operate Bayonne Medical Center. BMC Hospital LLC’s leadership is composed of investors from the surgery-center chain Surgicore.
CarePoint has also signed a letter of intent with RWJBarnabas Health whereby that company would acquire operations at both Hoboken University Medical Center and Christ Hospital.
Meanwhile, Hudson Regional Hospital in Secaucus has closed on the purchase of the real estate of Bayonne Medical Center for $76 million and is in contract with Eisenreich to acquire Hoboken University Medical Center for $144 million.
When the sales close between Hudson Regional Hospital and Eisenreich, Hudson Regional Hospital intends to operate the hospitals, not BMC Hospital LLC. This has sparked a war between the two entities over who will operate the hospitals.
Litigation takes center stage
The litigation brought by GEICO was previously a point of contention for BMC Hospital LLC, which questioned why Hudson Regional Hospital should not be allowed to purchase or operate Bayonne Medical Center. In turn, Hudson Regional pointed to similar litigation brought by The Allstate Corporation against SurgiCore, whose owners comprise the leadership of BMC Hospital LLC.
The GEICO lawsuit accused Hudson Regional Hospital and other entities associated with Yan Moshe of “fraudulent no-fault insurance charges.” The Allstate lawsuit made similar allegations against SurgiCore, alleging “fraudulent no-fault insurance charges.”
The GEICO claims against all the parties named in the suit: Hudson Regional Hospital, Yan Moshe, Dr. Regina Moshe, Dr. Nizar Kifaieh, and CitiMed, have been dismissed.
“We are pleased with this voluntary dismissal by GEICO,” said Yan Moshe, Chairman of Hudson Regional. “This represents the beginning to a transparent and highly functional relationship that focuses on access to high quality medical care to the millions of GEICO- insured patients in New York and New Jersey.”
“I couldn’t have asked for a better outcome for this claim with GEICO,” said Dr. Regina Moshe, CEO of CitiMed. “At CitiMed, we are proud to provide excellent care to all patients, and we are especially happy to continue a great relationship with GEICO-insured customers.”
“On behalf of our staff, I am very proud of the reputation we have established at Hudson Regional Hospital as its high-quality acute care facility during our three years of operation,” said Dr. Nizar Kifaieh, President and CEO of Hudson Regional Hospital. “The voluntary dismissal of the claim by GEICO against HRH and Premier Anesthesia was a logical resolution and a testament to our standing in the community.”
“Importantly, after a productive dialogue with GEICO, including an appeal to the Federal 2nd Circuit Court, the lawsuit has been dismissed,” said Keith J. Roberts, counsel to Yan Moshe and Hudson Regional.
“The outcome is a final disposition, forever precluding the re-litigation of any of the claims which were the subject of their previously filed Complaint,” said Charles Horn, counsel to Regina Moshe and CitiMed.
Both Hudson Regional Hospital and BMC Hospital LLC remain confident that they will prevail and that the Department of Health and courts will rule in their favor. While other litigation proceeds, and the entities hurl additional allegations at each other, the hospital crisis in Hudson County continues.
For updates on this and other stories, check www.hudsonreporter.com and follow us on Twitter @hudson_reporter. Daniel Israel can be reached at [email protected]