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Showell-Lee
Nationally hospital margins are improving, but not in New Jersey, without changes more closures are expected.
Hellol again and thanks for joining us. I’m Carla Showell-Lee and you’re watching Comcast newsmakers. In the studio with me this hour is Heather Howard. She’s the Commissioner for the New Jersey Department of Health and Senior Services and today we’re talking about New Jersey hospitals and financial…
Commissioner Howard
“Distress”
Showell-Lee
Distress, yes…
Commissioner Howard
That’s right
Showell-Lee
I would say it, I was trying to look for the word to be nice.
Commissioner Howard
Yes that’s the right word to say it.
Showell-Lee
That’s a pretty powerful punch put on New Jersey hospitals wouldn’t you say?
Commissioner Howard
That’s right. We’ve had seven hospitals close over the last 18 months.
Showell-Lee
WOW
Commissioner Howard
So we have right now about ½ of the hospitals in the state operating in the red. Its unfortunately really been a perfect storm of factors. You’ve got growing number of uninsured – over 1.3 million New Jerseyians are uninsured, you’ve got increasing competition from ambulatory surgical centers, we’ve got too many hospitals to begin with, too many hospital beds. We have a commission that found that and in some cases we’ve had poor hospital management. You’ve got all these factors coming together leading to this hospital distress.
Showell-Lee
Right, but there’s some key recommendations that are being put in place. So what are we finding now? Because I know you are still making some appearances across the state.
Commissioner Howard
Yes, I’ve been traveling the state to meet with hospital boards to talk about the new standards for hospital governance. We’ve also been, there are four bills awaiting the Governor’s signature. The legislature reacted very quickly and moved four pieces of legislation through to his desk and these bills would do a number of things that we hope will help sure up the hospital system. For example, one it will require the department to develop an early warning system. For too long we’ve been reacting to hospital distress and we decided we’ve got to catch the signs of distress earlier and intervene.
Showell-Lee
Right.
Commissioner Howard
So this bill will give us the power to intervene earlier when a hospital is failing. And even impose a monitor when a hospital is failing. That’s one really important reform.
Showell-Lee
Right.
Commissioner Howard
Another reform would say that hospitals can’t charge the uninsured more than they charge a Medicare patient.
What we found is that the uninsured are least able to negotiate. When someone without health insurance goes into a hospital they can’t negotiate a good rate like an insurance company can. So this bill says you can’t charge them anymore than you are changing a Medicare patient.
And then two more reforms: One would require that all hospital trustees receive training so they’re better able to exercise management functions and then the fourth would require hospital trustees and management to hold an annual public meeting. The goals really do increase transparency and make sure the communities know when their hospitals are in distress.
Showell-Lee
Right. What about providing a fund to assist some of the hospitals?
Commissioner Howard
That is exactly right. One of the other causes for hospital distress has been under payment by all kinds of payers, that includes the State and the Federal government and what this year’s budget did, it set up a healthcare stabilization fund of 44 million dollars and that’s a fund that the department is going to use to help stabilize hospitals that are in distress.
Showell-Lee
Do we know what kind of took so long to get where we are now?
Commissioner Howard
Well it has been, you’re right, this has been many years in the making and unfortunately it really has all come together over the last couple of years and I think it’s really those number of factors and we’re unfortunately an anomaly. As you said hospitals nationally seem to be doing pretty well but in New Jersey all these factors are combining. But I think one that really is happened is these ambulatory surgical centers. We have more than New York and Pennsylvania combined and they’re draining profitable business away from the hospitals and that’s really what’s hurting hospitals financially.
Showell-Lee
How receptive has the Board been with you going around and visiting some of these different hospitals?
Commissioner Howard
I would say incredibly receptive. People who serve on hospital boards and trustees are volunteers, they’re giving a lot of their time and they’re very committed to the community and to those hospitals and so I found people very receptive to these discussions.
Showell-Lee
Right, you’ve been with the as the Commissioner for 6 months now, what are some of the goals that you have in mind?
Commissioner Howard
Well this, addressing this issue is a priority. We got to sure up our healthcare delivery system.
Showell-Lee
And do you have a timetable for that happening?
Commissioner Howard
Do we have a timetable? Well, every day we are working on it
Showell-Lee
Yeh, I know, right
Commissioner Howard
and addressing the growing problem with the uninsured of course is very important. The Governor just two weeks ago signed a very important bill that would allow us to expand our successful family care program. That’s one step towards universal healthcare. So I think making progress towards universal healthcare has got to be one of our top priorities.
Showell-Lee
Right and the bottom line of course is getting more help from that federal government.
Commissioner Howard
That is absolutely right.
Showell-Lee
Commissioner nice to see you and good information as always.
Commissioner Howard
Thank you.
Showell-Lee
This hour’s newsmaker has been Heather Howard, Commissioner for the New Jersey Department of Health and Senior Services. I’m Carla Showell-Lee for Comcast newsmakers. Thanks for watching.
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