PO Box 360
Trenton, NJ 08625-0360

For Release:
03/06/2015

Mary E. O'Dowd, M.P.H.
Commissioner

For Further Information Contact:
Office of Communications
(609) 984-7160

Christie Administration Continues Investment in New Jersey’s Healthcare System --$796 million in support to Hospitals—

Governor Chris Christie's Fiscal Year 2016 proposed budget supports New Jersey's healthcare system with $796 million in hospital funding.

The proposed budget includes $127.3 million for Graduate Medical Education (GME), nearly a $30 million increase from last year's budget to support New Jersey's teaching hospitals, while continuing to provide $502 million in Charity Care funding.

"Nationally our healthcare system is going through a fundamental transformation with the driving factors being payment methodology changes, emphasis on value, reduced cost and wellness," said Commissioner O'Dowd. "The results include less need for inpatient services and increased need for outpatient services and wellness initiatives."

"New Jersey is using this budget to support the transformation of the healthcare system to better serve our communities and buy more of what we want," said Health Commissioner Mary E. O'Dowd. "The increase in GME reflects the Governor's ongoing commitment to the growth of New Jersey's medical schools and the expansion of hospital-based teaching programs."

Since the beginning of this administration, Governor Christie has more than doubled the amount of funding dedicated to GME, from $60 million to $127.3 million. The number of hospitals receiving this funding has also grown to 42, up from 22 hospitals.

In the proposed budget, Governor Christie also increases by $45 million funding to physicians who treat Medicaid patients-providing greater access to care for the Medicaid population.

Fiscal Year 2016 Charity Care funding levels are based on preliminary Documented Charity Care for calendar year 2014 of less than $580 million, which represents more than a 40 percent reduction in care provided to the uninsured in New Jersey. In large part this is due to the successful expansion of Medicaid by Governor Christie.

When this reduction in documented Charity Care is taken into account, the proposed state subsidy rises to about 87 cents for every dollar of Charity Care provided, up from about 63 cents of subsidy for every dollar of Charity Care provided overall.

"Providing $502 million in charity care funding will allow for a reasonable transition for hospitals while also giving the state the opportunity to invest in other programs such as investing in the future of our health care workforce, which is necessary to support the changing healthcare landscape," said Commissioner O'Dowd.

The proposed budget dedicates $166.6 million for the hospital incentive program known as Delivery System Reform Incentive Payments (DSRIP) which rewards hospitals for achieving measurable improvement in quality. A total of 50 hospitals are participating in this program and their plans are currently under federal review.

The proposed FY 2016 hospital funding distribution can be found at:
https://nj.gov/health/documents/hf_budget2016.pdf

To view the Calendar Year 2013 Documented Charity Care report visit:
https://nj.gov/health/charitycare/hdcc.shtml

 

Last Reviewed: 3/6/2015