By Patricia Alex, Staff Writer. The Record.
University Hospital was left standing alone after the game of legislative musical chairs that played out as part of the reorganization of New Jersey’s public medical education system. Now consultants are devising a plan to keep the state’s largest charity care provider in business.
University Hospital in Newark will cease to exist when the merger takes effect on July 1.
The University of Medicine and Dentistry of New Jersey — for now the parent of University Hospital in Newark — has agreed to pay Deloitte Financial Advisory Services up to $1.2 million to figure out the details over the next four months, Jeff Tolvin, a spokesman for UMDNJ, said Tuesday.
“They will assess the finances and develop a roadmap for University Hospital for the future,” Tolvin said.
The medical university will cease to exist when the merger becomes effective on July 1. Most of its parts — including two medical schools, a dental school and a cancer institute — are being absorbed by Rutgers University in Newark and New Brunswick/Piscataway.
The move will elevate Rutgers into the top tier of biomedical research universities and rescue most of the former UMDNJ from years of financial instability. Rutgers is taking on more than $456 million in debt from the medical university – a move that prompted Moody’s, the credit rating agency, to warn of a downgrade of Rutgers’ bond rating.
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