The New Jersey Hospital Association (NJHA) is sounding an alarm about the bleak financial outlook of the state's hospitals - most ended 1998 in the red. This represents a
pivotal springboard opportunity for hospitals there to discuss key financial issues, concerns and strategies with patients, the community, media and other key stakeholder groups.
The average operating margin of New Jersey hospitals was negative 1.7%. Margins have not been that low since 1976, according to the NJHA report.
While total revenues totaled $10.3 billion, total expenses were $10.5 billion. Overall, statewide hospital losses were nearly $172 million. The financial struggles are being
attributed to:
- a $1.8 billion in Medicare cuts from the Balanced Budget Act of 1997;
- a $180 million shortfall in state funding for charity care;
- the bankruptcy of two HMOs, which left hospitals unpaid for $150 million in services; and
- the ongoing issues involved with delayed and denied HMO payments.
(NJHA, Becki Brown, 732/528-4468)