New Jersey Department of Health and Department of Human Services Expand Access to Hospital Care and Outpatient Services for State’s Most Vulnerable Residents

Dec. 16, 2025

(TRENTON) - The New Jersey Department of Health (NJDOH) and the New Jersey Department of Human Services (NJDHS) today announced that the federal government has approved approximately $540 million in funding to help hospitals care for uninsured residents and to improve outpatient services for Medicaid patients.

This major investment, planned for State Fiscal Year 2026 (SFY2026), strengthens New Jersey's commitment to ensure that every patient, regardless of income or insurance status, can access essential health care services.

The funding comes through the Medicaid Outpatient State-Directed Payment Program and supports hospitals that serve large numbers of low-income patients and communities with the greatest health needs.

"Every New Jerseyan deserves access to health care, regardless of their ability to pay," said Acting Health Commissioner Jeff Brown. "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."

"Access to high-quality outpatient and hospital care is essential for the well-being of the individuals and families we serve," said Human Services Commissioner Sarah Adelman. "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 Medicaid Outpatient State-Directed Payment Program rewards hospitals for delivering high-quality outpatient care to Medicaid and charity care patients. Therefore, there will be more support for hospitals serving Medicaid patients, including private hospitals that will receive additional payments based on how much of their work is dedicated to Medicaid and Charity Care patients. Key components of the model for FY2026 include:

· Strengthening Care for Uninsured Patients

All acute care hospitals in New Jersey are required to provide Charity Care, which covers essential treatment for people who cannot afford to pay. In SFY2026, every hospital that provides charity care will receive some funding. Hospitals that care for larger numbers of uninsured patients will receive additional funding.

· Funding for Communities in Need

The Medicaid State-Directed Outpatient Payment Program provides support to hospitals located in counties with the lowest life expectancy, financially distressed hospitals, and hospitals serving low-income municipalities.

· Stronger Support for Public Hospitals

Public hospitals will receive higher payments that bring Medicaid reimbursement up to the level paid by commercial insurers. This approach ensures that hospitals will receive meaningful financial help to assist them in providing health services to the most vulnerable communities in New Jersey.

Through bolstering resources for hospitals that provide quality care across the state, the hospital subsidy programs reflect New Jersey's broader effort to strengthen its health care safety net and support care for underserved residents.