Who’s Involved
The organizations involved in the proposed deal to open a for-profit 128-bed inpatient hospital and a medical school in Pascack Valley are Legacy Hospital Partners, Inc. and Hackensack University Medical Center.
Legacy Hospital Partners, Inc.
Legacy Hospital Partners, Inc. (LHP) is a newly created investment company that purchases stakes in and operates for-profit hospitals in order to deliver a return to its investors. Based in Plano, Texas, and bankrolled principally by a private-equity fund, CCMP Capital Advisors, and a Canadian pension fund eager to improve financial returns, LHP is run by former executives of for-profit hospital operators Triad Hospitals and Columbia HCA. (Columbia HCA was the target of a widely publicized federal investigation into Medicare and Medicaid fraud in recent years.) The investment arrangement with Hackensack University Medical Center is just one of 20 hospital acquisitions LHP plans to make in the next five years with the stated goal of achieving a $3.5 billion profit.
Hackensack University Medical Center
Hackensack University Medical Center (HUMC) is a 775-bed teaching and research hospital affiliated with the University of Medicine and Dentistry of New Jersey (UMDNJ). Established in 1888, HUMC offers a full spectrum of healthcare services for northern New Jersey communities. HUMC is New Jersey’s largest provider of inpatient and outpatient services and is the fourth largest hospital in the nation based on admissions.
