New Jersey secures $540M in federal funds to expand hospital, outpatient care for uninsured and Medicaid patients
TRENTON, N.J. — The New Jersey Department of Health and the Department of Human Services announced Thursday that the federal government has approved approximately $540 million in funding to support hospital care for uninsured residents and improve outpatient services for Medicaid patients.
The funding, planned for State Fiscal Year 2026, will be distributed through the Medicaid Outpatient State-Directed Payment Program and is intended to support hospitals that serve large numbers of low-income and uninsured patients, as well as communities with significant health care needs.
State officials said the investment is designed to help ensure access to essential health care services regardless of income or insurance status.
“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.”
Human Services Commissioner Sarah Adelman said the funding will strengthen care for vulnerable residents and the providers who serve them.
“Access to high-quality outpatient and hospital care is essential for the well-being of the individuals and families we serve,” Adelman said. “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.”
Under the program, hospitals are incentivized to deliver high-quality outpatient care to Medicaid and charity care patients. Officials said all acute care hospitals in the state are required to provide charity care, which covers essential treatment for patients unable to pay. In fiscal year 2026, each hospital providing charity care will receive funding, with additional support directed to facilities serving higher numbers of uninsured patients.
The program also includes targeted funding for hospitals located in counties with the lowest life expectancy, financially distressed hospitals and those serving low-income municipalities.
Public hospitals will receive higher payments intended to bring Medicaid reimbursement closer to the rates paid by commercial insurers, state officials said. The approach is aimed at providing additional financial stability for hospitals serving some of the state’s most vulnerable populations.
Officials said the funding reflects broader efforts to strengthen New Jersey’s health care safety net and support hospitals delivering care to underserved residents across the state.
