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Charity care, education funding for state hospitals

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The New Jersey Department of Health will disburse $636 million to state hospitals for both charity care and graduate medical education funding.
The New Jersey Department of Health will disburse $636 million to state hospitals for both charity care and graduate medical education funding.

The New Jersey Department of Health will disburse $636 million to state hospitals for both charity care and graduate medical education funding in fiscal 2019, under Gov. Phil Murphy’s proposed budget.

The proposed budget includes $252 million for charity care, which is distributed to all 70 acute care hospitals and one specialty hospital in the State and is used to support hospitals’ delivery of free or reduced cost hospital care for low-income, uninsured patients. The distribution is based primarily on the percentage of uncompensated care provided by each hospital and the proportion of each hospital’s patients who receive Medicaid.

Additionally, 46 hospitals participate in the seven-year-old Delivery System Reform Incentive Payment Program, which rewards hospitals for improved quality of care and is funded at $166.6 million. GME, which is funded at $218 million and is distributed to 43 acute care hospitals in the State, supports the growth of hospital-based physician teaching programs in the State.

University Hospital, a state-owned hospital in Newark which specializes in treating uninsured, low-income patients, is slated to get the most in charity funding at roughly $46 million, while St. Joseph’s Regional Medical Center in Paterson will get the second most at just under $35 million in fiscal 2019.

The full list of hospitals getting charity care funding in FY2019 can be found here.

In terms of GME funding, University Hospital is also slated to get the most funding at $77.7 million, with St. Joseph’s getting the second most at $52.4 million. Cooper Hospital/University Medical Center will get the third most at $41.7 million.

A full list of hospitals getting GME funding can be found here.

“The Department is committed to supporting New Jersey’s hospitals’ efforts to provide uncompensated care to our uninsured residents,” said New Jersey Health Commissioner Dr. Shereef Elnahal in a press release. “This funding also provides for essential training of physicians to boost the healthcare workforce.” 

 

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Vince Calio

Vince Calio


Vince Calio covers health care and manufacturing for NJBIZ. You can contact him at vcalio@njbiz.com.

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