1 NEW JERSEY STATE HEALTH PLANNING BOARD 2 LANGSTON … · 2 1 SPEAKER: PAGE: 2 Martin Bieber 6 3 George Johnson 7 4 Jacqueline Burgess 9

1

1 NEW JERSEY STATE HEALTH PLANNING BOARD

2 LANGSTON HUGHES ELEMENTARY SCHOOL

3 EAST ORANGE, NEW JERSEY

4

5 JUNE 24, 2015 6:00 PM

6

7

8 THE PUBLIC HEARING OF:

9 THE APPLICATION FOR

10 CERTIFICATE OF NEED

11

12 PROSPECT MEDICAL HOLDINGS

13 TO ACQUIRE

14 EAST ORANGE GENERAL HOSPITAL

15

16

17 B E F O R E: CATHERINE A. AINORA, CHAIR

18 SUSAN E. OLSZEWSKI

19 CONNIE BENTLEY McGHEE

20 ELLSWORTH HAVENS

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22

23

24

25

STATE SHORTHAND REPORTING SERVICE, INC.

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1 SPEAKER: PAGE:

2 Martin Bieber 6

3 George Johnson 7

4 Jacqueline Burgess 9

5 Rochelle Evans 10

6 Ted Green 13

7 Al Ortiz 14

8 Richard Grodeck 16

9 Thomas Gonano 18

10 Gary Miles 18

11 Tom Puryear 20

12 Amir Hashemi 24

13 Sheila Oliver 26

14 Lennox Alves 29

15 Dana Owens 31

16 Goldie T. Burbage 33

17 Miryam Torres 33

18 David Hill 37

19 Lester Taylor 39

20 Glendean Nelson 44

21 Justine Harris 45

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23

24

25


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1 MS. AINORA: Can everybody take their

2 seat? We want to start, if you could take your

3 seat.

4 This is a public hearing for the

5 Certificate of Need of Prospect Medical Holdings

6 to acquire East Orange General Hospital. My name

7 is Cathy Ainora, I am a member a State Health

8 Planning Board. Also in attendance are members of

9 the State Health Planning Board, Connie Bentley

10 McGhee, Susan Olszewski, Ellsworth Havens, and

11 we're expecting one more member, but we'll start

12 without him.

13 This is a public hearing of the State

14 Health Planning Board in relation to Prospect

15 Medical Holdings to acquire East Orange General

16 Hospital. The State Health Planning Board deemed

17 the application complete. And in accordance with

18 the requirements of law, the State Health Planning

19 Board is required to hold a public hearing on this

20 application within 30 days of this action.

21 Adequate notice of this hearing has been published

22 in accordance with the provisions of N.J.S.A.

23 26:2H-15.8, notice was sent to the Secretary of

24 State who posted the notice in a public place.

25 Copies of the hospital's Certificate of


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1 Need are available for review at East Orange

2 Public Library, the New Jersey State Library in

3 Trenton, and the Department of Health.

4 Information gathered tonight at this

5 hearing will be reviewed by the full State Health

6 Planning Board. In addition to reviewing that,

7 the application of Prospect Medical Holdings, and

8 the department staff analysis and recommendation,

9 which will be at another public hearing.

10 Although not all members of the State

11 Health Planning Board are present tonight, this

12 community public hearing is being transcribed.

13 And the transcript, along with any written

14 comments submitted tonight, will be made available

15 to all board members, along with any additional

16 written submissions that come prior to the final

17 review of this application.

18 There will also be limited time

19 available at the next public meeting of the State

20 Health Planning Board to hear from members of the

21 public. At that meeting, the applicant will

22 present the application and answer questions that

23 board members may have.

24 In the interest of making efficient use

25 of time, each speaker will be limited to three


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1 minutes. If you have longer written comments with

2 you, please provide a copy to us and they will be

3 added to the record. Anyone interested in

4 speaking tonight should have signed up. There's a

5 sign-in at the entrance. Jonathan, if any

6 additional people come up, will you let us know?

7 Thank you.

8 If anyone wants to submit written

9 comments after tonight's hearing and before the

10 actual board meeting, we urge you to do so. The

11 comments must be submitted no later than

12 Wednesday, July 1st, and should be addressed to

13 the State Health Planning Board in care of the

14 Department of Health.

15 For those of you who are unfamiliar with

16 the Certificate of Need process, the State Health

17 Planning Board will vote on a recommendation as to

18 the decision of this application, which will then

19 be submitted to the Commissioner of Health. The

20 State Health Planning Board's hearing is part of

21 the Certificate of Need process and your comments

22 will be considered as we review issues related to

23 health planning, hospital and related healthcare

24 services, and access to healthcare. Your comments

25 are an important part of this process and will be


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1 considered along with all the materials that have

2 previously been submitted.

3 The board can either recommend approval

4 of that application, approval with conditions, or

5 it can deny the application. The commissioner

6 will then make the final decision on the

7 application after the board makes its

8 recommendation.

9 So I'm going to ask, would the applicant

10 like to say a couple words prior to having

11 public -- conversation from the public? We're

12 good.

13 Okay. Come up, say your name, spell it

14 for the transcriber, and who you represent.

15 MR. BIEBER: Thank you. My name is

16 Martin Bieber, B-I-E-B-E-R, and I'm the interim

17 president and CEO of East Orange General Hospital,

18 I've been with the hospital now just a handful of

19 months, to help them through the process of this

20 transition. And I'm here to urge the State Health

21 Planning Commission or board to expeditiously

22 approve this application.

23 Having gone to the hospital, I learned

24 over the past two years that the hospital has gone

25 through a very deliberative process to understand,


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1 and to change the status quo. The status quo is

2 not sustainable. And as a result of that process,

3 they found a partner that would meet their

4 objectives, adhere to the mission of the

5 institution, and align the mission of the

6 institution to the community.

7 They've seen a fair number of folks who

8 were potential suitors and settled on Prospect as

9 a result of a very deliberative process. Part of

10 the evidence that they looked at was number one,

11 Prospect's commitment to a variety of other states

12 and prior acquired institutions and their

13 commitment to the community is very much in line.

14 This is the key to the remarks I wanted

15 to make: East Orange Hospital is the major

16 employer to the City of East Orange. We're a

17 vital hub to the community and we look to continue

18 to be a service to the community.

19 I want to thank the Department of Health

20 for their help in getting this process moving

21 forward, the extraordinary members of the

22 department, and we look forward to the next steps

23 in the process. Thank you.

24 MS. AINORA: Thank you. George Johnson.

25 DR. JOHNSON: Good evening. My name is


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1 Dr. George Johnson, J-O-H-N-S-O-N. I've been on

2 the staff of East Orange General Hospital for 30

3 years as a practicing urologist. I'm a member of

4 the board of trustees and I've served as associate

5 chief of the office. My position as a physician

6 at East Orange General Hospital gives me a unique

7 perspective on the proposed acquisition of the

8 hospital by Prospect Medical Holdings.

9 I'm encouraged by various aspects of

10 Prospect's track record of providing integrated

11 programs and their access to care. The model

12 emphasizes a collaboration of hospitals,

13 physicians, health plans, and other providers.

14 They're committed to preserve and keep healthcare

15 and behavioral health services, retain our

16 employees, our board, and invest millions of

17 dollars in new resources.

18 Prospect has demonstrated success in

19 operating urban hospitals in Texas, California,

20 Rhode Island, similar to East Orange General

21 Hospital. Prospect is a nationally recognized

22 healthcare system known for its high quality

23 healthcare services. They've successfully

24 operated a growing number of hospitals, health

25 clinics, out-patient centers, and physician


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1 networks and have demonstrated a clear commitment

2 to advancing the mission of East Orange General

3 Hospital. Prospect Medical Holdings has shown

4 quite clearly it is the ideal partner to ensure

5 the future of East Orange General Hospital. Thank

6 you.

7 MS. AINORA: Jacqueline Burgess.

8 MS. BURGESS: Good evening. My name is

9 Jacqueline Burgess, B-U-R-G-E-S-S. I am the

10 director of the emergency department and patient

11 admissions in East Orange Hospital. I've been

12 there for 24 years. I've transitioned to East

13 Orange General Hospital. This acquisition of

14 Prospect Holdings will be an exciting time. Many

15 said we wouldn't last, year after year, East

16 Orange Hospital, yet we still stand. Prospect has

17 shown to us they're dependable. And what is this

18 for, the 32,000 admissions per year. I love my

19 patients, my families. There's nothing more in

20 the profession to know that we have the

21 opportunity to give more services to the

22 community, much needed programs, and hope for the

23 community.

24 So please join me as we move into to a

25 new adventure, a new chapter. And thank you for


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1 your time.

2 MS. AINORA: Rochelle Evans.

3 MS. EVANS: Good evening. My name is

4 Rochelle Evans and I've been a registered nurse

5 since 1971. And I've been vice-president for

6 patient care services at several other hospitals

7 in New York and New Jersey. I'm currently the

8 health officer and director of health services for

9 the City of East Orange. And I'm going to read to

10 you this statement, but I'd like to elaborate a

11 little more after I read my statement.

12 East Orange General Hospital is a

13 trusted safety net resource and a well respected

14 regional provider. This hospital has long been

15 known as a leader in meeting the diverse

16 healthcare needs of Essex County and the City of

17 East Orange.

18 And as you've heard tonight, the scope

19 of services range from in-patient, out-patient,

20 chronic disease, community education, surgical

21 intervention, and mental health, most of all.

22 Prospect -- I did my homework, I looked

23 them up on the internet. They started out back in

24 1996 and they've turned a lot of other hospitals

25 around and hospitals such as East Orange that have


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1 been in dire financial straits have been saved.

2 And I do believe that this partnership will be a

3 win-win-win situation. And I say it three times

4 win-win-win. As the city health officer, it has

5 been and still is my personal mission to support

6 healthy living and a healthful quality of life for

7 the nearly 70,000 residents of East Orange and the

8 county of Essex, which is comprised of nearly

9 800,000 people.

10 My own past experience as a hospital

11 executive in New York and New Jersey has shown me

12 what makes a hospital successful. And that is,

13 number one, community involvement. That's what we

14 have here this evening. Our elected officials and

15 legislators, our city council members, our mayor,

16 our county executive, even the past governor, you

17 probably know who I'm talking about, Governor

18 Codey supported this hospital. They listened to

19 the residents who live here and they fought year

20 after year to keep this hospital open and to make

21 sure that the services are acknowledged as an

22 important aspect of healthy living for this

23 population.

24 Number two, fiscal accountability.

25 That's what Prospect Medical is bringing to the


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1 table, along with Mr. Marty Bieber, the CEO, who

2 has worked with distressed hospitals in south

3 Jersey. But don't leave out our legislators

4 again. They have gone to bat to make sure our

5 reimbursements are fair and equitable. Our tax

6 base in the City of East Orange will increase.

7 Staff loyalty number three. There are

8 people working at East Orange General Hospital who

9 realize that commitment to excellence is their

10 personal key to success. You've heard from the

11 director of the emergency room. Together, both of

12 these entities provide a strong and proven track

13 record in the treatment and care and support of

14 individuals especially those coping with chronic

15 disease and mental illness. This merger --

16 MS. AINORA: I'm sorry.

17 MS. EVANS: I ran out of time.

18 MS. AINORA: We'll give you 30 seconds.

19 MS. EVANS: This merger is not only

20 between Prospect Medical and East Orange, the

21 community is a part of this win-win-win scenario.

22 As a professional dedicated to population health,

23 I go on record as saying I endorse this merger and

24 the acquisition of East Orange General Hospital.

25 Thank you.


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1 MS. AINORA: Thank you. Councilman

2 Green? Ted Green.

3 COUNCILMAN GREEN: Good evening.

4 Councilman Ted Green. I am not only representing

5 the council this evening, I'm here for

6 Councilwoman Alicia Holman, and I am acting as the

7 vice chair. I am not only honored to speak in

8 reference to East Orange General Hospital, but

9 also at a time when no fewer than four Essex

10 County hospitals have closed within close

11 proximity to East Orange, it is very imperative

12 for the citizens we represent that the partnership

13 be supported and approved.

14 Not only that, by Prospect Medical

15 coming into this market as a full nonprofit chain,

16 therefore it will be paying not only taxes to East

17 Orange, to Essex County, and to the State of New

18 Jersey, as they do in every other state in which

19 they operate. In the broad sense, the entire East

20 Orange economy will continue to benefit and even

21 be allowed to blossom.

22 By Prospect maintaining East Orange

23 General as an acute care hospital, employees will

24 keep their jobs, local businesses will benefit,

25 consumer spending will increase. And the hospital


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1 and city will remain a daily destination point for

2 patients, visitors, physicians, consultants, and

3 vendors, and suppliers. So I fully support this

4 effort and this partnership. Thank you.

5 MS. AINORA: Al Ortiz.

6 MR. ORTIZ: Good evening. My name is Al

7 Ortiz, I'm the director of the Essex County

8 Correctional Facility. I'm here on behalf of

9 County Executive Joseph DiVincenzo who had a

10 scheduling conflict. But for that conflict, he

11 would have been here himself. And I have some

12 comments that he would want the committee to hear.

13 He enthusiastically supports the fact

14 that East Orange General Hospital and Prospect

15 Medical Holdings have entered into an agreement

16 that will keep East Orange Hospital as an acute

17 care hospital and provide healthcare services for

18 the residents of East Orange and the surrounding

19 communities. He urges the approval of the

20 acquisition of East Orange by Prospect Medical.

21 This acquisition is different from other recent

22 hospital acquisitions that have recently taken

23 place in Newark. Prospect Medical will be

24 providing funding over the next few years to cover

25 the services and the needed improvements at the


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1 hospital, in addition to providing funding for

2 creation of a hospital community health

3 improvement board that create programs to meet the

4 health needs of the residents.

5 One of the -- I'm here today as the

6 director of the correctional facility. East

7 Orange General Hospital serves a vital role to

8 Essex County and four other New Jersey counties as

9 a provider of in-patient services to individuals

10 who are incarcerated in the Essex County

11 Correctional Facility by the way of East Orange

12 when they need medical care.

13 These services are coordinated between

14 the counties, East Orange and County Correctional

15 Facility are specific for a number of years and

16 require specific security staffing, on call, and

17 transport criteria, which East Orange has met in

18 the most professional manner. Prospect's

19 agreement to continue doing this very specialized

20 area of care is certainly one indication of their

21 commitment to Essex County and the region.

22 In closing, we're confident that this

23 acquisition will result in a stronger more

24 financially stable East Orange General Hospital

25 for years to come and will preserve and strengthen


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1 the health safety net resource that we have

2 maintained for the residents of Essex County for

3 more than a hundred years. On behalf of the

4 county executive, I thank you.

5 MS. AINORA: Richard Grodeck.

6 MR. GRODECK: Good evening. My name is

7 Richard Grodeck, G-R-O-D-E-C-K. I am and have

8 been a member of the board of trustees of the

9 hospital for a number of years. And I'm here

10 tonight to advise the panel that the board of

11 trustees unanimously supports the acquisition of

12 the hospital by Prospect Medical Holdings.

13 I want to spend a couple minutes

14 discussing the process that brought us to this

15 point. With recognition, as we know, as you've

16 heard, the hospital provides an essential safety

17 net to the community and to the city. We set out

18 to find -- it's actually about two years ago, we

19 began the process of searching for a suitable

20 partner to bring us forward into the next decade,

21 into the next years to come, with a partner to

22 provide healthcare services for the residents of

23 the community.

24 Twenty requests for proposals were

25 submitted to the hospital and healthcare systems


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1 in New Jersey and across the country looking for

2 the right partner. Eventually we settled on three

3 finalists and those finalists were submitted to

4 submitted to intense scrutiny and a deliberative

5 process. And eventually we settled on Prospect

6 Medical as our finalist.

7 When they were selected, that process

8 then received intense scrutiny within the hospital

9 by the leadership team to confirm that Prospect

10 Medical was in fact the right partner for our

11 future.

12 As a result of that deliberative

13 process, we are now convinced more than ever that

14 this transaction should go forward, really for two

15 reasons. Number one, they have a proven track

16 record in urban communities just like ours, a

17 record of success. They also have experience,

18 significant experience, expertise, with the areas

19 in which we are known, largely behavioral health.

20 So for those reasons, we are now more convinced

21 more than ever that they're the right choice, the

22 right partner for our future. Approval of this

23 transaction will mean the hospital will continue

24 as an acute care hospital providing necessary

25 critical services to the members of this


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1 community. So again we endorse the transaction.

2 Thank you.

3 MS. AINORA: Thomas Gonano?

4 MR. GONANO: I apologize, I signed in on

5 the wrong list, but I support the transaction.

6 MS. AINORA: You support the

7 application?

8 MR. GONANO: I've been a resident and I

9 support it, but I signed the wrong sheet.

10 MS. AINORA: Gary Miles.

11 MR. MILES: My name is Gary Miles,

12 M-I-L-E-S. I'm here today, I've worked at East

13 Orange as an ER technician. I'm one of the

14 employees who will be there. It's a special place

15 for us. It's a place, regardless whether you can

16 pay or not, you're treated with dignity. I'm

17 coming to you tonight asking you to guys approve

18 this for us.

19 We've doing our research on Prospect,

20 it's a no brainer for us. We really went and we

21 checked these guys out. And for somebody to come

22 to our community and accept us, based on what we

23 have, whether they're willing, to uplift our

24 community is rare today. So, you know, for the

25 lady who lives down the street from us to come to


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1 the hospital, it's important for the person who

2 lives across town who can only spend three, four

3 dollars to get into a cab to get to us. It's

4 important to us. Without a hospital to go to, for

5 these people it would be $30. Who can we find to

6 go there? We are on Central Avenue, all the main

7 stores, the main strip. It's a main strip. I

8 mean we really checked these guys out. And

9 they're logical to be the pulse in our transit

10 village, the city -- the pulse of the city is up

11 like never before. I'm more excited because we're

12 part of it. I want to be part of it in this city,

13 it's our hearts and families.

14 We need them to be here, we're asking

15 that you approve it because it's not just about

16 me, it's about all of us. Because we don't just

17 cover East Orange, we cover Orange, too, and we

18 cover 10 percent of the Oranges because they're

19 not wanted in the other community. But we take

20 them in because, you know what, it's not about us,

21 it's about the patient. And what we can do to

22 change, like Dr. Johnson said, we have health

23 fairs for the community at churches, that's how we

24 found out about Prospect. Because some of them

25 don't want to get checked. Through a community


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1 outreach, we catch it. Through the barber shop,

2 we catch it. So we need them.

3 So I'm asking you to approve the sale so

4 we can continue to stretch and go forward. But

5 not only that, we can create something never been

6 done before in a community hospital, that like

7 it's never been before, and bring us up, but also

8 elevate us on education. They want us to do that.

9 And they came to our meetings and they

10 asked us about our issues. They came to our

11 meeting and they asked us the tough questions and

12 we asked them the tough questions. And guess

13 what, we got answers. That's why we're here, not

14 for a fashion show. We came because we're a

15 community that needs a hospital in the center part

16 of this region. Thank you.

17 MS. AINORA: Thank you. Tom Puryear.

18 MR. PURYEAR: First name Tom, last name

19 Puryear, P-U-R-Y-E-A-R. Good evening, I am the

20 president of the Oranges and Maplewood Unit of the

21 NAACP. Our unit's eleven communities include:

22 Orange, East Orange, West Orange, South Orange,

23 Maplewood, Millburn, Livingston, Bloomfield,

24 Belleville, Nutley and Verona.

25 In March of this year, our organization


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1 was made aware of the Navigant Study that was

2 presented to the New Jersey Health Care Facilities

3 Financing Authority. As you know, the report was

4 designed to evaluate the greater Newark healthcare

5 services. After reading the hundred page plus

6 document, our unit sought the advice of healthcare

7 experts and our elected officials in order to

8 assist the impact of the possibility of

9 implementation of Navigant report.

10 In order to move forward, we looked at

11 census information. Between 1950 and 2010, East

12 Orange lost approximately 15,000 residents and

13 Orange lost about 8,000 residents. Also during

14 those -- the 2010 census, there are 5,000 housing

15 units that are vacant in the City of East Orange,

16 and another 2,000 in Orange.

17 The census -- the 2010 census report

18 dramatically documents the municipal residents who

19 would be immediately impacted by the proposed

20 modifications of the healthcare capabilities

21 offered at East Orange General Hospital. Our

22 residents, either from a loss or a significant

23 reduction in employment opportunities, reduced

24 healthcare service, and accessibility to

25 healthcare, and the creation of a depressed local


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1 economic condition, would negatively be impacted

2 by the East Orange General Hospital becoming an

3 ambulatory center without acute care capability.

4 We, the Orange and Maplewood NAACP,

5 believe our catchment communities have lost

6 extensive health care services and access with the

7 closing of the Columbus Hospital in Newark, Orange

8 Memorial Hospital in Orange, and Irvington General

9 in Irvington. Our unit believes that the loss of

10 this healthcare facility and the services formerly

11 offered by these institutions, coupled with the

12 proposed modification being proposed for East

13 Orange General would and has left too many

14 residents in a crisis in regards to the healthcare

15 needs.

16 As such, the Oranges and Maplewood Unit

17 of the NAACP supports the financial support that

18 is being proposed by Prospect Medical. And,

19 therefore, encourages the state to approve the

20 acquisition of East Orange General by Prospect

21 Medical Holdings.

22 Contrary to the recently released

23 Navigant report suggesting that East Orange become

24 an ambulatory care facility, our unit believes

25 that Prospect Medical Holdings is committed to


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1 keeping and growing a financially stable,

2 innovative and culturally relevant hospital for

3 the long term, offering a continuum of quality

4 safety net services that are accessible to the

5 region's population.

6 We are aware that Prospect Medical will

7 acquire all of the debts of East Orange Hospital

8 and has committed to being responsible for all its

9 liabilities and debts. Importantly, Prospect

10 Medical Holding has committed to fund a new

11 community health initiative in the City of East

12 Orange, with the goal of establishing new

13 preventive and health improvement programs,

14 especially targeted for people of color.

15 Our organization supports the

16 acquisition of East Orange General Hospital by

17 Prospect Medical Holdings and believes that our

18 municipal leaders will use the tax revenues

19 efficiently and appropriately. Our unit believes

20 that the effective management of the municipal

21 resources will lead to a rebirth and growth of the

22 immediate community and therefore increase the

23 healthcare needs for all our residents. Thank

24 you.

25 MS. AINORA: Amir Hashemi.


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1 MR. HASHEMI: Good evening. My name is

2 Amir Hashemi, A-M-I-R H-A-S-H-E-M-I. I'm here

3 representing the East Orange Chamber of Commerce,

4 I'm a long time business owner of East Orange, and

5 surrounding city. I'm also a member of the

6 trustees in East Orange General Hospital. On

7 behalf of business owners and community leaders in

8 East Orange, Orange, and surrounding communities,

9 we are asking that you approve the asset

10 acquisition of East Orange General Hospital by

11 Prospect Medical Holdings. Prospect Medical has

12 demonstrated ongoing success in operating urban

13 hospitals similar to East Orange General in

14 California, Texas, and Rhode Island, much to the

15 benefit of the patients they serve and the

16 economics of the cities in which those facilities

17 are located.

18 For many years, until recently, I've

19 been honored to serve and oversee the operation of

20 another facility in this community by providing

21 residential facilities that address the varied

22 psychosocial development need of at-risk youth of

23 this community. We've been providing long-term

24 therapeutic home for adolescent boys in crisis,

25 care services for adolescent females. The


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1 existence of East Orange General Hospital has been

2 an integral part of our success. With the recent

3 closure of the surrounding hospitals, we've been

4 witnessing the devastating effect it can have on

5 both the business community and the community at

6 large.

7 Prospect medical will endeavor East

8 Orange Hospital to continue to serve our community

9 well. As you may know, East Orange General

10 Hospital has long provided mental health services

11 to our community. And with Prospect health

12 services, we can continue expanding our offering

13 in this area.

14 In addition, the resources Prospect can

15 bring to bear would be vital to our ability to

16 maintain our facilities, our grounds, and building

17 space, particularly our emergency and operating

18 rooms are in need of facelift and upgrade. We are

19 even in need of new beds and other ordinary

20 medical equipment. These are just a few of the

21 basic facilities we need that we are unable to

22 fulfill at this time, given the current economic

23 realities.

24 With the commitment to keep East Orange

25 General Hospital as an acute care hospital while


26

1 maintaining and investing in wider services,

2 Prospect's presence would ensure jobs, tax

3 revenue, and contribution to local businesses and

4 their economy.

5 In short, East Orange General Hospital

6 will be strengthened as a vital economic entity

7 for Essex County and beyond for years to come.

8 Thank you for your time.

9 MS. AINORA: Sheila Oliver.

10 ASSEMBLYWOMAN OLIVER: Good evening.

11 I'm pleased to have the opportunity to participate

12 in this hearing this evening and formally record

13 my wholehearted support of the pending acquisition

14 by Prospect Medical.

15 MS. AINORA: Could you spell your name?

16 MS. OLIVER: Sheila Oliver, S-H-E-I-L-A

17 O-L-I-V-E-R. For the past 11 years, I have worked

18 closely with the leadership of East Orange General

19 Hospital as well as its physicians and its

20 ancillary healthcare professionals and support

21 staff. Probably about eight to nine years ago, I

22 served as a member of the trustee board. So I am

23 intimately aware of the kind of work that has been

24 invested in sustaining East Orange General

25 Hospital as the last remaining community-based


27

1 private hospital in Essex County. I've witnessed

2 the commitment of the auxiliary and its dedicated

3 volunteers, the broad support that's garnered by

4 the East Orange General Hospital Foundation and

5 the subsidiary Essex Valley Healthcare. The

6 hospital's board has worked vigorously in

7 developing a sound strategic plan. And after

8 rigorous review and vetting determined that the

9 best partner for the hospital's future was

10 Prospect.

11 And I am involved intimately with every

12 hospital in this region. And you can imagine

13 because of my work in the legislature, I am often

14 called, with my colleagues, to really stay on top

15 of issues that are affecting the healthcare

16 delivery network in this part of the state. East

17 Orange General Hospital fulfills a unique role.

18 And I think Mr. Miles spoke to you earlier pretty

19 much touched upon there is a patient population

20 that would not receive the level of care, post

21 care as patients receive from East Orange General

22 Hospital.

23 Community-based private nonprofit

24 hospitals are a dinosaur. If we look all around

25 the country and look right within our own state,


28

1 some of the business models that our hospitals

2 operate on will never any longer do that. You

3 know, several miles away, we have another

4 city-based hospital where its physicians have to

5 be made. This region has in fact lost significant

6 numbers of healthcare institutions. I represent

7 Orange in the legislature. We had that hospital,

8 I represented Montclair in the legislature. We

9 we've seen that hospital, Mountainside, change

10 hands corporately two or three times. So we know

11 that the future of healthcare delivery going

12 forward is going to be partnership with hospitals

13 like East Orange General and private sector

14 entities.

15 I, too, like Mr. Miles have checked out

16 Prospect Holding. I think they've done a laudable

17 kind of performance in California, with some of

18 the hospitals they've gotten involved in, South

19 Central Compton area. I think that -- I also have

20 my ear to the ground in the community. And the

21 people of East Orange are very unnerved that this

22 institution will not remain anchored here. East

23 Orange General is the largest employer in this

24 town, the East Orange Veterans Administration has

25 a hospital here. Those two healthcare


29

1 institutions are a lifeline to people in this

2 immediate community.

3 I believe that shuttering the doors of

4 East Orange General would be a travesty for this

5 community. And if we do not have this partnership

6 with Prospect, those doors will subsequently

7 shutter. The State of New Jersey is broke, it has

8 no way of continuing to provide charity care

9 funding.

10 And as I stand here on the eve of my

11 colleagues voting on the budget tomorrow, we will

12 vote on a budget where every hospital in the state

13 has had significant reductions in subsidies and in

14 support, in charity care. We know that healthcare

15 is the backbone of the U.S. economy. And it's

16 going to be even more so in the next decade. It

17 is the backbone of New Jersey's economy as well.

18 East Orange deserves to be a player in

19 terms of the growth and expansion of healthcare.

20 Reaches. Thank you.

21 MS. AINORA: Lennox Alves.

22 DR. ALVES: Good evening, everyone. My

23 name is Lennox Alves, L-E-N-N-O-X A-L-V-E-S.

24 I'm currently the chairman of surgery at East

25 Orange General. And over the last 22 years, I've


30

1 made East Orange General Hospital my home. I've

2 had the opportunity of providing surgical care to

3 patients from all walks of life who live primarily

4 in East Orange, Orange, and Irvington. My

5 surgical practice at East Orange reflects a wide

6 range of procedures and includes both emergencies

7 and active cases.

8 As a long standing member of the medical

9 staff of East Orange, I strongly feel that unique

10 position to -- I strongly feel that I have a

11 unique perspective on the proposed acquisition of

12 the hospital by Prospect Medical Holdings. Of

13 course, we've had some challenges in East Orange

14 with our physical plant and equipment. But I

15 certainly hope that changes with the approval here

16 of Prospect Medical taking over the hospital. I'm

17 encouraged by Prospect's record of creating

18 innovative programs and improving clinical

19 performance. Specifically, I strongly feel

20 they'll recruit and retain experienced nursing

21 staff, improve the educational training of current

22 nurses, as well as improve the physical plant and

23 initiate new services at East Orange General, all

24 of which is good for the community that we serve.

25 Prospect has done this before, as my


31

1 colleagues have mentioned, operate hospitals in

2 various states here in the U.S., urban hospitals

3 specifically. And East Orange General Hospital is

4 easily accessible and provides acute care for

5 residents of East Orange, Orange, and Irvington,

6 many of whom fully depend on public transportation

7 for access. And keeping the doors open of East

8 Orange will maintain access to the full spectrum

9 of medical care for these patients.

10 In closing, Prospect's creativity and

11 innovation will lead to best practices and improve

12 the quality of care for all our patients. Hence,

13 this is a win-win-win situation for the entire

14 community. Thank you.

15 MS. AINORA: Dana Owens.

16 PASTOR OWENS: Good evening, Dana Owens,

17 D-A-N-A O-W-E-N-S. I am the pastor of Messiah

18 Church in East Orange and I also represent the

19 East Orange Clergy Association. I do have a

20 prepared statement for you, but I'd just like to

21 share a few words from the heart. We're living in

22 an ever-changing society and world. Our global

23 economy has moved beyond our blocks and

24 neighborhoods, beyond the state lines, and even

25 our country. And it seems as though how our


32

1 country has been founded on communities and

2 neighborhoods is changing. Neighbors no longer

3 know one another. We have to travel far distances

4 to go grocery shopping and even get health care.

5 I am here to support the sale to

6 Prospect Medical Holdings because I do believe

7 that we must hold on and remain true to who we are

8 as a country. And that's based and built upon

9 community. And I do believe with the promises

10 that have been made by Prospect that they will

11 ensure that East Orange will remain a vital

12 community.

13 There are many persons within my church,

14 my congregation, who seek healthcare there, who

15 cannot afford to travel anywhere else. It's

16 within the neighborhood, many walk, some receive

17 transportation, but it's a location for them. And

18 I just believe by closing or by not approving the

19 sale, that it would really do harm to this

20 community.

21 I am encouraged by Mr. Marty Bieber --

22 and the clergy have met with him on a few

23 occasions. He has not only assured us the doors

24 will remain open, but that dollars will be

25 invested in our community, that we would remain a


33

1 vibrant community. And so I'm standing here on

2 behalf of members of my church and members of the

3 clergy within the city to encourage you all to

4 approve the sale of East Orange to Prospect

5 Medical Holdings. Thank you for your time.

6 MS. AINORA: Goldie Burbage?

7 MS. BURBAGE: Good evening, everyone.

8 My name is Goldie T. Burbage, B-U-R-B-A-G-E. I am

9 the president of the historical society of East

10 Orange. Our goal is to increase awareness, pride,

11 and understanding about the history of East

12 Orange. And we are a group of volunteers whose

13 motto is preserving the past in the present to

14 prepare for the future. Ladies and gentlemen, the

15 future is now.

16 We have done our research with regard to

17 Prospect Medical, we have been very diligent.

18 We've found out about their history because we are

19 in the history business. And we are therefore

20 here to promote the merger with Prospect Medical

21 Holdings, the acquisition of East Orange General

22 Hospital.

23 You ask the question why. Well this is

24 my answer. Way back in 1926, when we relocated

25 from our humble beginnings in Newark as a


34

1 homeopathic hospital, we came to East Orange. For

2 a period of time, we were known as the homeopathic

3 hospital. But then we evolved into East Orange

4 General Hospital. We served as a trusted,

5 ever-present and caring pillar of our community.

6 With roots embedded in a successful

7 ongoing present, East Orange General Hospital is

8 entering this partnership with Prospect Medical

9 with the promise of an even better future.

10 Based on what we found out about

11 Prospect, two things became very apparent.

12 Especially the fact that this acquisition would

13 mean that Prospect has committed to invest monies

14 to improve the health status of residents in our

15 region. That's very, very important. It's

16 certainly a plus. And, second, together with

17 providing much needed healthcare services,

18 Prospect's plan to create a foundation will lead

19 to community services and partnerships and

20 projects. It will bring together people in a

21 renewed spirit of cooperation.

22 And let's not forget that East Orange

23 General Hospital's history has a wide arc. We

24 were the first in the United States to organize a

25 group of volunteer youth known as candy stripers


35

1 to assist in patient care and services, a program

2 that was emulated throughout the United States.

3 We were also at the forefront in establishing a

4 dialysis center in a building on Central Avenue

5 and South Grove Street. And that building still

6 stands.

7 So today, with Prospect's plan and for

8 many years that lie ahead, we will continue to

9 help write the history for the good of the people

10 in East Orange and the surrounding communities.

11 Thank you very much.

12 MS. AINORA: Miryam Torres.

13 MS. TORRES: Good evening. My name is

14 Miryam Torres and I'm representing an organization

15 based in East Orange called Hispanics for

16 Progress. We provide services to Latinos and to

17 multiethnic group of people residing in the City

18 of East Orange. Tonight as the president of

19 Hispanics for Progress, I have a profound and

20 positive influence in our country.

21 Latin Americans have had a profound and

22 positive influence in our country through their

23 strong commitment to family, faith, hard work and

24 service. At our organization, Hispanics for

25 Progress, we embrace hope that as we work together


36

1 to disrupt the cycle of poverty and the

2 marginalization that recent immigrants often face

3 and provide them with essential services to help

4 them to adjust, adapt and succeed, all society

5 will prosper.

6 Hospitals and access to healthcare are

7 very much a part of those essential services I

8 just spoke of. We have come to appreciate that as

9 an urban, community-based hospital that serves

10 minorities, multiethnic minorities, it's all races

11 and ethnicities, East Orange General Hospital has

12 been committed to helping the lives of the high

13 risk populations, many of them recent immigrants,

14 while building community relationship to better

15 their wellbeing.

16 East Orange General Hospital and

17 Hispanics for Progress share much in common in our

18 mission to serve the vulnerable and underserved

19 and make this world a better place for all

20 citizens, coming together, keeping together, and

21 working together, will continue to define progress

22 and success for us and East Orange General

23 Hospital as they join with Prospect Medical family

24 of hospitals.

25 It is my understanding that Prospect


37

1 believes in the core mission of East Orange

2 General as a provider of health care for

3 minorities and the underserved. They believe in

4 the excellence of services and programs that help

5 strengthen the communities they serve in many

6 ways.

7 In conclusion, it is my organization's

8 believe that once approved, the new East Orange

9 General Hospital, with Prospect Medical in the

10 lead, will partner with other healthcare providers

11 and community leaders like ourselves, to not only

12 to improve care, but to address such root-cause

13 social issues as access to appropriate preventive

14 care while breaking down cultural and language

15 barriers. And this is all for East Orange

16 residents, and not just for East Orange residents,

17 but for the multiethnic community living in

18 surrounding areas that come to East Orange General

19 Hospital for health care. So we really appreciate

20 your support when you vote for this. Thank you so

21 much.

22 MS. AINORA: Thank you. David Hill.

23 MR. HILL: Good evening. My name is

24 David Hill, H-I-L-L, I'm the president of CABID

25 and our main purpose is to promote commerce and


38

1 investment along Central Avenue, and to ensure

2 cooperation among business and the community.

3 CABID supports the acquisition of East Orange

4 Hospital by Prospect Medical Holdings. Prospect's

5 intention to invest monies in the hospital will be

6 a plus, not only for health care of our citizens,

7 but also for the business and commerce of Central

8 Avenue. With more than a thousand employees, many

9 of whom live in our city, East Orange General is

10 an economic engine, which keeps our downtown

11 businesses running. And with Prospect, we are all

12 aware of business districts that have negatively

13 been impacted for years once hospitals closed in

14 their communities. You can see this on Main

15 Street in Orange, Stuyvesant Avenue in Union, as

16 well as Springfield Avenue in Irvington. Economic

17 development is not only a business attraction, but

18 business retention. From an economic development

19 viewpoint, keeping the leading employer open and

20 thriving is top priority. A priority strongly

21 supported by the Central Avenue business

22 Improvement District. As president of CABID, I

23 want Prospect Medical Holdings as a partner in

24 that process. Thank you.

25 MS. AINORA: Mayor Taylor.


39

1 MAYOR TAYLOR: Good evening. Lester

2 Taylor, T-A-Y-L-O-R, Mayor of the great City of

3 East Orange. I must have drawn the short straw by

4 having to follow both the Pastor, Reverend Owens

5 and Miss Burbage, both speak so eloquently.

6 But I come here as mayor of this great

7 city of 65,000 residents, where our vision for

8 East Orange was that it stands for urban

9 excellence and it becomes a destination city. As

10 a destination city, we need a hospital. I have to

11 tell you that I was actually a little bit

12 surprised and opposed to this transaction 18

13 months ago, when I got sworn in on January 1st,

14 2014. As mayor, I served as an advisory

15 non-voting board member of East Orange General

16 Hospital. During my campaign, all my opponents

17 accused me of when I got in office, I would sell

18 off all the city assets.

19 So the very first meeting I came to,

20 what was on the agenda but a motion to approve a

21 partnership with Prospect Medical. In my world

22 and experience, partnership meant acquisition. So

23 I questioned that acquisition because my concern,

24 based upon my knowledge of similar transactions

25 across the country is that acquisition just meant


40

1 wind down the facility and/or bleed it of its

2 resources and close it down.

3 Based upon my observation, serving in

4 that capacity in my capacity on the board, working

5 with the administration of East Orange General

6 Hospital, working with the committed board members

7 on that body, working with our profession staff, I

8 know and I stand here today assured that the level

9 of diligence and commitment and thoroughness that

10 has been exhibited from the beginning of this

11 transaction through today's date. And I am

12 standing here today in strong support of this

13 transaction.

14 But also, as mayor of the city where I

15 inherited a budget deficit of 10 million dollars

16 last year, we need to have East Orange General

17 acquired by Prospect Medical so that it will be a

18 tax paying citizen in our city. And my

19 understanding is that Prospect will invest

20 millions and millions of dollars into the physical

21 structure and services to that facility, which

22 will directly benefit the 65,000 residents in our

23 city. As well as maintain the jobs for the

24 thousand employees who are there, 30 or 40 percent

25 of whom live in Essex, 20 percent of whom live in


41

1 the City of East Orange. It is a necessary

2 component of our goal to which is preserve our

3 ability to provide excellent quality services to

4 our community, but also help stabilize our tax

5 base.

6 East Orange General has been a safety

7 net healthcare provider for well over 100 years.

8 So it's very fitting that I follow Ms. Burbage,

9 president of the East Orange Historical Society.

10 Because we need to continue that tradition in our

11 community, an urban community, an African American

12 community, 90 percent African American, where we

13 know the health ill and perils of individuals with

14 diabetes, cholesterol, and other issues, dealing

15 with the socioeconomic access to quality and

16 affordable medical care.

17 So I believe it is imperative and

18 mandatory to preserve the standing and status of

19 East Orange General Hospital in our community so

20 that our residents and the residents in the

21 surrounding communities have access to high

22 quality and affordable healthcare.

23 The partnership proposed by Prospect

24 honors the hospital's past, but also future

25 commitments to the body, making quality healthcare


42

1 services to our community.

2 Some of the positive outcomes, some of

3 which I heard, but namely debt will be eliminated.

4 I read the Navigant report. And, quite frankly,

5 this transaction achieves all of the issues and

6 questions that were stated in that document,

7 namely the elimination of the debt for the

8 hospital. But also again providing much needed

9 tax ratables for my community, which I have the

10 honor and privilege of serving.

11 It's not just going to maintain the

12 hospital, but quite frankly, it's going to make it

13 stronger. It's going to make it better. It's

14 potentially going make it bigger. It's going to

15 help join into the vision I have for the city,

16 which is to set the standard for urban excellence

17 and be a destination city to compliment our

18 economic development initiatives along Central

19 Avenue, along Sussex Avenue, along brick church

20 area of our city, where we can attract new

21 business and/or strengthen some of the existing

22 businesses that Mr. Hill represents and/or Mr.

23 Hashemi, through the CABID and the chamber of

24 commerce.

25 I also know that the investment will


43

1 help provide additional community related programs

2 and support and also funding for the East Orange

3 General Foundation, which will again benefit our

4 general community.

5 Again, I mentioned the size of the

6 employer, that can't be understated. In a city

7 that when I took office last year, we had an

8 unemployment rate that was 45 percent higher than

9 the statewide average, cutting a thousand jobs, 20

10 percent of which are residents of the City of East

11 Orange would have a devastating effect and impact

12 on the community that I represent.

13 I know that Prospect, based upon my

14 direct dealings and meeting with the principals of

15 that company, they are committed to continuing to

16 invest in the hospital and provide enhanced

17 quality level of services that are there.

18 Again, the track record of their success

19 in California, in other states in our country,

20 lead me to the conclusion that this is the best

21 possible partner on the market. I'm committed to

22 working with them to make this transaction a

23 success.

24 I have to also say that we talk about

25 healthcare services, East Orange General kind of


44

1 sets itself apart because of the behavioral health

2 services that are offered. And they need to be

3 continued in this community and be accessible to

4 individuals from varied other communities.

5 And lastly, as I came in, I heard our

6 great speaker, Sheila Oliver, Assemblywoman Sheila

7 Oliver talk about the state of healthcare in our

8 state, in our country, with community hospitals

9 closing. It's important that we not let that

10 happen with East Orange General. The upside is so

11 much brighter, so much more positive than any

12 potential downside with respect to the approval of

13 this transaction. And, unfortunately, if this

14 transaction is rejected, the downside is like a

15 cliff going into an abyss for the patients of

16 hospital, current and prospective, as well as for

17 the residents in our city.

18 I believe that Prospect Medical is the

19 right partner, this is the right time to approve

20 this transaction. Thank you.

21 MS. AINORA: Thank you. Nelson

22 Glendean.

23 MS. NELSON: Hi, good evening. My name

24 is Glendean Nelson, I'm a resident of the City of

25 Orange. G-L-E-N-D-E-A-N, last name N-E-L-S-O-N.


45

1 I'm a little nervous and I'm soon to be a business

2 owner. We need East Orange General. I'm speaking

3 from my heart, I don't have any fancy letter or

4 anything like that. East Orange provides so much

5 to the community, there's healthcare screenings,

6 and the information that's well needed, community

7 outreach that East Orange provides for us.

8 So I speak on behalf of myself and my

9 family, I'm very happy about the merger between

10 Prospect Medical Holdings with East Orange. I

11 feel they'll enhance it and it's a great thing for

12 East Orange General. Thank you.

13 MS. AINORA: Thank you. John, do we

14 have anybody else? So we're going to stay here

15 until at least eight o'clock, in case people

16 getting off of work may come in late. We'll take

17 a recess.

18

19 (Whereupon a short recess was taken.)

20

21 MS. AINORA: I'm going to call the

22 meeting back to order, the State Health Planning

23 Board is back in order.

24 MS. HARRIS: Good evening. My name is

25 Justine Harris, H-A-R-R-I-S, I'm the president of


46

1 board of health for the City of East Orange. I

2 wanted to say that I heartily endorse the

3 acquisition of East Orange General by this

4 organization. And there has been so many

5 wonderful things said about East Orange, it has

6 such an illustrious history. And I'm sure this

7 acquisition will ensure that the future of East

8 Orange is going to be as illustrious as its past.

9 It has served citizens of East Orange

10 and the surrounding cities in a most wonderful

11 fashion. And we hope that these services, these

12 essential services, will continue. And, again, I

13 do endorse this.

14 MS. AINORA: What was -- you're a

15 resident? Or you have --

16 MS. HARRIS: I am a resident of the City

17 of East Orange. I'm the president of the Board of

18 Health of the City of East Orange.

19 MS. AINORA: Any other speakers? Can I

20 get a motion?

21 MR. HAVENS: Motion to adjourn.

22 MS. AINORA: We're adjourned. Thank

23 you, everybody.

24

25 (Whereupon the hearing was concluded.)


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1 C E R T I F I C A T E

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6 I HEREBY CERTIFY that the foregoing is a

7 true and accurate transcript of the testimony and

8 proceedings as taken stenographically by me at the

9 time, place, and on the date hereinbefore set

10 forth.

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14 C:\TINYTRAN\Susan Bischoff.bmp

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18 SUSAN BISCHOFF, CCR, RPR

LICENSE NO. 30XI00233700

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20 Dated: July 1, 2015

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Documents

1 NEW JERSEY STATE HEALTH PLANNING BOARD 2 LANGSTON … · 2 1 SPEAKER: PAGE: 2 Martin Bieber 6 3 George Johnson 7 4 Jacqueline Burgess 9