In recent years, there has been a rapid expansion of for-profit ownership of hospitals in New Jersey. Eight now operate in NJ; five more are reportedly in discussions to purchase or partner with non-profit hospitals.
The For-Profit Operators in New Jersey:
The increase in for-profit hospital ownership in New Jersey has largely been built upon an “out-of-network” model that drives up costs and shifts uninsured patients and less profitable services to non-profit hospitals. For-profit hospitals do not share in the responsibility for providing community benefits, as do non-profits, nor do they have to comply with most public financial disclosure laws.
As for-profit ownership grows, the state’s regulatory system, which should ensure compliance with safeguards and protections at NJ health care institutions, has failed to adapt to the changes in the hospital industry.
As advocates for our members and patient care advocates, HPAE believes that we need to stop the proliferation of for-profit healthcare in NJ and gain greater accountability of existing hospitals by the New Jersey Department of Health to protect the standards we have achieved.
Specifically, we will fight to:
- Pass for-profit financial accountability legislation in NJ;
- Strengthen existing CHAPA legislation; CHAPA enables the State to set terms and conditions for the transfer of a non-profit hospital to a for-profit hospital owner;
- Reform the NJ Department of Health to be a stronger enforcement mechanism;
- Negotiate successor language in our union contracts.
Learn more about the problem of for-profit healthcare and HPAE's campaign for Patients, Not Profits: