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NEWS RELEASE Governor Jon S. Corzine August 8, 2008 FOR MORE INFORMATION: Sean Darcy Jim Gardner 609-777-2600 GOVERNOR SIGNS HOSPITAL REFORM LEGISLATION Hamilton – Governor Jon S. Corzine today signed a package of four bills that will improve access to health care, protect the uninsured and strengthen the accountability and transparency of the health care delivery system in the Garden State. The legislation was signed at Robert Wood Johnson University Hospital Hamilton. “The series of hospital reform bills I am signing reflects a re-prioritization of New Jersey’s health care system,” said Governor Corzine. “These measures, combined with the stabilization fund we formally enacted in June, ensure that there is increased transparency, better financial management and long-term planning in place for all New Jersey hospitals.” The legislation addresses several key recommendations made by the Commission on Rationalizing Health Care Resources, a panel appointed by the governor to review the state’s hospitals and other health care services. “With the signing of this bill package, New Jersey takes an important step forward in improving access to health care, protecting the uninsured and strengthening the fiscal monitoring and transparency of hospital operations,” said Health and Senior Services Commissioner Heather Howard. “These key legislative reforms will strengthen New Jersey's health care system.” A2609/ S1797 will ensure that working poor families without health insurance are not overcharged for needed hospital care. Because the uninsured often pay the highest prices for services, this bill eliminates that unfair practice by requiring hospitals to charge no more than 15 percent above the Medicare rate. Uninsured families qualify for this rate if their income is less than 500 percent of the federal poverty level. “When avoidable financial hardships force hospitals to shut their doors, New Jerseyans in need are forced to travel longer distances to receive immediate medical care,” said Assemblyman Herb Conaway, Jr. (D-Burlington). “We cannot allow fiscal issues to cause another hospital to close its doors and further jeopardize the quality and availability of health care in New Jersey.” Primary sponsors of the bill were Assemblymen Herb Conaway. Jr., (D-Burlington) and Paul D. Moriarity (Camden, Gloucester). In the Senate, primary sponsors were Senators Loretta Weinberg (D-Bergen) and Bill Baroni (R-Mercer, Middlesex). Another bill, S1796/A2608 creates an Early Warning System that will provide the Department of Health and Senior Services with the authority and the information needed to adequately monitor hospital finances, identify distressed hospitals early, and institute a system of progressive monitoring. “New Jersey has faced an epidemic of hospital closures in recent years,” said Senator Bob Gordon (D-Bergen), the prime sponsor of S-1796. “Through this legislation, the Department of Health will have an early warning when a hospital becomes fiscally unstable, and will be able to take the appropriate action to ensure that the health care needs of the community are met. Hopefully, we will be able to intervene before fiscal instability gives way to fiscal insolvency, and yet another health care facility in the Garden State has to close its doors forever.” “Closer scrutiny of how health care dollars are spent at hospitals in dire financial straits can help turn around poor management and prevent a hospital from shutting its doors for good,” said Assemblyman Ralph R. Caputo (D-Essex). “Audits and monitoring by state officials will bring accountability and transparency to New Jersey’s healthcare industry,” said Assembly Majority Leader Bonnie Watson Coleman (D-Mercer). “The state has a responsibility to step in and hold hospitals accountable for how health care dollars are spent and managed.” Primary sponsors of the legislation were Senators Robert M. Gordon (D-Bergen) and Thomas H. Kean, Jr., (R-Essex. Morris, Somerset, Union). In the Assembly, primary sponsors included Assemblymen Herb Conaway, Jr. (D-Burlington), Ralph R. Caputo (D-Essex), Gary S. Schaer (D-Bergen, Essex, Passaic), Albert Coutinho (D-Essex, Union) Anthony Chiappone (D-Hudson), Assemblywoman Grace L. Spencer (D-Essex, Union) and Assembly Majority Leader Bonnie Watson Coleman (D-Mercer). Through A2607 / S1794, each general hospital and State psychiatric hospital is required to annually conduct a public meeting for the community it serves. The goal is to improve communication between a hospital and the community it serves. “Our local hospitals serve as safe havens for the residents who live nearby, and they play a vital role in the communities they serve,” said Senator Dana Redd (D-Camden, Gloucester), who is a prime sponsor of S-1794. “Hospitals can only continue to provide this necessary care if they are in tune with the needs of residents, so it is imperative that the lines of communication are open between hospital administration and the public.” It is imperative that New Jersey communities are part of the decision-making process regarding the delivery of health care services to ensure that hospitals are providing quality care to the communities that rely on its services the most,” said Assemblyman Jerry Green (D-Union). Primary sponsors of the bill were Assemblymen Jerry Green (D-Middlesx, Somerset, Union), Herb Conaway, Jr. (D-Burlington), Albert Coutinho (D-Essex, Union), Anthony Chiappone (D-Hudson) and Assemblywoman Grace L. Spencer (D-Essex, Union). In the Senate, primary sponsors were Senators Dana L. Redd (D-Camden) and Diane B. Allen (R-Burlington, Camden). Finally, S1795/A2606 requires that all general hospital trustees complete comprehensive training to ensure effective financial oversight and to hold hospital management accountable. As a result, New Jersey is now the first State to require hospital trustee training for all board members. “This law was based on recommendations from the Commission on Rationalizing Health Care Resources, which was established to examine regulatory, financing and market mechanisms that affect the long-term stability of the State’s health care delivery system,” said Senator Jim Whelan (D-Atlantic). “It is vital that all hospital board members are aware of every aspect of their facilities, and in order to do so, they must complete this training program which will help clarify the roles and duties of a hospital trustee.” “Hospital trustee members should be properly trained to fulfill their duties,” said Senator Ronald L. Rice (D-Essex). “Trustees must ensure that hospitals are operating efficiently and are financially responsible. Sufficient education and training are vital to ensuring that hospitals are staffed with the most qualified individuals in order to prevent mismanagement of resources.” “Hospital trustees must be trained in their role and responsibilities to ensure that a hospital is operating efficiently and managing its finances responsibly,” said Assemblywoman Connie Wagner (D-Bergen). “Appropriate education and training are key to ensuring that hospital boards are staffed with the most capable and knowledgeable individuals to prevent mismanagement of precious hospital resources.” Primary sponsors of the legislation were Senators Jim Whelan (D-Atlantic) and Ronald L. Rice (D-Essex). In the Assembly, primary sponsors were Assemblywomen Connie Wagner (D-Bergen) and Linda R. Greenstein (Mercer, Middlesex) and Assemblymen Herb Conaway, Jr. (D-Burlington), Anthony Chiappone (D-Hudson) and Ruben J. Ramos, Jr. (D-Hudson). Governor Corzine recently signed legislation establishing the Health Care Stabilization Fund with an appropriation of $44 million to address the financial stability of the state’s hospitals. The Health Care Stabilization Fund will provide critical support and a mechanism for working with hospitals and other financially distressed facilities that face closure or significant service reductions. |
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