CarePoint Health Systems, based in Jersey City, New Jersey filed for Chapter 11 protection on November 3.

CarePoint secured $67 million in new funding to avoid interruptions in patient care and ensure its hospitals remain open, according to a Nov. 3 press release.

The system includes Bayonne (NJ) Medical Center, Christ Hospital in Jersey City, New Jersey, and University Medical Center in Hoboken (NJ). Its hospitals provide care to more than 60% of Hudson County’s population. Additionally, up to 65% of its patients are uninsured or underinsured, the release added.

CarePoint is also move forward with plans to affiliate with Hudson Regional Hospital in Secaucus, New Jersey, under the management services organization Hudson Health System. Hudson Regional already owns Bayonne Medical Center and will acquire its other two properties as part of the partnership agreement.

CarePoint has taken steps to ensure employee salaries and benefits are maintained as part of the financial restructuring, according to the release.

The decision to file for Chapter 11 was prompted by insufficient state funding, reimbursement issues and increased hospital operating costs following the COVID-19 pandemic, the release said.

Achintya Moulick, MD, will serve as president and CEO of CarePoint, the release said.

“We chose this path after carefully evaluating all available options that would ensure the continued delivery of uninterrupted care while allowing for this necessary financial restructuring,” Dr. Moulick said in the release. “Safety net hospitals like Christ Hospital and Hoboken University Medical Center are vital lifelines for the uninsured, underinsured and most vulnerable populations. We are proud to have kept our doors open over the past five years despite an extremely difficult environment.