New Jersey Hospitals Prepare To Lose Necessary Funding

on March 26, 2014 by John Tenaglia

New Jersey hospitals that serve the poor and provide charity care are facing $25 million in cuts, according to Governor Christie’s proposed budget. The current subsidies for the care of the poor and uninsured will be reduced from $675 million down to $650 million. The proposed lower amount is due to a $30 million reduction in the charity care documented by New Jersey’s 72 hospitals from 2010 to 2012.

Unfortunately, some hospital officials claim that the proposed cuts do not reflect actual volume. The state’s funding formula is being examined to clarify if there is a discrepancy. Many are concerned about the largest providers of indigent care in New Jersey receiving millions less than last fiscal year. Yet, hospitals that typically do not get significant amounts in subsidies for caring for the poor are expecting increased amounts.

Even though there are proposed reductions in charity-care funding, the overall spending for hospitals statewide remains the same, which is $985 million. Additionally, New Jersey already has one of the largest Medicaid programs which will continue to expand.

Hospitals and healthcare providers facing these budget cuts can recoup revenue by hiring the collection attorneys at Slater, Tenaglia, Fritz & Hunt, P.A.

The legal team at Slater, Tenaglia, Fritz & Hunt, P.A. consists of experienced attorneys and dedicated staff. We use advanced technology to benefit our clients. We are committed to providing aggressive representation of our clients’ rights while delivering first-class customer service. We can be contacted by phone at (201) 820-6001 in New Jersey or (212) 692-0200 in New York. We can also be found on the Internet, Facebook, Linkedin, Twitter, Google+ and Youtube. And remember, all initial consultations are complimentary.