Measures Would Help To Stabilize Financial Health of State’s Hospitals
The Assembly Health and Senior Services Committee today released a multi-bill legislative package aimed at stabilizing the long-term financial health of the state’s hospital industry to stave-off future hospital closings. The measures are sponsored by Assembly members Herb Conaway, MD, Ralph R. Caputo, Albert Coutinho, Jerry Green, Linda Greenstein, Gary Schaer, Grace Spencer, Connie Wagner and Bonnie Watson Coleman.
“When avoidable financial hardships force hospitals to shut their doors, New Jerseyans in need are forced to travel longer distances to receive immediate medical care,” said Conaway (D-Burlington), chairman of the health panel and a practicing physician. “We cannot allow fiscal issues to cause another hospital to close its doors and further jeopardize the quality and availability of health care in New Jersey.”
The multi-bill package would enhance the fiscal transparency, accountability and efficiency at general hospitals across New Jersey.
The measures would help to counteract some of the significant issues feeding the current hospital fiscal crunch. The first measure (A-2606) – sponsored by Wagner (D-Bergen), Conaway, and Greenstein (D-Middlesex/Mercer) – would require all general hospital board trustees to complete a training program approved by the commissioner of the state Department of Health and Senior Services.
“Hospital trustees must be trained in their role and responsibilities to ensure that a hospital
is operating efficiently and managing its finances responsibly,” said Wagner. “Appropriate education and training are key to ensuring that hospital boards are staffed with the most capable and knowledgeable individuals to prevent mismanagement of precious hospital resources.”
The bill was released 8-1-1.
The second measure (A-2607) – sponsored by Green (D-Union), Conaway, Coutinho (D-Essex) and Spencer (D-Essex) – would require every New Jersey hospital to hold at least one annual public meeting to allow the community to discuss concerns related to the delivery of health services. It was released by a vote of 10 to 0.
“It is imperative that New Jersey communities are part of the decision-making process regarding the delivery of health care services to ensure that hospitals are providing quality care to the communities that rely on its services the most,” said Green.
“Local hospitals have a responsibility to serve the needs of area residents first and foremost,” said Coutinho. “Decisions regarding how health care is delivered should not be made in a vacuum – the local community deserves to have a voice in the process.”
“Hospital officials need to ensure an open public dialogue regarding programs and services that can ensure the community’s health care needs are being met,” said Spencer.
Conaway, Caputo (D-Essex), Watson Coleman (D-Mercer), Schaer (D-Bergen/Passaic), Coutinho, and Spencer are sponsoring another bill (A-2608), which would authorize the state Department of Health and Senior Services to perform enhanced monitoring of financial performance and intervene in cases where a hospital is found to be in fiscal distress.
“Closer scrutiny of how health care dollars are spent at hospitals in dire financial straits can help turn around poor management and prevent a hospital from shutting its doors for good,” said Caputo.
“Audits and monitoring by state officials would bring accountability and transparency to New Jersey’s healthcare industry,” said Watson Coleman. “The state has a responsibility to step in and hold hospitals accountable for how health care dollars are spent and managed.”
“Giving state officials the power to intervene at the first sign of financial distress can help prevent the closing of yet another New Jersey health care facility,” said Schaer. “We must do everything to ensure that hospitals already operating in the red are being doubly responsible with their finances.”
The committee heard testimony but held the measure for future consideration.
The final measure (A-2609) – sponsored by Conaway and released 8-0-2 – would prohibit hospitals from charging uninsured patients an amount greater than 15 percent of the Medicare rate while creating a sliding-scale based on income to determine how much an uninsured patient is charged for services rendered.
The measures are based on recommendations for improving the fiscal accountability and financial health of the state’s hospital industry from the New Jersey Commission on Rationalizing Health Care Resources. The commission released its final report earlier this year.
The bill package will now head to the Assembly Speaker for further consideration. He may decide if and when to post the measures for a floor vote.
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