New Jersey Health Department Releases Hospital Charity Care Reimbursement Figures for FY 2002

The state Department of Health and Senior Services has determined FY 2002 amounts of charity care subsidies to New Jersey hospitals, cutting funding at more than half the facilities while awarding a "handful" of hospitals "multimillion dollar" increases, the Newark Star-Ledger reports. The state calculated the reimbursements using a "complex formula" that considered the amount of charity care provided by the hospital, the facility's "profitability" and its ratio of "public-to-private" payers. Overall, New Jersey hospitals will receive $381 million from the state this year, an increase of $25.8 million from last year. Because the funding allocations are "formula driven," Marilyn Dahl, senior assistant commissioner of health planning and regulation for the state health department, noted, "There is no discretion in the way we allocate subsidies." Some hospitals, however, say the funding they will receive based on the formula is "hardly enough" to cover losses they have incurred during the past several years. Sean Hopkins, senior vice president for the New Jersey Hospital Association, said, "It's still going to be rough going. There is still a $250 million shortfall and that is not a position that we as an industry like to see ourselves in."

Winners and Losers
FY 2002 charity care reimbursement amounts for several of New Jersey's hospitals, as reported by the Star-Ledger, are listed below.

• University Hospital: The facility will receive the largest share of funding -- about $85 million -- up from $54 million last year;
• Jersey City Medical Center: The facility will receive $44 million -- a 16% cut;
• St. Joseph's Regional Medical Center: The facility will receive about $32 million, the third highest figure;
• Our Lady of Lourdes Hospital: Funding will increase 269% from $329,000 last year to $1.2 million for 2002;
• Union Hospital: Reimbursements cut 60% from $1.1 million to $442,000;
• Clara Maass Medical Center: Funding will drop 53% from $1.7 million to $825,000;
• St. Francis Hospital: Funding will drop by 47%;
• St. Clare's Health Services: The facility will lose about $6.4 million for four hospitals, an 87% drop;
• St. Peter's University Hospital: Funding will drop 18%;
• South Jersey Hospital-Newcomb: Experienced largest reimbursement cut at 92%, dropping from $373,000 last year to $28,000.