The New Jersey Department of Health and the New Jersey Department of Human Services have announced that the federal government has approved about $540 million in funding to support hospitals serving uninsured residents and to enhance outpatient services for Medicaid patients. The investment is planned for State Fiscal Year 2026.
This funding will be distributed through the Medicaid Outpatient State-Directed Payment Program, which aims to assist hospitals that care for a high number of low-income individuals and those in communities with significant health needs.
Acting Health Commissioner Jeff Brown stated, “Every New Jerseyan deserves access to health care, regardless of their ability to pay. With this investment, we are supporting hospitals that serve on the front lines and ensure that our communities can rely on strong, stable health care services.”
Human Services Commissioner Sarah Adelman added, “Access to high-quality outpatient and hospital care is essential for the well-being of the individuals and families we serve. These investments strengthen our safety net, support the providers who care for Medicaid and uninsured patients, and help ensure that New Jersey’s most vulnerable communities can rely on the care they need to live healthy, stable lives.”
The program rewards hospitals for providing quality outpatient care to Medicaid recipients and charity care patients. Private hospitals will receive additional payments based on how much of their work involves these groups.
All acute care hospitals in New Jersey must provide Charity Care coverage for those unable to pay. In FY2026, every hospital offering charity care will receive some level of funding, with extra funds going to those serving more uninsured patients.
Hospitals located in counties with lower life expectancy rates or facing financial distress will also benefit from targeted support under this initiative. Public hospitals are set to receive increased payments so that Medicaid reimbursement matches what commercial insurers pay.
These measures reflect ongoing efforts by state agencies to reinforce healthcare resources across New Jersey’s safety net system.
