Still recovering from a hospital rate-setting initiative that ended in the early 90s, hospitals in northern New Jersey are facing tremendous financial challenges, according to research by analyst firm HealthLeaders/Interstudy. Like their peers, hospitals in the region have struggled for decades with high labor costs triggered by nursing shortages, rising rates of uncompensated care, an aging population and low Medicare/Medicaid reimbursement. What's more, when the state's hospital price-setting regulations were lifted in 1992, hospitals weren't in a good position to bargain with managed care plans, and they still haven't regained their feet, analysts say. Particularly troubled are urban hospitals, which as elsewhere in the country have continued to decline as providers seek more profitable suburban markets. Two--including West Hudson Hospital and Hospital Center of Orange--have closed within the last three years. Gov. Jon Corzine's Commission on Rationalizing Healthcare Resources will be looking at this situation as it evaluates the overall state health system, researchers said.

To learn more analysis of northern NJ hospitals' situation:
- see the HealthLeaders/Interstudy release
- check out report on the region's hospitals by the Center for Studying Health System Change