PO Box 360
Trenton, NJ 08625-0360

For Release:
March 05, 2012

Mary E. O'Dowd, M.P.H.
Commissioner

For Further Information Contact:
Office of Communications
(609) 984-7160

Governor Christie Builds on Commitment to New Jersey’s Hospitals

The Department of Health and Senior Services today released hospital specific distribution amounts for New Jersey's seventy two hospitals totaling nearly $1 billion that will be distributed as part of Governor Chris Christie's proposed Fiscal Year 2013 Budget.

Governor Christie's budget preserves New Jersey's healthcare safety net for the most vulnerable by maintaining nearly $1 billion in funding for Charity Care, Graduate Medical Education and the Hospital Relief Subsidy Fund.

"New Jersey hospitals provide excellent care to our state's residents, even when they face challenging circumstances" said Governor Christie. "It is critical that we support our hospitals in protecting the health of New Jerseyans and particularly our most vulnerable."

The Governor's proposed Fiscal Year 2013 Budget provides $961 million in hospital funding: $675 Million for Charity Care, $90 Million in Graduate Medical Education funding to train physicians and $166 million for the Hospital Relief Subsidy Fund, which assists hospitals with high volumes of behavioral health and obstetric care. The Governor's proposed budget also includes $30 million for the Health Care Stabilization Fund. That fund, which is awarded competitively in the spring, assists health care organizations in maintaining health care access in communities where services are at risk.

"This funding supports the financial viability of hospitals and allows them to pursue their mission to serve their communities - this is particularly important now given the dynamic changes occurring in the healthcare system," said Health and Senior Services Commissioner Mary E. O'Dowd. "The Governor has again demonstrated his commitment to strengthening health care in our state."

Since Governor Christie took office, funding for hospitals has increased $56.3 million. In addition, the funding formulas were revised to make funding more equitable and predictable. The Christie Administration continues to work with the hospital industry to refine the formulas to ensure that limited state resources are appropriately allocated to the hospitals serving the greatest number of patients in need.

In his budget address last month, Governor Christie also announced a consolidation of hospital funding programs in the Department of Health and Senior Services. The Graduate Medical Education and Hospital Relief Subsidy programs will be relocated from the Department of Human Services to the Office of Healthcare Finance in the Department of Health and Senior Services to maintain the funding policy goals of equity, transparency and predictability.

Graduate Medical Education, Hospital Relief Subsidy Fund and Charity Care figures can be found at http://www.state.nj.us/health/documents/hf_budget2013.pdf