Stimulus Rescues NJ Hospitals

Wednesday, February 18, 2009

Officials in Trenton are still reviewing the fine print of the federal stimulus package, but as WNYC's Bob Hennelly reports, so far, they can tell the state's hospitals will get a much-needed lifeline from increased Medicaid reimbursement.

REPORTER: New Jersey is slated to get roughly $6 Billion from Washington and more than a third of that will go to Medicaid. Senate President Dick Codey says the money will go a long way to help.

CODEY: Hospitals I think will be all right Bob, because of the Obama package giving billions of dollars more in Medicaid reimbursement.

REPORTER: Since 2007, eight acute care hospitals have had to close, and as the ranks of the state's uninsured continue to mount, the tab for uncompensated charity health care provided by the hospitals has continued to grow. For WNYC in New Jersey I am Bob Hennelly.

REPORTER: A spokesperson for New Jesery's Hospital Association told WNYC that the state's non-profit hospitals have reported a 70% drop off in charitable giving. The Hospital Association is optimistic however about the provision in the Obama Recovery plan that will target almost $20 billion nationwide to help hospital upgrade their IT systems.


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