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The basics:
The March 14 closure of Heights University Hospital’s emergency department marks a turning point in a long-simmering dispute, bringing to a head months of mounting financial strain, political opposition and regulatory tension – and leaving the future of health care access in Jersey City’s Heights neighborhood uncertain.
While the shutdown itself unfolded in a matter of days, the forces behind it had been building for months – accelerating in recent weeks as financial pressures, public pushback and legal challenges converged.
Concerns first emerged in the fall, when Hudson Regional Health warned it could be forced to scale back services at the hospital (formerly known as Christ Hospital) without significant government support, citing financial losses, infrastructure challenges and an increasingly difficult payer mix. Hudson Regional Health, which acquired Heights University Hospital out of the CarePoint Health bankruptcy, also oversees Hoboken University Hospital, Bayonne University Hospital and Secaucus University Hospital.
That pressure came to a head in November, when the system announced it would shut down the Jersey City hospital as an acute care facility, eliminating inpatient and specialty services while maintaining only a standalone emergency department.
“It’s really with a heavy heart that we got to this point,” Hudson Regional CEO Dr. Nizar Kifaieh said in a Nov. 14, 2025, statement.
Financial troubles
At the same time, state regulators raised serious concerns about the system’s financial management and adherence to commitments made during the bankruptcy restructuring process.
“Despite all of these efforts, Hudson Regional Hospital has failed to fund their payroll this week and failed to fully perform as it represented in its Plan of Restructuring, which was approved by the Bankruptcy Court as a condition of exiting bankruptcy,” a New Jersey Department of Health spokesperson said in a Nov. 14 statement.
From left: Hudson Regional Health Chairman Yan Moshe and CEO Dr. Nizar Kifaieh. – PROVIDED BY HUDSON REGIONAL HEALTH
Through the winter, the hospital continued operating in that reduced form – with the emergency department serving as the final remaining piece of a once full-service institution – even as the underlying financial and regulatory issues remained unresolved.
By late February, the situation reached a new level of urgency.
“Since taking over Heights University Hospital, HRH and its Chairman Yan Moshe have invested over $100 million in an aggressive effort to stabilize operations, including rebuilding service lines, enacting labor agreements, recruiting physicians and strengthening clinical programs,” Hudson Regional Health told NJBIZ in a Feb. 26 statement, as it announced plans to shutter the facility’s ER.
“Despite these historic investments, the hospital sustained a $74 million loss last year, with the Emergency Department projected to lose $30 million this year alone.”
‘Unacceptable’
Local officials, however, grew more vocal in their opposition.
Solomon
“Earlier today, Hudson Regional Hospital informed the administration that it intended to close the Emergency Department at Christ Hospital,” said Jersey City Mayor James Solomon in a Feb. 26 statement. “This is unacceptable, especially since just a year ago, their CEO said that the future is bright for patients in the Heights. I will use all my power to reverse this decision.”
A day later, a temporary reprieve emerged.
Hudson Regional Health announced it would extend emergency department operations through March 14, pushing back a previously planned Feb. 28 closure, following requests from Jersey City officials and discussions with the New Jersey Department of Health.
As part of that extension, Moshe agreed to cover roughly $1 million in operating costs during the two-week period. The system reiterated, however, that without additional funding, it still expected to suspend emergency services March 14.
“While this is progress, it is still not acceptable for the residents of the Heights. HRH committed to providing long-term, high-quality health care in the Heights, and an additional two weeks fails to fulfill that promise,” said Solomon, Councilmember Tom Zuppa and Councilmember Ephros in a Feb. 27 statement. “Together – as the Mayor and members of the City Council – we will continue to work closely with Governor Sherrill, the NJ Department of Health, and Jersey City’s Health and Human Services to find a responsible path toward a solution that guarantees access to emergency care for residents in the Heights, whether that care is provided by HRH or another provider.”
‘Out of compliance’
State officials made clear the extension did not resolve deeper concerns.
Washington
“Despite receiving millions in state financial assistance and other supportive interventions, HRH has failed to continue operating Heights University Hospital in compliance with state law, shuttering all but the emergency department without obtaining legally required approval,” acting Health Commissioner Raynard Washington said in a Feb. 27 statement.
“While the anticipated closure date has been extended, this action does not change the fact that HRH remains out of compliance with regulatory and statutory requirements. The state will continue to exercise all available options to enforce regulatory authority while safeguarding public resources and trust.”
Officials attempted to identify a path forward before the March 14 deadline.
But even as that process played out, HRH began preparing for the likelihood that no agreement would come.
Maintaining access to care
On March 12, the system said it was preparing to suspend emergency department services at 7:30 p.m. March 14, while outlining steps to maintain limited health care access in The Heights.
Those preparations included a partnership with Alliance Community Healthcare, a federally qualified health center, to expand primary and preventive care services at the Heights Medical Office Building on Palisade Avenue. HRH also said it would deploy a mobile health unit in the community and temporarily station an ambulance outside the facility to transport patients requiring emergency care to other hospitals.
Despite the extension – and continued discussions – no agreement materialized.
As the deadline approached, the facility remained limited to emergency-only care – the final remnant of what had once been a full-service hospital – with uncertainty giving way to inevitability.
“With the State of New Jersey and the City of Jersey City stating yesterday they are not willing to provide funding, Hudson Regional Health will proceed with the closure of the emergency department at Heights University Hospital,” HRH said in a March 14 statement.
Heights University Hospital’s emergency department closed March 14, leaving the future of health care access in Jersey City’s Heights neighborhood uncertain. – DEPOSIT PHOTOS
Another setback
The announcement prompted an immediate legal challenge from Jersey City officials, who sought to block the closure in court.
“HRH’s abrupt closure of Christ Hospital contradicts not only their own promises to the Heights community, but also their legal obligations under State law,” Solomon said in a March 14 statement. “HRH has methodically degraded the services of the hospital, finally leaving only its emergency department open. Their failure isn’t one of financial poverty, but intentional, strategic harm that threatens the lives of Jersey City Heights residents.”
The court denied the city’s request for an injunction later that day, allowing the closure to proceed.
Christ Hospital has closed. We fought, and we will keep fighting.
I directed our Corporation Counsel to file a motion to keep the doors open. The judge ruled against us. But I am committed to using every tool available to get healthcare back to the Heights — including eminent… pic.twitter.com/Jf2O8wJyBA
— James Solomon (@SolomonforJC) March 14, 2026
“The court today denied our request for an injunction. We disagree with the ruling, but we respect it. What we will not respect is Hudson Regional Health’s conduct throughout this entire process,” Solomon said March 14. “HRH violated state law. They failed to obtain a certificate of need. They failed to provide the required notice. And tonight, they will close a hospital serving 300,000 people as if those obligations never existed.
“Jersey City fought for our residents in court today, and we are not done. We are immediately exploring every legal avenue available to us – including the use of eminent domain to take control of this facility and restore the services HRH has abandoned. No option is off the table when the lives of our residents are at stake.”
By that evening, the emergency department – the last remaining service at Heights University Hospital – had shut its doors.
Down to one
The impact is immediate.
With the loss of the facility, Jersey City is left with a single acute care hospital and roughly 350 beds – a level many officials argue is insufficient for a city of its size. Health care advocates warn of longer wait times; increased strain on neighboring hospitals; and reduced access to emergency care, particularly for vulnerable populations.
Brennan
“This was an illegal closure. We have state laws that should prevent what just happened at Christ Hospital,” Assemblywoman Katie Brennan, D-32nd District, said in a March 15 statement. “The owners of Heights University Hospital closed this facility without following the procedures required under state law and without any plan to make sure Jersey City residents can access the care they need. They acted in bad faith and they should be held accountable.
“This fight is far from over.”
Brennan joined nurses, local officials and community members for a sit-in protest outside the hospital March 14.
“We’re not going to stop fighting until this is fixed,” said Brennan.
‘Health care desert’
“A year ago, Hudson Regional Health made promises to Jersey City, its surrounding communities and the bankruptcy court when they acquired Christ Hospital. But only four months later they illegally closed Christ Hospital to all inpatient admissions and left only an Emergency Room in place. They claim they could not afford to keep it open, but that is not what they told the court,” Health Professionals & Allied Employees (HPAE) President Debbie White told NJBIZ in a March 18 statement. “On Saturday, they shut down the hospital entirely, turning Jersey City into a health care desert.
“Every step HRH took in eliminating desperately needed hospital beds in Hudson County was illegal and they are currently in violation of the law. This illegal closure must not stand. We are urging the state to take action to preserve health care services in Jersey City. Hudson County desperately needs these hospital beds. There are steps that state government can still take to restore healthcare to the community.”
In the leadup to the closure, the Sherrill administration said the following:
“Hudson Regional Health has routinely circumvented statutory and regulatory requirements throughout the process of closing Heights University Hospital, accruing tens of thousands of dollars in penalties owed to the State – which we intend to collect. As Heights University Hospital illegally closes its Emergency Department, we are working to inform the community of this abrupt closure and mitigate any negative impacts,” a Sherrill spokesperson told NJBIZ March 12.
“New Jersey Department of Health staff are actively engaged to ensure patient safety and access to care, and ambulances will be on site to redirect any patients as needed. The Sherrill administration is committed to ensuring this does not happen again, and the Governor will be pursuing legislation to give the State more tools to hold health care facilities accountable to the patients and communities they serve.”
The Sherrill administration has not announced any further action. Or released any other public statements about the situation.
Hudson Regional’s response
For its part, HRH contends the closure stems from systemic financial and operational realities — not from a lack of commitment or investment.
“The existing facility, built more than 150 years ago, is several decades past its useful life. Years of neglect by prior owners have left the hospital with hundreds of millions of dollars in critical infrastructure deficiencies – investments that would only bring the building up to minimal operational standards,” Vijay Chaudhuri, HRH spokesperson, told NJBIZ.
“Despite more than $300 million invested by HRH across the system, including a large portion at Heights University Hospital to stabilize and improve hospital operations, the condition of the facility, financial losses, and current payer mix make it clear that the best path forward is the construction of a new hospital designed to meet the highest standards of modern health care.
Despite more than $300 million invested by HRH across the system … the condition of the facility, financial losses, and current payer mix make it clear that the best path forward is the construction of a new hospital designed to meet the highest standards of modern health care.
– Vijay Chaudhuri, Hudson Regional Health spokesperson
“A new, state-of-the-art facility, financed through the redevelopment process, will enable the recruitment of top physicians, the expansion of specialty services, and the ability to attract a higher payer mix and patients who currently leave Jersey City to seek care elsewhere. These capabilities are critical to generating the revenue necessary to sustain the hospital while continuing to serve a large, underinsured population.”
Elected officials, regulators, and HRH are navigating competing financial, operational and legal considerations, while the community seeks reliable access to care. For now, how services will be structured in the Heights remains unsettled.
“The residents of Jersey City’s Heights neighborhood will feel the consequences of HRH’s decisions tonight,” said Solomon March 14 after the closure took effect. “Longer ambulance rides. Fewer beds. A community left without the care it was promised. The people in the Heights deserve better, and my administration is committed to restoring comprehensive, high-quality healthcare to the neighborhood.”