Yesterday, the New Jersey Senate passed S782 (pdf), sponsored by Senate Majority Leader Loretta Weinberg (D-Bergen), which would require for-profit hospitals in the state to disclose all financial information to the public.
For-profit hospitals would be required to file with the New Jersey Department of Health and Senior Services, and the financials would then be posted online. Some of the financial information that would have to be provided includes:
• Audited financial statements for the past three years and quarterly unaudited financial statements for the current year for the hospital and for any related or affiliated entity of the hospital.
• Financial and operating data that falls in line with standards of the Healthcare Financial Management Association's Principles and Practices Board.
• A list of all payments for goods or services, which would include leases and rentals, made to any entity owned by a person with any affiliation to the hospital.
• Compensation, which would include salaries, benefits, bonuses and deferred compensation of the top executives and board members.
• A list of investors and joint ventures between the hospital owners and its investors.
The bill comes amidst an active for-profit hospital scene in New Jersey. Hudson Hospital Holdco, for-profit owner of Bayonne (N.J.) Medical Center, recently acquired Hoboken (N.J.) University Medical Center in November. Meadowlands Hospital Medical Center in Secaucus, N.J., is owned by for-profit investor group MHA.
Christ Hospital in Jersey City, N.J., which recently filed for Chapter 11 bankruptcy, could be taken over by a for-profit institution, as MHMC, Hudson Hospital Holdco and for-profit property management firm Community Healthcare Associates have all expressed interest in the hospital. Prime Healthcare, a for-profit hospital chain based in Ontario, Calif., withdrew its bid to purchase Christ Hospital last month.
For-profit hospitals would be required to file with the New Jersey Department of Health and Senior Services, and the financials would then be posted online. Some of the financial information that would have to be provided includes:
• Audited financial statements for the past three years and quarterly unaudited financial statements for the current year for the hospital and for any related or affiliated entity of the hospital.
• Financial and operating data that falls in line with standards of the Healthcare Financial Management Association's Principles and Practices Board.
• A list of all payments for goods or services, which would include leases and rentals, made to any entity owned by a person with any affiliation to the hospital.
• Compensation, which would include salaries, benefits, bonuses and deferred compensation of the top executives and board members.
• A list of investors and joint ventures between the hospital owners and its investors.
The bill comes amidst an active for-profit hospital scene in New Jersey. Hudson Hospital Holdco, for-profit owner of Bayonne (N.J.) Medical Center, recently acquired Hoboken (N.J.) University Medical Center in November. Meadowlands Hospital Medical Center in Secaucus, N.J., is owned by for-profit investor group MHA.
Christ Hospital in Jersey City, N.J., which recently filed for Chapter 11 bankruptcy, could be taken over by a for-profit institution, as MHMC, Hudson Hospital Holdco and for-profit property management firm Community Healthcare Associates have all expressed interest in the hospital. Prime Healthcare, a for-profit hospital chain based in Ontario, Calif., withdrew its bid to purchase Christ Hospital last month.
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