May 2, 2008 - 1:48pm
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CONAWAY SETS MONDAY HEARING FOR 4-BILL PACKAGE TO IMPROVE HOSPITAL EFFICIENCY, ACCOUNTABILITY

CONAWAY SETS MONDAY HEARING FOR 4-BILL PACKAGE TO IMPROVE HOSPITAL EFFICIENCY, ACCOUNTABILITY

Assembly Health Panel to Take-Up Measures Aimed at Stabilizing
Financial Health of State's Health Care Centers

(TRENTON) - Aiming to stabilize the long-term financial health of the state's hospital industry to stave-off future hospital closings, Assemblyman Herb Conaway, MD said the Assembly Health and Senior Services Committee will consider a multi-bill legislative package to enhance the fiscal transparency, accountability and efficiency at general hospitals across New Jersey.

"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 Conaway (D-Burlington), chairman of the health panel and a practicing physician.  "It is imperative that the boards tasked with overseeing hospital finances have the knowledge and skills necessary to see the industry through these tough times. 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."

According to the New Jersey Hospital Association, twenty-five years ago New Jersey was home to 112 full-service hospitals; now there are 78 with several threatening to close.  Since 1992, New Jersey has lost 20 hospitals.
Conaway is spearheading four measures that would counteract some of the significant issues feeding the current hospital fiscal crunch: 

  • Legislation that would require all trustees of general hospital boards to complete a training program approved by the commissioner of Health and Senior Services (A-2606); 
  • A bill that would require every New Jersey hospital to hold at least one annual public meeting to allow the community to discuss their concerns related to the delivery of health services (A-2607);
  • A measure that would authorize the Department of Health and Senior Services to perform enhanced monitoring of financial performance and intervention management for hospitals that it deems are in fiscal distress  (A-2608);
  • Legislation to prohibit hospitals from charging uninsured patients an amount greater than 15 percent of the Medicare rate while creating a sliding-scale based on income to determine how much an uninsured patient is charged for services rendered (A-2609).

The measures are based on recommendations for improving the fiscal accountability and financial health of the state's hospital industry from the New Jersey Commission on Rationalizing Health Care Resources. The commission released its final report earlier this year.

"We have a responsibility to ensure that quality health care is within the reach of every New Jerseyan, whether they live in an urban center or a rural by-way," said Conaway.  "Making transparency and accountability a priority in hospital administration can help to avert the potential for another community hospital to have to shut its doors due to dire financial circumstances." 

Conaway has scheduled the four-bill package for a Monday, May 5, morning hearing in the Assembly Health and Senior Services Committee.

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TEEL can be reached via email at ateel@njleg.org.