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NEW JERSEY HOSPITAL ASSOCIATION EXECUTIVE VICE PRESIDENT ISSUES STATEMENT

 PRINCETON, N.J., July 1 /PRNewswire/ -- The following statement was issued today by Ralph A. Dean, executive vice president of the 100-member New Jersey Hospital Association, regarding the federal government's decision to recommend against creation of a new metropolitan statistical area, saying it will cost New Jersey hospitals $200 million in added Medicare dollars:
 "We're greatly disappointed in a decision that will cost New Jersey hospitals what would have been an added $200 million in Medicare reimbursement. The situation was not unexpected, however, because of the political nature of the process. Particularly disturbing is the lack of any specific evidence given as to why the decision was made. New York sailed through with the ruling in its favor, period: no reason, no logic, no explanation. This decision is particularly frustrating in wake of the huge Congressional and governmental support on this side of the river for the new MSA.
 "We'll begin to move tomorrow, under the Freedom of Information Act, to seek the release of all the details that led to this dramatic reversal by the Office of Management and Budget. We're also discussing other alternatives.
 "This MSA skirmish may go down as a `loss' with this decision, but the war for adequate and equitable Medicare reimbursement for New Jersey hospitals will now heat up; we'll make sure of that in the weeks ahead. New Jersey's senior citizens will now begin to question why Medicare's reimbursement policies reward expensive treatment states like New York with profits, and penalize more efficient states like New Jersey with losses. On average, having New Jersey hospitals get 87 cents of Medicare reimbursement for every dollar spent on a Medicare patient's care is unacceptable. Knowing the will of our senior citizens, I'm sure Medicare will soon have to step up to the plate and justify the way it pays hospitals nationwide."
 /delval/
 -0- 7/1/93
 /CONTACT: Ron Czajkowski of the NJHA Communications Department, 609-275-4071/


CO: New Jersey Hospital Association ST: New Jersey IN: HEA SU:

CC-JM -- PH039 -- 7948 07/01/93 17:06 EDT
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Publication:PR Newswire
Date:Jul 1, 1993
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