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For Release:
June 08, 2010

Poonam Alaigh, MD, MSHCPM, FACP

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Office of Communications
(609) 984-7160

Preliminary Charity Care Data Released; Revised Formula and More Equitable Distribution Maintain Health Care Safety Net


The Department of Health and Senior Services today released preliminary charity care data that increases funding by $85 million over the previous year and provides for a more equitable distribution of $665 million in charity funds among hospitals.


“This funding increase clearly demonstrates Gov. Chris Christie’s commitment to maintain and strengthen the health care safety net for New Jersey’s most vulnerable residents when they need it most,’’ said Health and Senior Services Commissioner Dr. Poonam Alaigh. “Despite the state’s current fiscal crisis, the Governor has made charity care a priority,” Dr. Alaigh said.


This year’s charity care funding maximizes federal matching dollars, creates a more equitable distribution of funds to hospitals, protects safety net hospitals and responsibly manages the financial risk to hospitals by normalizing the year to year funding changes.


Improvements to the distribution formula reduce year-to-year funding changes while minimizing any negative consequences for safety net hospitals.  The formula preserves the goal of charity care to ensure the state’s limited resources go to the hospitals that provide the most charity care funding.


The formula increases the reimbursement floor by 200%, providing a more equitable level of funding for institutions that received the most limited reimbursement in the past.


The $85 million in funding includes a $60 million increase over last year’s $605 million original budget allocation and a restoration of $25 million made as part of mid-year budget reductions.


The Governor’s Fiscal Year 2011 Budget Provides For:


·         $665 million in Charity Care funding across 72 New Jersey hospitals, representing an $85 million increase over the previous year while maximizing matching federal funding.  300,000 received medical care through Charity Care last year;


·         The removal of an artificial cap to maximize matching federal funding.  100 percent of this additional revenue is devoted to hospital funding, resulting in an additional $85 million in Charity Care funding;


·         $40 million in funding for Federally Qualified Health Centers is maintained;


·         $30 million allocation for a Healthcare Stabilization Fund.


A link to the preliminary data can be found at:


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