Responding to concerns about access to care and the poor financial health of many New Jersey hospitals, Governor Jon S. Corzine has signed a package of four bills designed to limit hospital charges to the uninsured and enhance financial oversight of the state's hospitals.
One bill requires hospitals to charge no more than 15 percent above the Medicare rate; uninsured families qualify for this rate if their income is less than 500 percent of the federal poverty level. Two other bills are designed to improve financial oversight and management of hospitals. One of these bills implements an early warning system to monitor/audit hospital finances, identify distressed hospitals early, and institute a system of progressive monitoring, in response to “epidemic of hospital closures in recent years.” The other bill requires that all general hospital trustees complete comprehensive training to ensure effective financial oversight and to hold hospital management accountable. As a result, New Jersey is now the first State to require hospital trustee training for all board members. The final bill in the package attempts to improve community-hospital communication by requiring each hospital to annually conduct a public meeting for the community it serves.
The New Jersey Hospital Association calls the bills a step toward healthcare reform, but Association President and CEO Betsy Ryan points out, “The larger challenges that plague our healthcare system still await action, such as inadequate payments to hospitals and physicians, the rash of hospital closures and continued concerns over access to care.”
Read statements from the New Jersey Office of the Governor and the New Jersey Hospital Association.
