TRENTON – The Department of Health today unveiled hospital funding for fiscal year 2014, including nearly $1 billion in funding, a $10 million increase in graduate medical education funding, and continued charity care funding at $675 million.
“Governor Christie recognizes the tremendous services our hospitals provide to residents by supporting them with nearly $1 billion in funding,” said Commissioner Mary O’Dowd in announcing the figures. “This funding supports the financial viability of hospitals and supports their ability to serve their communities.”
Graduate Medical Education funding is to increase $10 million to $100 million. These funds help compensate teaching hospitals for costs directly related to resident physicians’ education.
In this year’s budget, the Hospital Relief Subsidy Fund (HRSF) is being replaced with the Delivery System Reform Incentive Payments (DSRIP) at $166.6 million, the Health Department reported. The funding level remains the same. The DSRIP program, which is part of the Medicaid Comprehensive Waiver, is a new incentive-based funding pool that hospitals may apply for later this spring. The funding formula for DSRIP is still being developed, the department said.
“To maximize our share of federal matching funds, we have reformed the way we calculate distributions so that hospitals are reimbursed based on the level and quality of care they provide to patients,” O’Dowd said. “These formulas maintain the goals of equity, transparency and predictability while minimizing fluctuations in funding.”
With the charity care allocations remaining the same and the medical education funding increasing, the total alloction is $775 million.
Allocations to 16 hospital networks will be $456.3 million for fiscal year 2014 compared to $450.4 million in FY13.
Some individual hospital allocations:
University Hospital-UMDNJ will receive $115.3 million compared to $115.4 million this fiscal year.
Robert Wood Johnson Health System: $20.7 million in FY14 compared to $21.4 million in FY13.
Hudson Holdco: $32.26 million compared to $32.22 million this fiscal year.
AtlantiCare Health System: $26.46 million in FY14 compared to $26.22 in FY13.
Graduate Medical Education and Charity Care figures can be found at:http://observer-media.go-vip.net/wp-content/uploads/sites/2/2013/03/hf_budget20141.pdf