New Jersey’s Department of Health and Department of Human Services announced that the federal government has approved about $540 million in funding to help hospitals provide care for uninsured residents and improve outpatient services for Medicaid patients.
The funding, set for State Fiscal Year 2026, comes from the Medicaid State-Directed Outpatient Payment Program. It is designed to support hospitals that serve large numbers of low-income patients and communities with greater health needs.
“Every person in New Jersey deserves access to healthcare, regardless of their ability to pay,” said Acting Health Commissioner Jeff Brown. “With this investment, we are supporting frontline hospitals and ensuring our communities can rely on strong and stable health services.”
“The access to high-quality outpatient and hospital care is essential for the well-being of the people and families we serve,” said Human Services Commissioner Sarah Adelman. “These investments strengthen our safety net, support providers who serve Medicaid and uninsured patients, and help ensure New Jersey’s most vulnerable communities can get the care they need to lead healthy, stable lives.”
Under the program, all acute care hospitals in New Jersey must provide Charity Care—covering essential treatments for those unable to pay. In Fiscal Year 2026, every hospital offering charity care will receive some level of funding. Hospitals serving more uninsured patients will get additional support.
Hospitals located in counties with lower life expectancy rates, those facing financial challenges, or serving low-income municipalities will also benefit from targeted support under the Medicaid State-Directed Outpatient Payment Program.
Public hospitals will see increased payments raising Medicaid reimbursement rates up to levels paid by commercial insurers. This approach aims to ensure significant financial aid reaches facilities providing vital services in New Jersey’s most vulnerable communities.
By strengthening resources for hospitals delivering quality care across the state, these grant programs reflect a broader effort by New Jersey officials to reinforce its healthcare safety net and better serve disadvantaged residents.
