Commission Recommends That New Jersey Help ‘Financially Viable,’ ‘Essential’ Hospitals
New Jersey should financially help hospitals in the state that are considered "essential" and "financially viable" and allow other hospitals to face market forces, even if it leads to their closure, according to a report released Thursday by the Commission on Rationalizing Healthcare Resources, the Newark Star-Ledger reports. The commission defined an essential hospital as a facility that provides care for low-income patients, provides fundamental services such as trauma care and treats a significant portion of the local population.
The report also identified factors that cause financial strain at hospitals, including an excess of hospital beds, an increase in outpatient centers and poor oversight by hospital boards.
In addition, the commission recommended the state create a data-collection system to determine the cost of treating similar patients and aim to identify excessive or unnecessary care. Hospitals also should post their charges online and the state should hire an outside efficiency monitor to continuously report on hospitals, the commission recommended.
New Jersey Gov. Jon Corzine (D) through spokesperson Lilo Stainton said that the report will "help us make difficult choices about the best ways to spend very limited taxpayer dollars." According to the Star-Ledger, about half of the state's 79 acute care hospitals are facing budget shortfalls (Stewart/Campbell, Newark Star-Ledger, 1/25).
The report is available online.
