WHAT’S NEW: A federal bankruptcy judge Thursday approved annual compensation of $400,000 for the new president and chief executive officer of St. Mary’s Hospital in Passaic, Michael J. Sniffen, who took office Monday. Sniffen, who has executive experience at many New Jersey hospitals, succeeded Colene Daniel, who resigned after 14 months. St. Mary’s filed for bankruptcy on March 9, and is seeking to reorganize or find a buyer. It is the only full-service hospital in the city of Passaic.
Besides his base salary, Sniffen will receive a $50,000 bonus when St. Mary’s is sold or a reorganization plan is approved. If he does not take a position with the new owner or the reorganized hospital, his bonus will be $100,000.
BACKGROUND: Since filing for bankruptcy, the hospital has hired both a new chief executive officer and a new bankruptcy counsel. The previous law firm was disqualified because it also provided legal representation to St. Joseph’s Regional Medical Center in Paterson, which is a potential partner for St. Mary’s.
Unionized employees at St. Mary’s accepted temporary modifications to their collective bargaining agreement, while non-union staff agreed to a reduction in pay to trim expenses. The hospital has pressed its efforts to sell the buildings on Pennington Avenue that were vacated when it moved to the Boulevard campus.
WHAT’S NEXT: The new bankruptcy attorney, Robert K. Malone, of the firm Drinker Biddle & Reath, has asked for a three-month extension — until Oct. 7 — to come up with a reorganization plan or sale. The hospital is also asking for permanent changes in the collective bargaining contract with unionized employees. The current deadline for reorganization is July 9, and Malone said in a court filing that the complexity of the case, as well as progress made to date, warrant an extension. A hearing is scheduled Tuesday.
— Lindy Washburn
Looking to ease demands on a training fund for emergency medical technicians from which $4 million is being taken to balance the state budget, state lawmakers are moving to extend EMT certifications from three years to five.
CAIRO -Iran’s supreme leader says the government won’t give in to pressures over the disputed presidential election, effectively closing the door to compromise with the opposition. Iran also said it was considering downgrading ties with Britain, which it has accused of spying and fomenting days of unprecedented street protests over the vote. Supreme Leader Ayatollah Ali Khamenei said in a meeting with lawmakers that: “Neither the system nor the people will give in to pressures at any price.” Opposition leader Mir Hossein Mousavi claims that hard-line President Mahmoud Ahmadinejad stole the June 12 presidential election through massive fraud. He has called for annulling the results and holding a new vote.