Statement of NJHA President and CEO Cathy Bennett

on Gov. Murphy’s FY 2022 Budget Proposal

Feb. 23, 2021

“Thank you to Governor Murphy for a budget proposal that recognizes the critical role of our healthcare infrastructure and healthcare heroes in both responding to the COVID-19 pandemic and leading the way back.  As we enter the second year of this pandemic, we know the steep financial costs for healthcare facilities as they cared for a surge of patients, incurring the dual impact of skyrocketing expenses and plunging revenue. Increasing Charity Care funding and continuing to fund our Regional Coordinator Hospitals is a strong statement of support in recognizing these challenges.

“Throughout this long year, our hospitals have remained places of respite for all New Jerseyans, and especially for our most vulnerable citizens who have nowhere else to turn. NJHA looks forward to working with state leaders during this budget season to ensure that New Jersey’s healthcare system can emerge from the pandemic in an even stronger position.”

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On behalf of our nearly 400 members, here are NJHA’s additional budget priorities:

• Funding to reimburse healthcare sites for the programmatic and administration costs of the COVID vaccine to offset some of the added expenses of providing the vaccine to community members.
• Funding for nursing home pilot projects to improve efficiencies of care and redesign efforts to best meet the needs of the residents within these communities.
• Continued funding in the nursing home Medicaid rate to invest in employee wage increases and healthcare quality activities.
• A 10 percent increase in the daily rate for Assisted Living providers to cover the cost of the state’s increase in the minimum wage.
• A one-time add-on to the Medicaid capitation rate for Programs for All-Inclusive Care for the Elderly (PACE) sites to address cost increases associated with converting to an entirely at-home operation to protect the frail elderly living, including costs for testing, personal protective equipment, telehealth and transportation.
• Transparency around the State’s Medicaid MCO spending, in order to reduce healthcare costs and identify best practices.