State Health Department Orders Disaster Plan for CareWell Health Medical Center Amid Financial Concerns

The financial stability of CareWell Health Medical Center in East Orange, New Jersey is in serious jeopardy, prompting the state Health Department to take action. The department has ordered the owners of the hospital to submit a “disaster plan” outlining where patients and staff could be transferred in the event of a sudden closure.

CareWell has been under scrutiny since February for staffing issues and failing to provide transportation for patients needing radiology and CT scans. The health department installed a financial monitor in response to these concerns, but the situation has only worsened.

In a statement, CareWell Health accused the Health Department of spreading inaccuracies about the hospital’s financial status, insisting that they provide high-quality care. However, the department is standing by its decision to require a disaster plan from the hospital.

Every hospital in New Jersey is required to have a disaster plan in place for various scenarios, including financial distress. Health officials are currently assessing CareWell’s economic situation with the help of outside monitors.

The hospital, formerly known as East Orange General Hospital, was purchased by EOH Acquisition Group, LLC in January 2022. Despite the challenges, CareWell remains committed to serving the community and providing quality care.

CareWell Health is not the only hospital facing financial difficulties in New Jersey, as the state has also provided funding to support other struggling facilities. The situation at CareWell highlights the challenges facing independent hospitals in underserved communities.

As the situation continues to unfold, the future of CareWell Health Medical Center remains uncertain. Stay tuned for updates on this developing story.