N.J. May Lose $97 Million In Medicare Cuts


Under new rules for Medicare payment, that are to take effect this October, New Jersey may lose about $97 million in federal funds next year. Over the next 5 years N.J. stands to lose over $500 mn in federal funds. This data is based on analysis by the New Jersey Hospital Association.

The Health Economics department of the NJHA examined 3 provisions of a proposed rule. This rule was released on May 1 and is to be finalized in August 1. When the federal fiscal year starts – on October 1, it is to take effect. The NJHA said that the news was devastating for state hospitals.

In the last 2 years 9 hospitals had closed. This rule may see the closure of more hospitals said Betsy Ryan, President and CEO of NJHA.  Each provision was analyzed for its impact on state hospitals by the NJHA.  The “Operating Behavioral Offset” would be responsible for a loss of $77 mn next year. The “Capital Behavioral Offset” would be responsible for $6.1 mn loss. The elimination of existing capital LME funding would result in a loss of $14 mn next year.

Such deep cuts put hospital services and jobs in jeopardy.


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