New Jersey hospitals could lose an estimated $3.6 billion from Medicaid changes over the next eight years, forcing them to bring their expenses in line, Inspira Health Network CEO Amy Mansue said Friday during a panel discussion in Cherry Hill.
Read more NBA reveals Sixers’ Las Vegas Summer League schedule, which includes Labaron Philon’s expected debut
“That will only happen with dramatic changes in how we look at our business,” she said during the Southern New Jersey Development Council’s Annual Health Care Leadership Forum at the Legacy Club of Woodcrest.
Mansue predicted that health systems will close little-used programs. “There is no way to cut that much money out of the hospitals without doing some of that,” she said.
The $3.6 billion estimate from the New Jersey Hospital Association does not include hospitals’ losses from the growing population of uninsured people who show up at emergency departments because they can’t afford to pay cash for a doctor visit.
Already nearly 69,000 people have allowed their individual coverage from New Jersey’s Affordable Care Act marketplace to lapse after temporarily enhance tax subsidies expired at the end of last year. Thousands more are expected to lose Medicaid coverage next year when new requirements to stay enrolled take affect.
New Jersey’s regulatory burden
The hospital executives pleaded for state officials to reduce the red tape that makes it hard to implement programs needed to meet community needs.
“We need to be more nimble, we need to be more adaptable, we need to be more flexible,” said Aaron Chang, president of Jefferson Health NJ, which includes hospitals in Cherry Hill, Stratford, and Washington Township.
Inspira is adding a $220 million patient tower at Inspira Mullica Hill in Harrison Township, near the intersection of Routes 55 and 322. Construction is expected to be completed Oct. 1, Mansue said. “The reality is we’re not going to open until March” because it will take that long to get all the regulatory approvals, she said.
Read more Artwork at City Hall honors founders of Philly sports — and offers a preview of the Museum of Sports
Inspira operates three other hospitals in Cumberland and Salem Counties.
Raynard E. Washington, who heads the N.J. Department of Health, spoke after the panel and said Gov. Mikie Sherrill is serious about making it easier to do business in the state. She told state agencies “to limit additional regulations and to look for opportunities to streamline,” he said.
Workforce development is a top priority
Six years ago, Virtua and Rowan University started working together to create the Virtua Health College of Medicine & Life Sciences out of Rowan’s School of Osteopathic Medicine, Rowan’s School of Nursing & Health Professions, and Virtua’s Our Lady of Lourdes Nursing School, plus a new school of translational biomedical engineering and sciences.
The institution officially launched in 2022 with $85 million in support from Virtua and $125 million from Rowan and has seen its class sizes grow steadily.
“We are now training about 360 nurse graduates every year, 300 medical students,” said Jennifer Khelil, Virtua’s chief clinical officer. Virtua operates five hospitals in South Jersey.
Workforce efforts also reach into high schools, Chang said. Jefferson Cherry Hill Hospital has a relationship with Cherry Hill West High School that brings 12 to 15 interns to the hospital.
“Because of the internship, their exposure to the hospital environment, whether it’s the ancillary departments and or the clinical areas, over 95% of those individuals get a health care job as a first foray into the workforce,” Chang said.