Pallone, Hospital Leaders Warn of Catastrophic Consequences of Republican Medicaid Cuts at Saint Peter’s “Save Our Hospitals” Event

New Brunswick, NJ – Congressman Frank Pallone, Jr. (NJ-06) was joined today by hospital leaders, physicians, patients, and health care advocates at Saint Peter’s University Hospital to warn that the Republican budget reconciliation bill slashes more than a trillion dollars from Medicaid and the Affordable Care Act over the next decade, which would devastate New Jersey’s safety-net hospitals and take health care away from hundreds of thousands of residents. This is the largest cut to Americans’ health care in history.  

Speaking at a press conference, Pallone detailed how Trump’s Big Ugly Bill, which passed the House last month, would eliminate coverage for at least 360,000 New Jerseyans, and strip up to $3.6 billion a year from the state’s Medicaid program known as NJ FamilyCare. The cuts in the Republican bill would also slash an estimated $300 million in payments to New Jersey hospitals and other health care providers, forcing safety-net providers like Saint Peter’s to face catastrophic financial losses, reduce services, or close programs entirely.

“Let’s be very clear: these cuts are not theoretical. They are real, they are dangerous, and they will directly harm patients,” Pallone said. “NJ FamilyCare covers nearly 1.8 million New Jerseyans, including 60 percent of those living in nursing home and 40 percent of all births statewide. If Republicans get their way, hospitals like Saint Peter’s will be forced to cut back services, lay off staff, or shutter programs entirely.”

“The House Republican bill would slash Medicaid funding by hundreds of billions of dollars—cuts that would have devastating effects on our most vulnerable populations,” said Leslie D. Hirsch, FACHE, president and CEO of Saint Peter’s Healthcare System, who also serves on the American Hospital Association Board of Trustees and as chair of its Regional Policy Board 2 for New Jersey, New York, and Pennsylvania. “At Saint Peter’s, we are committed to a Catholic mission of humble service, especially to those most in need. Medicaid is not a luxury, it’s a lifeline. Cuts to Medicaid could strip millions of individuals of access to even the most basic care. When people lose access to primary care, they turn to emergency departments, chronic conditions go untreated, health outcomes worsen, and tragically, preventable deaths increase. While we all agree that eliminating fraud, waste and abuse is important, gutting Medicaid is not the answer. These cuts could force painful decisions that would be felt immediately in the communities we serve.”

“Any cuts to Medicaid would be devastating not only for patients, but also for the hospitals and health care providers who rely on this funding to keep their doors open,” said New Jersey Citizen Action Healthcare Program Director, Laura Waddell. “In New Jersey, these proposed cuts would slash $300 million in federal funding to our hospitals, cap $3.4 billion in Medicaid reimbursements through provider taxes, and lead to a significant rise in charity care cases.  The window of opportunity is closings to stop these cuts and we need all of our New Jersey federal delegation from both sides of the aisle, to join Congressman Pallone in standing up for the patients and health care consumers in our state and vote 'no' to any cuts to health care."

“The impact of any cuts to Medicaid funding for our 1.8million citizens would be devastating to the most vulnerable amongst us, children, working families, the elderly, people with disabilities. and those of lower incomes. These cuts are deeply alarming and completely unacceptable. I remain committed to working with our congressional delegation to do everything possible to ensure the well being of all our citizens and to protect this important program, “ Assemblyman Danielsen. 

“The cuts to Medicaid will have grave consequences to our New Jersey residents-whether they are children, low-income adults, disabled individuals, and elderly residents,” said Assemblyman Egan (D-Middlesex, Somerset). “Hospitals, like Robert Wood Johnson Barnabas and Saint Peter’s University Hospital, may face major financial losses.  Many New Jersey residents will not receive the care they need from the hospitals they rely on, which could lead to needless deaths.  We need to work together to ensure that this does not happen, and I thank Congressman Pallone for fighting the good fight for New Jersey.”

Saint Peter’s University Hospital faces potential losses of tens of millions of dollars annually if the Republican cuts are enacted. Health care leaders warned that the magnitude of the proposed cuts would force hospitals across New Jersey to reduce critical services such as maternity care, cancer treatment, mental health programs, and emergency care.

The Republican Big Ugly Bill cuts funding to hospitals by limiting the payments that state Medicaid programs can make to hospitals, long-term care providers, and many other cash-strapped providers so they can stay in business and provide the services residents need. The Republican bill also cuts off a state’s ability to generate the funds they need to support their Medicaid programs—including payments to struggling hospitals—through a provider tax. 

On Monday, Senate Republicans unveiled their bill that would even further reduce a state’s ability to generate these funds and cut provider payments–meaning even more devastating cuts for New Jersey and its hospitals. The House and Senate bill both prohibit new or increased provider taxes and prevent states from making certain new payments to providers, while the Senate bill also slashes the provider taxes and payments that states like New Jersey already have in place.

Joining Pallone at the event were Garrick Stoldt, CFO of Saint Peter’s; Jim Choma, Vice President for Catholic Mission; Dr. Mariela Kapoor, Internal Medicine Physician at Saint Peter’s Family Health Center; Christine Stearns, Chief Government Relations Officer for the New Jersey Hospital Association; representatives from New Jersey Citizen Action; and local elected officials. A former patient of Saint Peter’s also spoke about how critical Medicaid coverage was to receiving care during a serious medical emergency.

Pallone, who serves as top Democrat on the House Energy and Commerce Committee, has led Democratic opposition to the Republican Medicaid cuts in Congress. The House passed the Republican bill last month and now it is up for consideration in the Senate.