Union County Transferring Ownership of Cornerstone Psych Hospital

UNION COUNTY, NJ — The county is transferring ownership of a psychiatric facility in Berkeley Heights to the private company that owns the larger hospital it is contained within.

Staff members at Cornerstone Behavioral Health Hospital spoke at the Wednesday, Sept. 4 county commissioner board meeting about the transfer, expressing disappointment that their jobs could be lost.

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Union County sold Runnells Specialized Hospital in 2014, but leased back the hospital’s 44-bed psychiatric unit from Runnells for up to 10 years. The hospital has been operating privately under the Runnells name.

With the leaseback agreement set to expire, the county will no longer operate Cornerstone after Dec. 15, county spokesperson Kelly Martins told TAPinto.

The agreement required Runnells to seek approval from the New Jersey Department of Health for a license transfer.

Bridget Devane, HPAE’s public policy director, told TAPinto an application was filed in June with the state department of health.

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“Center Management Group, LLC through its affiliate, Runnells BH Operating LLC ('Runnells BH Opco'), has exercised its option to acquire the psychiatric hospital license rights and operation of the psychiatric beds from the County of Union,” attorney Robert J. Fogg wrote in a July 15 letter to the state health department.

The county employees who work at Cornerstone, members of HPAE Local 5112, are negotiating over the terms of their payouts and their settlements, including details of benefits and pensions, according to Devane. They are also negotiating for the possibility to retain their jobs under the new management.

“There’s still uncertainty over what the county will be paying out,” Devane said.

At the commissioner board meeting Anne-Marie Howarth, president of HPAE Local 5112, recalled when staff worked through the early days of the COVID-19 pandemic.

“We want to know, where’s the COVID money?” Howarth asked. “There was government money allocated for our health care workers.”

Officials did not answer this question at the meeting.

“The allowable use of COVID-19 recovery funds (ARPA), has no correlation with this situation, and therefore, cannot be used to maintain the facility or retain staff,” Martins said on Thursday.

Devane said there is also a concern about keeping care stable for patients of the facility.

“Thankfully, they are staying within Union County, but you want to make sure that those services transfer and that there isn't a disruption in care for many of these patients,” she said.

This story was made possible through a collaboration of TAPinto sites in Union County.

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