NJ Spotlight published the following article on February 28, 2014. To read the full article, click here.
DROP IN DEMAND FOR CHARITY CARE CONTRIBUTES TO LOWER GOVERNMENT SUBSIDY
ANDREW KITCHENMAN | FEBRUARY 28, 2014
New Jersey hospitals would see a $25 million reduction in the government subsidy to provide charity care in 2015, based in part on a drop in demand for these services that started occurring even before the expansion of medical coverage under the federal Affordable Care Act.
Government support for charity care would drop from $675 million in the current fiscal year to $650 million under the budget proposed by Gov Chris Christiefor the fiscal year starting on July 1.
To determine the subsidy, state officials drew on a state report] showing that expenditures for charity care provided by the state’s hospitals fell from $1.03 billion in 2010 to $997 million in 2012. It’s not entirely clear what drove the decline, which occurred before most of the expansion in insurance coverage under the federal Affordable Care Act.
Overall state and federal spending on hospitals isn’t changing.