New Jersey Gov. Chris Christie's budget released Thursday reduces state hospital charity care funding by $150 million, reports N.J. Advance Media.
The budget cuts come after the state saw a significant reduction in hospital charity care expenditures following the Affordable Care Act.
Nearly 400,000 New Jersey residents received Medicaid coverage under the state's Medicaid expansion program, relieving hospitals of significant charity care expenses.
The number of hospitals that reported more than $10 million in charity care fell from 32 hospitals in 2013 to 15 hospitals in 2014, according to the New Jersey Department of Health.
Under the new budget, BethIsraelMedicalCenter in Newark will see charity care cut from $44 million to $32 million. Of 64 state hospitals, 47 will see charity care reductions, according to the article.
While charity care expenses have fallen across the state, hospital officials are worried their facilities are still not getting properly reimbursed for their increase in Medicaid services.
"Bottom line is that both charity care and Medicaid do not reimburse appropriately," Suzanne Ianni, president and CEO of Hospital Alliance of New Jersey, told N.J. Advance Media. "If a hospital's patient mix is comprised of many low income patients, it is extremely challenging."
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