Two-thirds of New Jersey’s cash-strapped hospitals stand to lose money under a proposal that would change how the state doles out $400 million for patients on Medicaid, the health insurance program for the poor. The change, slated for August, has nothing to do with New Jersey’s budget woes. It’s being proposed because state officials have finally updated a 1980s-vintage computer system that paid hospitals based on the types of services they provided two decades ago. The new system means some hospitals would suddenly lose millions, while others would get big cash influxes. A New Jersey Hospital Association analysis shows hospitals hurt the most appear to be those that operate mental health programs, which state officials say have been getting too much from Medicaid. Read full story from Star Ledger here.