HOBOKEN UNIVERISTY MEDICAL CENTER RECEIVES $4.1 MILLION IN STABILIZATION FUNDING
Mayor Dawn Zimmer and the Hoboken Municipal Hospital Authority are pleased to announce receipt of $4.1 million in hospital stabilization funds for Fiscal Year 2011.
“We advocated strongly for this funding in order to enable Hoboken University Medical Center to continue to provide access to quality healthcare as we pursue the transfer of the hospital to private ownership,” said Mayor Dawn Zimmer. “The Hospital Authority and I thank Governor Christie and Health Commissioner Alaigh for this critical funding.”
“As authority chairwoman, I’ve worked very closely with Mayor Zimmer and I thank her, Governor Christie, and Commissioner Alaigh,” said Hoboken Municipal Hospital Authority Chairperson Toni Tomarazzo.
“This support will help to ensure the continued operations of the hospital and our ability to serve residents of Hoboken and surrounding communities,” said Hoboken University Medical Center CEO Spiros Hatiras.
The Hoboken Municipal Hospital Authority is negotiating to transfer the hospital to new ownership with the objectives of maintaining the facility as a full-service acute-care hospital, relieving the City’s taxpayers of the $52 million bond guarantee obligations made to save the hospital in 2007, and preserving the jobs of Hospital employees.
Here is the press release from NJ Department of Health and Senior Services March 21, 2011....
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:
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.
- 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
