State Freezes Charity Care for Hospitals — Revenue Crunch, Budget Blamed

A state revenue crunch that forced Treasury officials earlier this month to announce a spending and hiring freeze is now forcing Gov. Phil Murphy’s administration to hold back aid that New Jersey hospitals receive from the state for services they must provide to uninsured residents and to help train the next generation of healthcare providers.

Payments for what’s known as charity care normally go out to hospitals in mid-June but are being delayed this month as the state tries to keep a positive balance in the budget’s General Fund, state officials said yesterday.

Other funds provided to hospitals to support graduate-medical education are also being held back as legislative leaders have thus far failed to enact the Murphy’s administration plan to ease the revenue squeeze, which is rooted in the underperformance of some of the state’s major revenue streams and in how the budget itself is structured.

Click here for the full article »