October 30, 2010 RE: Muhlenberg Regional Medical Center Property Plainfield, New Jersey A recent newspaper article

(enclosed) detailed vague discussions concerning the development of the Muhlenberg Regional Medical Center property located in Plainfield, NJ. Since the State of New Jersey holds the $152,925,000 State Contract Bonds (Hospital Asset Transformation Program) on the total Muhlenberg property issued by the New Jersey Health Care Facilities Financing Authority with the Bank of New York Mellon, as Master Trustee, the State of New Jersey should be an interested party and participate in the ongoing discussions in order to fully protect the public interest. Muhlenberg Regional Medical Center was closed in 2008, by the former Commissioner of Health and Senior Services Heather Howard. (July 29, 2008, closure letter) The New Jersey State Legislature passed a bill to allow for the bonding to go through even though the court challenge was not adjudicated. In October, 2008, the New Jersey Health Care Facilities Financing Authority approved the $152,925,000 State Contract Bonds in the Hospital Asset Transformation Program. According to papers filed in the County of Union Clerk's office, the $152.9 million bond note is secured by the Muhlenberg property only and does not impact The Community Hospital Group, Inc. [Please note that at one of the hospital annual meetings, it was stated that there is also a $17 million mortgage on the Muhlenberg property, but research can not substantiate that as a fact.] The Plainfield area residents lost healthcare for a supposedly $18 million loss, but the Muhlenberg assets have been leveraged to provide $152.9 million to another entity. Regardless, the State of New Jersey needs to be aware of this development in order to protect the State's interest.
[updated 07/04/2011] A search as of yet has not been done of the papers filed in the County of Middlesex; however, according to the NJHCFFA (NJ Health Care Facilities Financing Authority) October 23, 2008 Meeting Minutes, page 6, "The proceeds of the financing will be used to : refund the the Authority's Variable Rate Composite Program - JFK Medical Center Project Series 2005 A-3; refund the Authority's Variable Rate Composite Program - Community Hospital Group Series 2003 A-1; refund the Authority's Muhlenberg Regional Medical Center Issue, Series 2000; refund the Authority's JFK Medical Center/Hartwyck at Oak Tree Obligated Group Issue, Series 1998; refund the Authority's JFK Health Systems Obligated Group Issue, Series 1995: refund the Authoriity's JFK Health Systems Obligated Group Issue, Series 1993; fund capital improvements at the JFK Medical Center related to the closure of Muhlenberg; fund capital interest; and pay related costs of issuance." The $152.9 million was leveraged to refund 5 JFK related bonds and only 1 of Muhlenberg bonds.