Bayonne Medical physicians asks for support of physician-driven financial restructuring plan

By Reshmi Basu

New York, Sept. 6 - Bayonne Medical Center's physician group threw its support behind a proposal to sell a part of the hospital to a to-be-formed BMC hospital group, according to a Thursday filing with the U.S. Bankruptcy Court for the District of New Jersey.

According to the hand-delivered letter to judge Morris Stern, the physician group said it was approached by a representative of GP Medical Ventures and The IQ Business Group (GP/IQ) about a financial restructuring option for the hospital.

Under the plan, physicians would own 49% of the medical center and the existing debtor-in-possession loan would be repaid.

The group asked that GP/IQ be allowed to present a feasibility study to assess the economic benefits of the proposal, given the lack of a comprehensive solution for the viability of the medical center.

In addition, the group asked for the immediate release of funds for the report, which would cost $60,000 plus expenses.

Furthermore, the physicians contended that a physician-driven plan is the only "real and viable" option to save the hospital.

The Bayonne, N.J., medical center filed for bankruptcy on April 16. Its Chapter 11 case number is 07-15195.

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