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Hospital Redistribution

June 28, 2013

As the NJ State Legislature approached its summer recess this week, a controversial bill, which would allow local municipalities to tax its hospitals, was temporarily put on hold.  The “Local Hospital Fee Pilot Program Act” (S2466/A4092) would allow local governments to use such tax dollars to apply for greater federal Medicaid grants while additionally using 20% of its revenue for other purposes they find “necessary”.

This process essentially gives bureaucrats the authority to redistribute wealth among hospitals as they please. This act lacks transparency and does not clearly define distribution guidelines. Such a tax would be detrimental to the quality and availability of care in hospitals already threatened by the new healthcare reform. Not only will hospital care be at risk, but local markets that depend on these strong hospitals will experience major setbacks in the already struggling job market and economy.

With the Legislature likely to revisit this issue in the Fall, be sure to voice your displeasure with this latest example of big government and unfair wealth distribution.  Send a message to your representatives in Trenton to oppose yet another attempt by the left to create unnecessary taxes on New Jerseyans.

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