CarePoint Health Systems, Inc. d/b/a Just Health Foundation is a nonprofit hospital system operating three acute-care hospitals in Hudson County, New Jersey (Hoboken University Medical Center, Christ Hospital, and Bayonne Medical Center) with a combined 975 licensed beds serving a vulnerable population characterized by high rates of uninsured and undocumented patients (~60% uninsured at HUMC and Christ Hospital). The system filed for Chapter 11 protection on November 3, 2024 in Delaware (Case No. 24-12534, Judge J. Kate Stickles) after accumulating significant financial distress driven by post-COVID operating cost inflation, inadequate state and federal reimbursement relative to charity care obligations, and unpaid trade debt. At filing, CarePoint carried approximately $110 million in obligations to Hudson Regional Hospital (HRH) and $20 million to Capitala across multiple secured facilities, in addition to an estimated $162 million in general unsecured claims. The debtors obtained $25 million in DIP financing from Bayonne Medical Center Opco, LLC at 11% base rate plus 2% facility and exit fees. The plan was confirmed on April 17, 2025 and became effective May 22, 2025, establishing a Litigation Trust to monetize litigation claims for creditor distributions. HRH and Capitala are projected to recover 100% through postpetition exit facilities, while general unsecured creditors face a capped 1%-2% recovery.
