Since 1863, the hospital located at 308 Willow Street ("hospital")
has been providing affordable and convenient healthcare services to
the residents of the City of Hoboken, in the County of Hudson (the
"City") and surrounding communities.
It is hereby declared that any intended closing or change in
ownership of the hospital may create a serious public emergency affecting
the health, safety and welfare of the people of the City and the region,
unless the City takes certain actions.
In 2006, the Legislature of the State of New Jersey enacted
the Local Hospital Authority Law, N.J.S.A. 30:9-23.15 et seq., which
authorizes cities to create instrumentalities to acquire certain existing
urban hospitals and to operate them, including through a manager.
It is the purpose of this chapter to form an authority to exercise
all powers granted to such an authority under the Local Hospital Authority
Law, including but not limited to the acquisition and operation, including
through a manager, of the hospital, in order to ensure that the citizens
of the City and the region continue to have access to affordable healthcare
and to maintain and improve the health and welfare of its citizens.
The formation of such an authority, the acquisition by such
authority of the hospital and the operation thereof by such authority,
including through a manager, is hereby declared to be a public use
and purposes.
Pursuant to Section 4 of the Local Hospital Authority Law, there is hereby created a body corporate and politic and
an agency and instrumentality of the City known as the Hoboken Municipal
Hospital Authority (the "HMHA").
The HMHA shall consist of 11 members, consisting of one Class
I member, two Class II hospital members, six Class III public members
and two Class IV members. The Class I member shall be the Mayor of
the City or their designee, ex-officio. The Class II hospital members
shall serve on, and be appointed by, the medical staff executive committee
of the hospital, to terms concurrent with their membership on the
executive committee, and who need not be residents of the City. The
Class III public members shall be appointed by the Mayor of the City,
with the advice and consent of the City Council. None of the Class
III public members shall be officers or employees of the City, the
HMHA or of the management entity which is required to manage the hospital.
At least four of the Class III public members shall be residents of
the City. At least two of the Class III public members shall have
special expertise as follows: one shall have extensive expertise in
finance of private or nonprofit organizations, and one shall have
extensive expertise in nonprofit organizational management. The Class
III public members shall serve for terms of five years and until their
respective successors have been appointed and qualified; except that
of the six members first appointed by the Mayor, (i) one Class III
public member shall serve for an initial term ending on June 30, 2021;
(ii) one Class III public member shall serve for an initial term ending
on June 30, 2022; (iii) one Class III public member shall serve for
an initial term ending on June 30, 2023; (iv) one Class III public
member shall serve for an initial term ending on June 30, 2024; and
(v) two Class III public members shall serve for an initial term ending
on June 30, 2025. All subsequent terms of Class III public members
shall be for five years and shall be staggered in accordance with
the above-referenced schedule. The terms of all Class III public members
shall begin on July 1 and end on June 30, except that (A) the terms
of office of the initial Class III public members shall begin on the
date(s) such members are appointed and qualified, and (B) the term
of office of any Class III public member shall terminate if such member
no longer meets the above qualifications. The hospital's chief
executive officer or a designee thereof shall serve as a nonvoting
Class IV member. The Commissioner of Community Affairs of the State
of New Jersey shall appoint one individual as a nonvoting Class IV
member. Any vacancy occurring in the office of member, from any cause,
shall be filled in the same manner as the original appointment, but
for the unexpired term.
A certificate of the appointment or reappointment of each Class
III public member shall be filed with the Municipal Clerk, and that
certificate shall be conclusive evidence of the due and proper appointment
of that member. A member shall receive no compensation for services,
but shall be entitled to reimbursement from the HMHA for actual expenses
necessarily incurred in the discharge of the duties of member. The
powers of the HMHA shall be vested in the members thereof in office
from time to time. Five voting members shall constitute a quorum for
the purpose of conducting business and exercising powers and all other
purposes. Action may be taken by the HMHA upon the affirmative vote
of the majority, but not less than five of the voting members present,
unless in any case the bylaws of the HMHA shall require a larger number.
The HMHA shall select a chairman and a vice-chairman from among the
Class III public members, and it may employ an executive director
who may be its secretary.
For inefficiency or neglect of duty or misconduct in office,
a member may be removed by the governing body or officer by whom they
were appointed; but a member may be removed only after the member
has been given a copy of the charges at least 10 days prior to the
hearing thereon and has had the opportunity to be heard in person
or by counsel. In the event of a removal of a member, a record of
the proceedings, together with the charges and findings thereon, shall
be filed in the office of the Municipal Clerk.