Murphy Administration Provides $636 Million in Funding for New Jersey’s Hospitals

TRENTON – New Jersey Department of Health released the fiscal year 2019 hospital charity care and Graduate Medical Education (GME) funding distribution, which is part of more than $636 million in hospital funding provided in Gov. Murphy’s proposed budget.
“The Department is committed to supporting New Jersey’s hospitals’ efforts to provide uncompensated care to our uninsured residents,” stated New Jersey Health Commissioner Dr. Shereef Elnahal in a release. “This funding also provides for essential training of physicians to boost the healthcare workforce.”
The proposed budget includes $252 million for charity care, which is distributed to all 70 acute care hospitals and one specialty hospital in the State and is used to support hospitals’ delivery of free or reduced cost hospital care for low-income, uninsured patients. The distribution of charity care is primarily based on the percentage of uncompensated care provided by each hospital and the proportion of each hospital’s patients who receive Medicaid.
Additionally, 46 hospitals participate in the Delivery System Reform Incentive Payment Program (DSRIP), now in its seventh year. DSRIP rewards hospitals for improved quality of care and is funded at $166.6 million. GME, which is funded at $218 million and is distributed to 43 acute care hospitals in the State, supports the growth of hospital-based physician teaching programs in the State.
The proposed FY2019 hospital funding distribution for charity care and GME can be found at:
SFY 19 Charity Care Distribution:
http://www.nj.gov/health/documents/proposed_cc_summary2019.pdf
SFY 19 Hospital Funding Distribution:
http://www.nj.gov/health/documents/proposed_hf_summary2019.pdf