SENATE, No. 1927

STATE OF NEW JERSEY

INTRODUCED MARCH 20, 1997

By Senators LIPMAN, RICE and Codey

An Act concerning charity care and other uncompensated care disproportionate share payments to hospitals.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. The Commissioner of Health and Senior Services shall provide for the redistribution of charity care subsidy payments which would have been allocated to United Hospitals Medical Center from the Health Care Subsidy Fund to each hospital located within a five-mile radius of United Hospitals Medical Center that is eligible for a charity care subsidy payment pursuant to section 7 of P.L.1996, c.28 (C.26:2H-18.59e), in accordance with the methodology established pursuant to that section.

    2. The Commissioner of Human Services shall provide for the redistribution of payments from the Hospital Health Care Subsidy account in the Division of Medical Assistance and Health Services which would have been allocated to United Hospitals Medical Center to each disproportionate share hospital located within a five-mile radius of United Hospitals Medical Center that is eligible for a payment pursuant to section 12 of P.L.1996, c.28, in accordance with the methodology adopted by the commissioner pursuant to N.J.A.C.10:52-8.2.

    3. This act shall take effect immediately and be retroactive to February 18, 1997.

STATEMENT

    This bill provides for the redistribution of hospital charity care subsidy and Hospital Relief Fund (Medicaid) payments which would have been allocated to United Hospitals Medical Center in the city of Newark to each hospital located within a five-mile radius of United Hospitals Medical Center that is eligible for such a payment pursuant to P.L.1996, c.28, in accordance with the methodology previously established for each of these payments.

    United Hospitals Medical Center, which has entered into bankruptcy proceedings, has ceased to operate as a licensed acute care hospital and has transferred its patients to other facilities. On February 18, 1997, the Commissioner of Health and Senior Services granted a certificate of need for the closure of United Hospitals Medical Center and the transfer of certain services, including, but not limited to, pediatric cardiac surgery, to Newark Beth Israel Medical Center, which is part of the St. Barnabas Health Care System, and which the commissioner formally recognized as the successor to United Hospitals Medical Center (Children's Hospital of New Jersey) as the State's specialty acute care children's hospital for northern New Jersey (pursuant to section 2 of P.L.1985, c.306; C.26:2H-18a).

    This bill is intended to ensure that those hospitals which will be required to care for the medically indigent patient population previously served by United Hospitals Medical Center will be compensated appropriately for providing that care within the limits of available funds pursuant to State law.

Provides for redistribution of charity care subsidy and Hospital Relief Fund payments from United Hospitals Medical Center to other area hospitals.