PO Box 360
Trenton, NJ 08625-0360

For Release:
April 20 ,2012

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

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

Christie Administration Furthers Commitment to New Jersey's Hospitals by Awarding $30 Million to 8 Health Care Facilities Funds to Stabilize Access to Critical Health Care Services

The Department of Health and Senior Services today announced that $30 million in Health Care Stabilization Fund grants will be awarded to 8 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 Mary E. O'Dowd. "Governor Chris Christie has further demonstrated his commitment to strengthen the health care safety net for New Jersey residents with nearly $1 billion in hospital subsidy funding.''

Health Care Stabilization Fund grants were awarded to:

 

Christ Hospital

$7 million

East Orange General Hospital

$1 million

Jersey City Medical Center

$6 million

Kimball Medical Center

$1 million

Raritan Bay Medical Center

$1 million

St. Mary's Hospital of Passaic

$9.5 million

St. Clare's Hospital

$3.5 million

University Hospital

$1 million

Many hospitals in the state are struggling financially and depend on state funding to provide care to tens of thousands of New Jersey residents who either lack health insurance or are underinsured.

The Governor's budget also provides more than $1 billion in funding to maintain his commitment to ensuring access to services for the uninsured. Hospitals will receive $961 million in subsidies to support their services to the uninsured. Charity Care was maintained at $675 million, the Hospital Relief Subsidy Fund remains at $166 million and Graduate Medical Education support remains stable at $90 million. Additionally Federally Qualified Health Centers will receive $46.4 million in reimbursements.

Healthcare Stabilization Grant applications were reviewed by a team from the Department 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
  • 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

The entire RFA can be viewed at:

http://nj.gov/health/healthfacilities/documents/stab_grant_rfa122011.pdf

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.