New Jersey Health Commissioner Says State Will Redistribute Hospital Charity Care Funds

Main Category: Public Health
Also Included In: Aid / Disasters
Article Date: 15 Apr 2008 - 8:00 PDT

email to a friend   printer friendly   view / write opinions   rate article

New Jersey Health Commissioner Heather Howard on Wednesday addressed lawmakers' concerns about Gov. Jon Corzine's (D) proposed $33.3 billion budget, which would reduce charity care funding to hospitals by $108 million to $608 million and reformulate the way hospitals receive such funding, the Bergen Record reports. The proposed cuts come as four hospitals have closed and four others are set to close, prompting lawmakers to express concern about whether indigent patients will have to travel long distances to receive care.

According to the Record, hospitals that depend on charity care for 8% or more of their revenue would experience the lowest cut of 5%, and some might receive additional funding. Funding would be reduced by 34% to hospitals that receive between 3.6% and 8% of their revenue from charity care, and hospitals that receive less than 3.6% of their revenue from charity care would not receive state funding.

Howard said, "The charity care is redistributed based on an analysis of where we think those patients are going," adding that the health department will "make sure we are preserving the safety nets and preserving access" (Reitmeyer, Bergen Record, 4/10).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.