Murphy Administration Provides $670 Million in Funding for New Jersey’s Hospital

The New Jersey Department of Health today released the fiscal year 2020 hospital Charity Care, Graduate Medical Education (GME), and Graduate Medical Education Supplemental (GME-S) funding distributions. This is part of more than $670 million in hospital funding provided in Governor Murphy’s proposed budget.

“The Department is committed to supporting New Jersey’s hospitals’ efforts to provide uncompensated care to our uninsured residents,” said New Jersey Health Commissioner Dr. Shereef Elnahal. “This funding also provides for essential training of physicians to boost the healthcare workforce.”

The proposed budget includes $262 million in Charity Care funding, 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 and underinsured patients. The distribution of charity care is primarily based on the uncompensated care provided by each hospital. New this year, hospitals that receive charity care will be required to connect to the New Jersey Health Information Network and will need to report to the State certain key indicators of connections to care for charity care eligible patients.

Additionally, 46 hospitals participate in the Delivery System Reform Incentive Payment Program (DSRIP), now in its eighth year. DSRIP rewards hospitals for improved quality of care and is funded at $166.6 million. GME funding supports the growth of hospital-based physician teaching programs in the State and is funded at $218 million and distributed to 42 acute care hospitals. GME Supplemental funding provides additional support for 14 hospitals that serve more Medicaid patients and is funded at $24 million.

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