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Hospital Groups Stand United on State Budget
Date:4/21/2009

ni, president and CEO of the Hospital Alliance. "In this dire economy, we need to overturn every stone to ensure New Jersey is maximizing its federal reimbursement. We appeal to our state leaders to fully explore the golden opportunity identified by the Task Force. New Jersey just can't afford to leave 'free' healthcare dollars on the table in Washington."

The associations' consensus principles are:

  • Ensure that no hospital receives less than 10 cents on the dollar in charity care reimbursement. Charity care reimbursement already is based on a rate well below the national average for Medicaid.
  • Exhaust all efforts to maximize federal matching funds. The Task Force has identified existing state dollars, generated by an assessment on hospitals, that it believes qualify for federal matching funds. By taking advantage of that opportunity, the state could continue providing for New Jersey's federally qualified health centers (the current recipients) while bringing in $20 million in new federal dollars. That new funding could offset the cuts planned to graduate medical education ($4 million in state funds), the Hospital Relief Subsidy Fund ($3.2 million) and the Health Care Stabilization Fund ($2 million); ensure that all hospitals receive at least 10 cents on the dollar for charity care ($2.5 million); and support an expanded definition of "safety net" hospitals (state share not available.)
  • Support the Health Care Stabilization Fund for 2010 with funding no less than $40 million, while maintaining the existing application process for these funds.
  • Using the most current audited claims data available, establish wider "corridors" between hospitals' allocations from one year to the next. This helps ensure that charity care dollars "follow the care." Any hospitals that suffer deep losses over the prior year should receive priority for assistance from the Stabilization Fund.'/>"/>

SOURCE New Jersey Hospital Association
Copyright©2009 PR Newswire.
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