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Apr 15th

Christie highlights his plan to increase charity care by $85 million during visit to a New Brunswick hospital

Assembly Democrats ready to question his health care budget on Monday

In a visit to St. Peter's University Hospital in New Brunswick Friday, Gov. Chris Christie highlighted what he sees as key reforms and funding changes for hospitals, including $85 million in additional funding for the Charity Care program.

During the visit, made at least in part, to head off criticism of his health funding policies that is expected from Assembly Democrats on Monday, Christie affirmed what he said is his commitment to maintaining the state's safety net for the most vulnerable and in-need New Jerseyans.

"In these difficult economic times, it is our obligation to do everything in our power to provide for the most vulnerable among us," Christie said. "My fiscal year 2011 budget proposal stands up for this core belief shared by New Jerseyans by increasing Charity Care funding for hospitals by $85 million, and bringing reform, new efficiency and accountability to the funding process for key healthcare programs in New Jersey.''

"Through these initiatives, we can continue to assist the 300,000 people who received healthcare through Charity Care this year, expand services, and provide more effective and equitable programmatic funding among hospitals," the governor said.

"In this difficult economic climate, we are encouraged by Governor Christie's commitment to ensure that the state's underprivileged population and the healthcare system that serves them are priorities in the governor's proposed budget," Ronald C. Rak, the St. Peter's Healthcare System president and CEO, said.

On Monday morning, state Health and Human Services Commissioner Poonam Alaigh will appear before the Assembly Budget Committee in Trenton to discuss her agency's proposed budget.

Democrats who control the panel plan to ask Alaigh about, among other things, what they sees as Christie's plan to hike fees on senior citizens and tax hospitals.

"For the many New Jersey senior citizens living on fixed incomes, Governor Christie's plan to charge them significantly more for life-saving prescription drugs - along with slashing their property tax relief - is potentially devastating," Assemblyman Louis Greenwald (D-Camden), the panel chairman, said. "We will give these plans a thorough review."

On Wednesday and Thursday, Christie's proposed $29.3 billion came under heavy criticism when state Treasurer Andrew Eristoff appeared before both Greenwald's panel and the Senate Budget Committee.

The Assembly committee will also review the state Department of Environmental Protection budget Monday afternoon.

In New Brunswick, Christie said his proposed health care budget includes:

  • $665 million in Charity Care funding across 72 hospitals, representing an $85 million increase over the previous year while maximizing matching federal funding;
  • The removal of an artificial cap to maximize matching federal funding. One hundred percent of the 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.
  • Improvements to the distribution formula to broaden funding. He said this year's budget consolidates from three to two tiers to allow for a more equitable distribution of funds among hospitals, while minimizing any negative consequences for safety net hospitals.
  • Reducing year-to-year funding changes for hospitals. The parameters for any gain for loss in funding to any institution will be limited to 55 percent of the difference between their 2010-11 Charity Care subsidy and the total 2009-10 amount received.
  • Increasing the reimbursement floor. The governor's proposed budget increases the reimbursement floor from 5 cents on the dollar to 15 cents on the dollar, providing a more equitable level of funding for institutions that received the most limited reimbursement in the past.

– TOM HESTER, SR., NEWJERSEYNEWSROOM.COM

Last Updated ( Friday, 09 April 2010 19:03 )  

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