Bill Text: NJ A2949 | 2026-2027 | Regular Session | Introduced
Bill Title: Amends FY2026 annual appropriations act to increase Supplemental Graduate Medical Education Subsidy by $496,000 for support to additional acute care hospital.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Failed) 2026-01-13 - Withdrawn Because Approved P.L.2025, c.219. [A2949 Detail]
Download: New_Jersey-2026-A2949-Introduced.html
STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
SYNOPSIS
Amends FY2026 annual appropriations act to increase Supplemental Graduate Medical Education Subsidy by $496,000 for support to additional acute care hospital.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Amendment to the annual appropriations act for the fiscal year ending June 30, 2026, P.L.2025, c.74.
Be It Enacted by the Senate and the General Assembly of the State of New Jersey:
1. The following items in section 1 of P.L.2025, c.74, the annual appropriations act for the fiscal year ending June 30, 2026, are amended as follows:
46 DEPARTMENT OF HEALTH
20 Physical and Mental Health
22 Health Planning and Evaluation
GRANTS-IN-AID
07-4270 Health Care Systems Analysis [$627,119,000] $627,615,000
Total Grants-in-Aid appropriation,
Health Planning and Evaluation [$627,119,000] $627,615,000
Grants-in-Aid:
07 Graduate Medical Education........ [($336,500,000)] ($336,996,000)
Notwithstanding the provisions of any law or regulation to the contrary, and except as otherwise provided and subject to such modifications as may be required by the Centers for Medicare and Medicaid Services in order to achieve any required federal approval and full Federal Financial Participation, [$34,000,000] $34,496,000 from the amounts hereinabove appropriated from Graduate Medical Education (GME) shall be designated as Supplemental Graduate Medical Education Subsidy (GME-S), and shall be available to hospitals that meet the following eligibility criteria: (a) an eligible hospital has a Relative Medicaid Percentage (RMP) that is among the top [fourteen] fifteen acute care hospitals with a residency program; (b) the RMP is a ratio calculated using the 2023 Audited Acute Care Hospital (ACH) Cost Reports; (c) the RMP numerator equals a hospital's gross revenue from patient care for Medicaid and Medicaid HMO payers as reported on Forms E5 and E6, Line 1, Column D & Column H; (d) the RMP denominator equals a hospital's gross revenue from patient care as reported on Form E4, Line 1, Column E; (e) for instances where hospitals that have a single Medicaid identification number submit a separate ACH Cost Report for each individually licensed hospital, the ACH Cost Report data for those hospitals shall be consolidated to the single Medicaid identification number; (f) the GME-S Subsidy shall be calculated using the same methodology as the GME Subsidy is calculated in this act, except the total amount of the GME-S Subsidy payments shall not exceed $34,000,000 for the first fourteen ranking hospitals under this paragraph, in order of highest to lowest RMP, and the GME-S Subsidy payment shall be $496,000 for the fifteenth ranking hospital under this paragraph, in order of highest to lowest RMP.
2. This act shall take effect immediately.
STATEMENT
This bill amends the FY2026 annual appropriations act to increase the Supplemental Graduate Medical Education Subsidy by $496,000 and to provide those funds to an additional acute care hospital. Currently, the Supplemental Graduate Medical Education Subsidy is available to the 14 safety net hospitals with a residency program that derive the highest percentage of total revenues from services provided to Medicaid enrollees. Under the bill, this subsidy would expand to include a 15th hospital, which hospital would receive $496,000. The amount of the FY2026 Supplemental Graduate Medical Education Subsidy payments to the existing 14 hospitals would not change under this bill.
The sponsor's goal is to implement the legislative intent of P.L.2018, c.116 (C.26:2H-18.57), first executed in FY2019, which provides that the Supplemental Graduate Education Subsidy is to be allocated among hospitals with a Relative Medicaid Percentage in the top third of all acute care hospitals with a residency program. In FY2019, 14 hospitals were eligible for a subsidy, or one-third of the 44 hospitals with residency programs in the State. Since FY2020, language included in the annual appropriations act has overridden this statutory provision and limited the subsidy to 14 hospitals. However, in 2023, the number of acute care hospitals with residency programs increased to 45, resulting in 15 hospitals being eligible for the subsidy under the statute. This bill modifies the FY2026 annual appropriations act to align the relevant appropriations language with the provisions found in the underlying Supplemental Graduate Education Subsidy law.
