Urban NJ hospitals take big charity funding hit

A new state formula for funding Medicaid could cut $142 million in charity care payments for treating the uninsured from hospital budgets, taking funding away completely from 22 of the state's hospitals, according to a review of the proposed changes by the New Jersey Hospital Association. The formula, which is part of the state's proposed $33 billion budget, would lead to cuts for a total of 62 hospitals, while boosting up to 18, according to the association. The biggest loser would be Jersey City Medical Center, which would see an almost $42 million cut, or almost 50 percent of its charity care aid. Meanwhile, University Hospital in Newark would get $96.5 million, a boost of just under $400,000. The formula is intended to target the funding to those who need it most, according to the state Department of Health and Senior Services.

To learn more about the proposed fund shift:
- read this article from The Star-Ledger