State legislation approves Municipal Hospital Authority

July 8, 2006

TRENTON, N.J. (AP) — Troubled St. Mary Hospital can be purchased by a Hoboken municipal authority under legislation approved Saturday morning by the Assembly.

The Senate in June approved the bill to save the state's oldest hospital. The Assembly voted 43-32 to approve it.

St. Mary Hospital is owned by Bon Secours Health Systems. The hospital has 328 beds and 967 employees, but Bon Secours recently filed with the state close the hospital, citing $118 million in debt since the company took over the hospital in 2000.

The plan calls for Hoboken to create a municipal authority that would run the hospital and be eligible for state financial aid.

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