GOVERNOR ADDRESSES HOSPITAL CEO'S

Fiscal responsibility will pave better future for New Jersey's health-care system

PRINCETON - Governor Jon S. Corzine today met with 75 hospital CEO's to discuss his budget proposal, charity care and the outlook for New Jersey hospitals. During his remarks the Governor pointed to mutual perspectives shared by both state government and the hospitals: the need for universal health care; the need to fight the federal government on cuts to Medicaid and SCHIP and the need for both the State and hospitals to be more efficient.

"I believe that fiscal responsibility now will pave the way for a better future in New Jersey -- and that includes the future of the health-care system.

"As many of you know, there are just too many empty beds throughout the state for all the hospitals to remain solvent, with or without the state support for the uninsured. We plan to allocate state aid much more rationally from now on so that the hospitals that need it the most, and serve the most needy, get the greatest share.

"The reimbursement formula we are proposing is consistent with the principles of my state budget: protecting the most vulnerable in our society.

"We--government and hospitals--need to share a common philosophy: to become more efficient, make choices, conduct thorough reviews and audits of our operations, eliminate duplications if necessary, think of creative ways of doing as much as we can with what we've got, and consider partnerships with private companies with common goals.

"I know many hospitals are struggling and we need to keep the lines of communication open. But I also know there are many strong, resilient, and creative hospitals and hospital networks in New Jersey -- and it's going to stay that way."

Governor Corzine's proposed $32.9 billion budget contains $608 million for unreimbursed patient costs or charity care. A portion of that funding will be held in the newly created Hospital Stabilization Fund to assist hospitals facing specific financial needs during the fiscal year. Total state reimbursement to hospitals for the uninsured remains $200 million above 2004 funding levels. 

###

Photos from Governor Corzine's public events are available in the Governor's Newsroom section on the State of New Jersey web page.