Jersey City Medical Center Documents

Urban Times News

Special to the Urban Times News

The following story is a journalistic rarity. It is a story written directly by a source of the news. Our reporter was talking to one of several sources and the reporter said, "Hey you may as well just write the story, and just give me the supporting documents." So the source did. It is a big story in terms of impact on the overall situation of the Jersey City Medical Center. Founded to provide health care to Jersey City residents, "without regard to the ability to pay," under years of County rule by the Hudson County Democratic Organization, the hospital has become one more political pork barrel being systematically looted by Organized Crime to the detriment of the residents who may at some times literally place their lives in the hands of this institution. In fact some have died because of the criminal mismanagement of the hospital that diverts money to pay "consultants" like Zulima Farber, but does not have enough money left over to keep an adequate stock of medical supplies on hand. The following story was, in fact, written by the source who is a highly placed and utterly disgusted member of the staff. That makes this a sort of journalistic rarity, for those who care about such things.

Special to the Urban Times News

Jersey City--”In 1996, JCMC organized the physicians in at least 10 of the Clinical Departments into separate Faculty Practices as not for profit corporations. JCMC was the sole shareholder in each corporation, thus controlling each corporation.

The Form 990 Income Tax returns of such tax-free corporations are in the public domain. Indeed, for 7 of the Faculty Practices at JCMC, these returns are available at www.guidestar.org - the National Database of Nonprofit Organizations. The last available year is 2001, and several of the 7 Departments have a year with missing returns. (The returns of the other Faculty Practices are not available at Guidestar.)

Potential problems can arise with professional corporations because the Board of Medical Examiners insists that a licensed Medical Professional be the Director of the Practice, to insure responsibility for proper care as well as propriety in billing. Since JCMC was the sole shareholder in these Faculty Practices, the question arises of whom is the responsible physician owning the practice. From 1996 through 1999, there are 16 tax returns available at Guidestar.org for the 7 Faculty Practices listed there. This captivating before and after snapshot can be seen from documents posted Online.

Each practice has the same perennial Operating Board, with its President being Jonathan M. Metsch, Dr. P. H. (who is also the CEO of JCMC.) The Dr. P.H. designation represents a Doctorate in Public Health --“ an administrative, not a Medical Degree. The other Board members of the Practices are likewise not physicians either. Thus, the control of each of these corporations is certainly fixed in the CEO, who is not a physician. The actual Medical Doctors involved in the Faculty Practices are listed on the tax returns as Employees who are not Officers, Directors, and Trustees. This structure was the source of much concern to the physicians involved, since in theory (law) or in actual practice, there was no physician in control.

At the end of the year 2000, the Chief Operating Officer of JCMC (who was also the SVP for Medical Affairs) reported to the Medical Leadership at JCMC, as well as to the Board of Trustees, that the hospital attorneys had advised that the corporate structure for the Faculty Practices that had been in place from 1996 to 1999 was not legal, because it was considered the "corporate, not physician practice of medicine." That Board of Trustees includes Zulima Farber, recently nominated to the State's Supreme Court by Rep. Robert Menendez, D-13. Senator Bernard Kenny, D-32, and Jersey City Council Member Mariano Vega are also members of that Board. Medical Leadership breathed somewhat easier with the expectation that this problem would be addressed. However, there was no visible change in the daily conduct of these businesses. There was an expectation that at least a major change would occur in the corporate structure to correct a arrangement deemed illegal by the hospital attorneys. That report can be seen in its entirety Online.

There was only one noticeable change that the physicians at JCMC can discern to address the stated illegality of the Faculty Practice structures. Depending on one's perspective, it was either a small or large change. Since a physician had to own and control each Faculty Practice for the structure to be legal, a direct, "bull-by-the-horns" approach was taken.

The CEO of each Faculty Practice listed on the tax returns for the years 2000 and 2001 is Jonathan M. Metsch, M.D. Since Jonathan Metsch was not known to have taken any time to attend Medical School, the simplicity (if not the propriety) of the "correction" is stunning. It is what academics and mathematicians like to call an "elegant" solution.

Jonathan Metsch is a Physician at tax time. Has the JCMC Board of Trustees approved this action? Has the hospital attorney? The gross income of the returns available for these corporations is over $80 million. And many of the returns are not available. The solution seems simple. Jonathan Metsch can become a lawyer at auditing time. How long did the Wizard of Oz keep the curtain up anyway?

Follow Ups:

• Re: GETTING AWAY WITH MURDER- JERSEY CITY MEDICAL CENTER James Nesfield 21:00:10 07/25/03 (2)
  • Re: GETTING AWAY WITH MURDER- JERSEY CITY MEDICAL CENTER Curious 21:28:58 07/25/03 (1)
    • Re: GETTING AWAY WITH MURDER- JERSEY CITY MEDICAL CENTER James Nesfield 22:12:48 07/25/03 (0)