Urban NJ hospitals take big charity funding hit

Wed, 28 May 2008 06:59:57 -0400

A new state formula for funding Medicaid could cut $142 million in charity care payments for treating the uninsured from hospital budgets, taking funding away completely from 22 of the state's hospitals, according to a review of the proposed changes by the New Jersey Hospital Association. The formula, which is part of the state's proposed $33 billion budget, would lead to cuts for a total of 62 hospitals, while boosting up to 18, according to the association. The biggest loser would be Jersey City Medical Center, which would see an almost $42 million cut, or almost 50 percent of its charity care aid. Meanwhile, University Hospital in Newark would get $96.5 million, a boost of just under $400,000. The formula is intended to target the funding to those who need it most, according to the state Department of Health and Senior Services.

To learn more about the proposed fund shift:
- read this article from The Star-Ledger

New Jersey hospitals losing charity care funding

Wed, 12 Mar 2008 07:59:55 -0400

About one-third of New Jersey hospitals will lose funding under a revision of the state's charity-care funding formula. The idea is to minimize cuts in funding to safety-net hospitals who would otherwise face cuts under the fiscal 2009 budget. The new formula will sort the state's hospitals, which deliver $1.3 billion in charity care collectively, into three tiers, based on the percentage of charity care each provides individually relative to total revenue.

Hospitals seen as safety-net candidates will get paid out of a special $35 million fund, but the state budget will otherwise cut charity funds from their current level of $716 million to $608 million. That $35 million fund was recommended by the recent New Jersey Commission on Rationalizing Health Care Resources--you know, the one that suggested that if a hospital isn't really needed, it should be allowed to die. This sounds like another step in that direction.

To learn more about New Jersey's charity budget plans:
- read this Modern Healthcare article (reg. req.)
- read this Newhouse News Service piece

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NJ begins sorting hospitals. Report