June 27, 2016: Budget Proposal Restores $50 Million in Proposed Charity Care Cuts


A proposed $50 million in additional cuts to the charity care program have been reinstated in the fiscal year 2017 budget proposal currently working its way through the Legislature following an ongoing advocacy effort by NJHA and the hospital community.

The Assembly Budget Committee approved the budget proposal, with the Senate Budget Committee still set to take action. If approved, the bill is likely to be heard by the full Senate and Assembly on Monday. NJHA is closely monitoring the budget’s progress and is engaging with the Governor’s office on the importance of this funding restoration.

“We are very grateful – and relieved – that the Legislature has restored this $50 million additional cut to charity care,” said NJHA President and CEO Betsy Ryan. “The added $50 million cut would cause significant harm as hospitals work to fulfill their obligation to provide round-the-clock care to their communities – including those in need and without health insurance.”

If the $50 million restoration stands, total charity care funding for 2017 would be $352 million. The distribution formula remains the same as the Governor's original budget proposal in February. NJHA also has learned that the budget includes an additional $11 million for nursing homes.

“It's not in our best interest to make a cut that also costs our state federal matching funds,” added Ryan. “We look forward to working with the Governor to maintain this crucial funding that supports hospitals in providing quality healthcare to our state’s uninsured residents.”