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The hearing was the first step in the state's handling of Cathedral's application. Testimony and other information would be given to the department's planning board. The board will take the information and make recommendations to state Commission Clifton Lacy, who will make the final decision.
The previous evening, Cathedral and hospital officials discussed reasons for their decision to close with Orange City Council members. Cathedral filed an application Oct. 1 with the N.J. Department of Health and Senior Services to close the hospital. Officials cited a likely $14 million decline in Medicare and $3 million in state charity-care payments among the reasons for their decision.
Cathedral and hospital officials, during the state hearing, said the cuts directly attributed to what they said was the financial collapse of the hospital. They said the hospital would not have enough money to function after the end of January.
One official said the hospital also has faced a decline in residents undergoing in-patient treatment. The official said five area hospitals received more Orange residents as in-patients than HCO. He added the close should have minimal impact as approximately 10 hospitals are located within a six-mile radius of HCO.
Dr. Yash Khanna, president of the hospital's medical staff, disagreed with Cathedral's decision. He said the doctors had created a plan to continue the hospital's operations but were turned down by Cathedral's board of trustees.
"All the medical staff were committed, but our plan was rejected," Khanna said. "Orange is a very underserved medical area, with blue-collar workers who are served by the hospital. If the board believes East Orange General Hospital can provide the same level of care, I think that's a mistake."
As he did the previous evening, the Rev. Reginald Jackson, pastor of St. Matthew AME Church in Orange, questioned a nearly threefold increase in administrative fees charged by Cathedral between 2002 and 2003. Jackson, who sits on the hospital's board of trustees, said fees increased from $4.2 million in 2002 to $10.7 million in 2003.
"We demand to know why these administrative fees increased so much in 2003," said Jackson. He added that equipment purchased by the hospital has been given to other hospitals within the Cathedral system.
Opposing a Jan. 5 editorial in The Star-Ledger which appeared to agree with Cathedral's decision, the Rev. Leonard Smalls, pastor of Imani Baptist Church in East Orange, said the focus has moved from what the hospital's mission should be.
"People of affluence, the big shots, the newspapers, have their opinion about what is a successful hospital," said Smalls. "It is not about saving lives, abating disease or delivering babies. It's about how much money they can make out of our misery."
A hospital volunteer, 87-year-old Maudie Nelson of Orange, suggested a change in administrative personnel.
"Seeing the need for the hospital, we need to examine matters and do the right thing," Nelson said. "Whoever is in charge of the last word needs to be removed if they can't take care of business."
Several other speakers used the hearing to send a message to state and local Democratic officials. With the gubernatorial election set for 2005, the speakers said an approval to close the hospital could adversely effect Democratic election plans.
