New Jersey Has Too Many Hospitals, Inadequate Government Payments For Care, Studies Find
- Friday, January 5, 2007, 19:30
- Primary Care
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Inadequate government payments for care and too many hospitals and for-profit outpatient centers that “cherry pick” insured patients are perpetuating financial problems at New Jersey hospitals, according to two recent studies, the AP/Philadelphia Inquirer reports. One study by the health care advisory firm Avalere Health found that “hospitals are exorbitantly expensive” and that there is “significant variation around the state” in the charges for the same procedures. According to the Avalere study, there are more hospital admissions in New Jersey compared with other states. There are too many patient beds in the state and duplicative services, it found. The report recommends that services be limited in some areas and that access to care be expanded in others. A separate study commissioned by the New Jersey Hospital Association found that Medicare, Medicaid and a state charity subsidy cover 58% of all hospital patients and provide 73% to 92% of hospitals’ costs for the patients’ care. The study notes that private insurance companies have been negotiating lower reimbursement rates recently. In addition, outpatient surgery and diagnostic centers are drawing off insured patients, and some parts of the state have too many patient beds or too many hospitals, according to the report. The study also cites a Dartmouth Medical School report on severely ill Medicare beneficiaries, noting that New Jersey hospitals have the highest number of visits by physicians, particularly specialists, and the greatest amount of time spent in intensive care units before death compared with all other states. Some New Jersey lawmakers are working to address the financial problems of state hospitals. State Sen. Joseph Vitale (D) — chair of the Health, Human Services and Senior Citizens Committee — and others are drafting legislation that would require all state residents to purchase affordable medical insurance. In addition, New Jersey Gov. Jon Corzine (D) has established a commission to examine the state’s needs for hospitals, doctors and clinics and to recommend whether some hospitals could be closed (Johnson, AP/Philadelphia Inquirer, 12/27/06).
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