U.S. Rep. Rob Menendez (D-8) is co-sponsoring the Reinforcing Essential Health System for Communities Act to allow hospitals like CarePoint Health to access federal funding opportunities.
By John Heinis/Hudson County View
The bill was introduced by Congresswoman Lori Trahan (MA-03) and Congressman David Valadao (CA-22).
The bill establishes an “essential health system” designation within federal law, creating a pathway to streamline access to crucial funding, grants, and federal support for hospitals operating in underserved communities.
“At the heart of our communities, essential healthcare facilities serve as lifelines for countless individuals in need,” Menendez said in a statement.
“It’s imperative that we empower these vital institutions with the tools they need to fulfill their life-saving missions. The Reinforcing Essential Health Systems for Communities Act offers a critical pathway for federal assistance to flow directly to these indispensable providers.”
The Reinforcing Essential Health Systems for Communities Act would create a new designation, “essential health system,” in federal law.
The designation could be used by lawmakers to better target funding, health equity initiatives, and public health resources to support these nonprofit facilities that serve traditionally vulnerable, under-resourced communities.
“We are grateful to Representative Menendez for supporting this important piece of legislation that will hopefully provide a new financial lifeline for safety net hospitals like those operated by CarePoint Health,” exclaimed CarePoint Health President and CEO Dr. Achintya Moulick.
“Having a dedicated method of identifying streams of revenue to hospitals that need the most aid is a step in the right direction towards providing assistance to community hospitals.”
Back in December, Moulick said that CarePoint, which operates the Bayonne Medical Center, Hoboken University Medical Center, and Christ Hospital in Jersey City, would need $130 million in state funding to operate “at an optimal pace.”
Struggling to meet payroll and other expenses, the hospital chain has received $8.735 million from the state since mid-February and had a financial monitor appointed around the same time they announced a team up with former rival Hudson Regional Hospital in January.
“Safety net hospitals continue to face significant financial challenges due to insufficient state and federal funding, along with ever increasing inflationary costs including supply-chain, labor, and pharmaceuticals,” added CarePoint Vice President of Marketing, Strategy and Patient Experience Justin Drew.
“We hope this new designation will create a more efficient pipeline to provide the necessary funds so that essential community hospitals like CarePoint Health can continue to serve patients with the high-quality and compassionate care they deserve.”
Hoboken 2nd Ward Councilwoman Tiffanie Fisher, who sits on the Hoboken University Medical Center board and has endorsed Menendez for re-election, applauded the bill.
“I am happy to see this legislation from Rep Menendez. Political advocacy and support for funding is critical and currently lacking from the state and local leaders whose constituents are served and whose lives are saved by these Hudson County safety net hospitals. I hope this legislation prompts more involvement by these leaders.”
It is appalling what is going on with the hospitals all over the country. Many have shut down and the existing ones are at capacity. I do realize that many of the patients in Hudson County are on Medicaid (where reimbursements are low) or have no insurance at all. Medicare spending is down in real terms the last 15 years since Obamacare was enacted. Down 30% in inflation adjusted terms since 2009. If the government can give Ukraine $150 billion and Israel $20 billion (a country with $200 billion in foreign exchange reserves) then they should be able to better support our healthcare system!! The priorities in this country are so screwed up.