New Jersey hospitals provided $2.4 billion worth of services to communities beyond what they were reimbursed or paid for in 2011, according to a new survey of 55 hospitals in the Garden State.
The survey, conducted by the New Jersey Hospital Association, showed that a total of $1.88 billion in unpaid costs of patient care was absorbed by the state’s hospitals. That included $595 million in charity care; $113 million in unpaid Medicaid costs; $172 million in unpaid Medicare costs; and $1 billion in uncollectable costs for treatment or bad debt. The Medicaid/Medicare shortfall is due to the fact that Medicaid reimbursed hospitals approximately 70 percent for the cost of care, while Medicare reimbursed hospitals 94 percent.
In addition to unpaid costs, the survey said hospitals provided about $112 million in training to health professionals and $339 million in other community-benefit programs, such as subsidized health services, research, and community-building activities.