New Jersey Hospitals Express Unified Concern Over Reductions in Funding, But Applaud Governor for Avoiding a ‘Bed Tax’
PRINCETON, N.J., Feb. 22 /PRNewswire-USNewswire/ — Reacting today to Governor Jon Corzine’s proposed state budget for the next fiscal year, New Jersey hospitals expressed unified concern regarding the Governor’s call to fund the charity care that hospitals provide to the uninsured at $583 million, a figure that falls far short of hospitals’ costs for delivering this care. At the same time, leaders from the four associations representing hospitals applauded Corzine’s decision not to include a hospital bed tax as a way of raising revenue for the state.
Last year, N.J. hospitals received more than $700 million — $583 million in charity care appropriations and the rest in supplemental funds distributed to many hospitals — so that they could provide state-mandated care for the uninsured. By the state’s own calculations, New Jersey’s hospitals last year provided more than $1.1 billion in care to the working poor.
“While we appreciate the fact that the Governor did not propose a bed tax as part of his 2008 budget, we must voice our regret that his plan calls for a reduction in healthcare funding,” said Michael D’Agnes, board chairman of the New Jersey Hospital Association and president and CEO of Raritan Bay Medical Center. “We look forward to working with the Administration and the state Legislature to find ways to increase funding to pay for care for the uninsured.”
“We need adequate compensation for charity care or hospitals will continue to close statewide,” said Christopher Olivia, M.D., board chair of the N.J. Council of Teaching Hospitals and president and CEO of the Cooper Health System. “Eighteen hospitals have closed in New Jersey during the past two decades as increased charity care caseloads have combined with cuts from other payers to account for a financial condition that can be described as fragile at best.”
“We appreciate Governor Corzine’s recognition in his budget address that hospitals are treating more and more uninsured, a number that has now risen to 1.4 million New Jerseyans. But we have to add that ‘free’ care is not free. Hospitals are footing the bill for what should be a societal responsibility and they simply cannot continue to do more for less,” said Suzanne Ianni, executive director of the Hospital Alliance of New Jersey. “Until the state enacts meaningful healthcare reform that not only reduces the number of uninsured but also reduces charity care utilization at our hospitals, increased charity care funding must be a priority.”
“The bottom line is that state law and our mission require hospitals to provide care to all who need it, regardless of their ability to pay,” said Father Joe Kukura, president of the Catholic Healthcare Partnership of New Jersey. “Without adequate funding for those who can’t pay, many of our hospitals face an uncertain future.”
CONTACT: Ron Czajkowski of the New Jersey Hospital Association, +1-609-275-4071.
New Jersey Hospital Association
CONTACT: Ron Czajkowski of the New Jersey Hospital Association,+1-609-275-4071