TRENTON - New Jersey may need to let some hospitals close to strengthen others, state Health Commissioner Heather Howard told lawmakers yesterday.
As senators worried about the effects of Gov. Corzine's proposed 14 percent cut in state aid to hospitals, Howard cited a January state report that said some New Jersey hospitals must close to improve the industry's financial woes.
"Unfortunately, because we have too many beds, some hospitals may need to close, and when a hospital closes it may make other hospitals stronger in that area," she said during a Senate budget hearing. ". . . Our job is to make sure that we're saving the safety nets and preserving access."
Of the state's 78 hospitals, four hospitals closed in the last 18 months, four others announced plans to close, and five filed for bankruptcy protection, with about half the others losing money. Twenty years ago, the state had 112 hospitals.
Corzine's proposed cut in hospital aid is part of $2.7 billion in cuts to try to fix state finances plagued by deficits, high debt and taxes. Much of the cut would come from money provided by the state to help treat the state's 1.5 million uninsured residents.
The New Jersey Hospital Association estimates the cut would mean no state aid for 26 hospitals and less aid for 37.
"We fear the ultimate losers will be New Jersey's residents, many of whom will see more hospital closures, job cuts and service reductions in their communities," said Betsy Ryan, the association's chief operating officer.
Corzine's plan calls for $608 million in so-called charity care, and for the most aid to go to hospitals that treat the most uninsured residents. It also would create an emergency fund to help struggling hospitals.
Sen. Dana Redd (D., Camden) said she feared "a statewide health care crisis" if urban hospitals closed.
"Even in difficult times, we cannot turn our backs on the health-care plight of the poor, and we cannot balance our budget on the backs of those people who are already struggling to make ends meet," Redd said, vowing to seek alternatives to health-care cuts.
Corzine said yesterday on WOR radio that he understood displeasure with his proposed cuts, but that he had no choice.
"We don't have the money," he said. "If you don't have the money, you can't spend it."