East Orange General Hospital in New Jersey is changing ownership, the commercial company said Friday.
Paige Dvorak, who will become the first female owner-CEO of a hospital in New Jersey, will continue to lead operations and take over 20% of the ownership. EOH Acquisition Group, the new owners, are aiming to stabilize the hospital, which has reported operating losses over the past two years.
“We are so excited about the future of this historic hospital and its impact on society,” said Dvorak, who has headed the 201-bed hospital since 2017. “The change of ownership will help accelerate the transformation of this vital community asset by ensuring that the hospital continues to deliver the quality care to patients and the community that they have come to rely on for over a century.”
The New Jersey Health Planning Board has signed an acquisition agreement pending approval by the State Department of Health.
The EOH Acquisition Group includes Dvorak, attorney Troy Schell and Ben Klein, who own more than three dozen mental health and drug addiction treatment centers. Investors will maintain existing services and integrate mental health and primary health care.
The new owners plan to open the first inpatient drug addiction treatment center in Essex County, create a new residential drug addiction treatment center, expand primary health care, family medicine and multidisciplinary services, and offer transcranial magnetic stimulation for depression and anxiety.
The East Orange General Hospital, which is the only emergency care facility in Essex County, is one of the few remaining independent hospitals in New Jersey. The venture went through Chapter 11 bankruptcy in 2015 after Los Angeles-based hospital commercial operator Prospect Medical Holdings acquired it for $ 84 million.
The hospital market in Trenton, NJ is highly concentrated, as determined by the Herfindahl-Hirschman Index, according to the Health Cost Institute’s analysis of commercial claims data. Inpatient prices in the Trenton region rose 9.3% from 2012 to 2014, Health Care Cost Institute. data Show. During this period, the hospital market moved from “moderate” to “highly concentrated”.
East Orange Hospital recorded an operating loss of US $ 11.2 million on revenues of US $ 80.9 million in 2020 and an operating loss of US $ 79.8 million on revenues of US $ 84 million in 2019. East Orange received $ 15.7 million in grants to fight COVID-19 in 2020.