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FOR IMMEDIATE RELEASE

Date: 12/22/09
Contact: Daniel Bryan
201-726-9222

Mayor Zimmer Announces Trenton’s Emergency Funding for Hoboken UMC

Mayor Dawn Zimmer announced today that the City was informed by the New
Jersey Department of Health and Human Services of an allocation of $7 million for
the Hoboken University Medical Center from the State’s Health Care Stabilization
Fund.

"This funding is very welcome news since it recognizes Hoboken UMC as an


essential safety-net hospital and will allow much needed additional time to improve
the hospital’s financial performance and pursue its recovery plan,” Mayor Zimmer
commented. The Mayor added that more work needs to be done to ensure that the
hospital will be financially self sufficient and she is confident the new CEO and his
management team are taking all necessary steps to improve revenues and lower
costs.

Mayor Zimmer and the hospital’s CEO, Spiros Hatiras, together thanked
Governor Jon Corzine and Health Commissioner Heather Howard, as well as
members of the Governor-elect Chris Christie Transition Team which supported the
awards. She also expressed gratitude to Senator Robert Menendez, State Senator
Brian Stack, Assemblyman Ruben Ramos, former State Senator Bernard Kenny and
members of the Hoboken City Council for their advocacy and support of the
hospital.

Mr. Hatiras previously announced a budget reduction plan with a goal of


reaching a break-even financial result for 2010. The Stabilization Grant funding is a
part of the recovery plan and does not lessen the need for the hospital to reduce its
operating expenses.

He explained, “success of the plan will require shared sacrifice by everyone


at the hospital; the senior management team has set an example and already taken
a 10% salary decrease." Mayor Zimmer noted that Mr. Hatiras voluntarily led by
taking a 15% reduction.

The financially struggling St. Mary Hospital was made a City entity in 2006.
The City guaranteed $52,000,000 in bonds for capital projects starting with the new
Emergency Room. Approximately $9 million has been used to fund operating
expenses. The hospital lost $22.8 million in 2008 on a budget of $136,000,000.

Hoboken Municipal Hospital Authority Chairman Kevin Kramer expressed


appreciation for Mayor Zimmer's advocacy on behalf of the hospital: "The Mayor's
persistent hands-on lobbying for support was instrumental in getting
this funding across the finish line."