The Mountainside Hospital, an independent and private entity up until the mid-1990s, joined a not-for-profit consortium of hospitals in Northern New Jersey launched by Atlantic Healthcare and since then has been unprofitable. The hospital is collectively managed by (1) Atlantic Healthcare, (2) Mountainside Hospital Foundation (“Board”), and (3) the hospital’s Medical Staff. These three groups, which handle the hospital’s administrative, financial, and operational aspects, have determined that the hospital is in need of a financial restructuring. The entity has hemorrhaged over $100 million in cash over the past several years ($1-$1.5 million per month) and unless something drastically changes, the hospital will become insolvent within the next 18-24 months.

In an effort to save one of the surrounding community’s most recognizable healthcare landmarks, the Board retained Henna Associates to prospect alternatives to operationally and financially stabilize the not-for-profit entity on the basis that the hospital's most valuable asset is the real estate that it owns on a historical cost basis.