City of Plainfield v. New Jersey Department of Health and Senior Services, A-0107-08T3; Appellate Division; opinion by Carchman, P.J.A.D.; decided and approved for publication April 12, 2010. Before Judges Carchman, Parrillo and Lihotz. On appeal from the New Jersey Department of Health and Senior Services, FR 080303-20-01. DDS No. 22-2-7487 [39 pp.]
Founded in 1877, Muhlenberg Hospital was established to serve the city of Plainfield and its surrounding areas. In recent years, Muhlenberg’s medical, administrative and maintenance costs spiraled, its physical plant aged, and Plainfield’s economic base deteriorated; Muhlenberg’s prime source of revenue was no longer private-pay patients but those on government assistance. Instead of a thriving, fiscally sound institution, Muhlenberg reflected declining admissions and mounting losses. In 1997, Muhlenberg merged with the JFK Health System to form Solaris Health System Inc. Despite attempts to rehabilitate the hospital, Solaris determined that it would close Muhlenberg.
