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Trenton, NJ 08625-0360

For Release:
March 21, 2011

Poonam Alaigh, MD, MSHCPM, FACP

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Office of Communications

Christie Administration Awards $30 Million to Ten Health Care Facilities to Stabilize Access to Critical Health Care Services; Governor’s Proposed Budget also Increases Funding for Charity Care, Graduate Medical Education


The Department of Health and Senior Services today announced that $30 million in Health Care Stabilization Fund grants will be awarded to 10 health care facilities facing financial and operational challenges.  The grants will provide assistance in maintaining health care access in communities where services are at risk.

“Stabilization funding provides critical support to health care facilities to ensure that access to vital services can be maintained in a community when its health care facilities are in distress,’’ said Health and Senior Services Commissioner Dr. Poonam Alaigh.  “This funding demonstrates Governor Chris Christie’s ongoing commitment to strengthen the health care safety net for New Jersey residents.’’

Health Care Stabilization Fund grants were awarded to:


Christ Hospital

$7 million

East Orange General Hospital

$3 million

Hoboken Municipal Hospital Authority

$4.1 million

Jersey City Medical Center

$3 million

Kimball Medical Center

$1.2 million

Our Lady of Lourdes Health Foundation

$1.2 million

Raritan Bay Medical Center

$4 million

Saint Mary's Hospital of Passaic

$3.3 million

St. Clare's Hospital

$1.8 million

Trinitas Regional Medical Center

$1.2 million

In addition to the $30 million in Health Care Stabilization Fund grants, Governor Christie proposed in the Fiscal Year 2012 State Budget a $30 million increase to $90 million in Graduate Medical Education (GME) and a $10 million increase to $675 million in charity care.

The proposed budget previously included critical reforms in the Charity Care, GME and Hospital Relief formulas to make the funding more equitable and predictable. The revisions in the formula also increase the efficiency in the system by streamlining administrative processes—allowing more funds to go to patient care rather than administrative costs.
Many hospitals in the state are struggling financially and depend on state funding to provide mental health and medical care to tens of thousands of New Jersey residents who either lack health insurance or are underinsured.
Specifically, under the proposed Fiscal Year 2012 State Budget:

·         Graduate Medical Education support was increased by $30 million (to $90 million) and will be distributed under a new formula to 38 qualifying hospitals rather than the 24 that received it in 2011.

·         The Hospital Relief Subsidy Fund remains stable at $166 million but will be allocated under a new formula to all 72 New Jersey hospitals rather than just the 26 that were eligible in SFY 2011.

·         Charity Care was increased by $10 million (to $675 million) and will be distributed under a new formula to all 72 New Jersey hospitals.

Healthcare Stabilization Grant applications were reviewed by a team from the DHSS in consultation with the Health Care Facilities Financing Authority.

Applications were evaluated based on the following criteria outlined in the Request for Applications

·         Health care facilities faced closure or significant reduction of services

·         Impact of updating Medicaid inpatient rates

·         Extraordinary circumstances threatened access to essential health care services for residents in a community

·         The population and community served

·         Plans are appropriate to stabilize access and availability of services to the target population

·         Activities proposed are measurable and include a reasonable time frame for outcomes to be achieved

·         The health care facility has demonstrated efforts to make efficiencies and improve facility management and governance

·         Project must be appropriate and incorporate a comprehensive budget narrative

·         A description of how services will be sustained after the grant funding ends


Facilities will be required to document progress on operational and financial indicators in order to qualify for this funding.  In addition to the quality and efficiency conditions attached to the grant, the DHSS, in consultation with the State Comptroller, will require each facility to complete an audit to assure expenditures are consistent with the provisions of statute, regulations, and any conditions imposed upon the award of the grant.  


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