Dr. Kaitlan Baston, commissioner of the New Jersey Department of Health (DOH), presented the department’s proposed budget before the legislature. Prioritizing critical areas of growth, stabilization of key programs to fight illness, and modernization, the FY 2025 DOH budget totals $1.336 billion. The commissioner stressed the department’s role in leading the response to critical areas facing health and healthcare.
Ensuring Emergency Preparedness: The commissioner reaffirmed the importance of solidifying lessons from the COVID-19 pandemic and implementing effective policies for better preparedness. Due to federal Centers for Disease Control and Prevention grant funding, the department plans to modernize its data centers and information exchange technologies to allow quicker dissemination of information and streamlined stockpiling of personal protective equipment and medical supplies. The proposed budget includes $1 million to expand the chief state medical examiner’s office and invest in local public health infrastructure.
Supporting Healthcare Delivery Systems for Vulnerable Populations: With a focus on long-term care, care in state psychiatric hospitals, and care for the under- or uninsured, the commissioner announced the hiring of a special adviser to the commissioner for long-term care and plans to undertake a landscape analysis of long-term care facilities struggling with financial issues, quality concerns, or potential fraud. The department’s proposed budget includes:
- $4.5 million for a new Long-Term Care Crisis Operations Team and a stabilization fund to be used for emergent financial support during a crisis
- $550,000 for the department’s expansion of its Mission Critical teams, which provide on-the-ground assistance and support for long-term care facilities
- Stable funding for the department’s Infection Control Assessment Response teams
As part of the department’s modernization approach, Commissioner Baston also announced technological enhancements to improve quality of care and provide transparency.
Direct Subsidies to Hospitals: The FY 2025 budget proposes a total of $683.7 million in direct subsidies to hospitals. To increase direct hospital subsidies, Governor Phil Murphy proposes shifting a portion of Charity Care to a new Medicaid supplemental state-directed payment. This increases total funding to hospitals by maximizing federal matching funds without a need for state appropriations. Details of the distribution and the formula supporting the distribution remain unclear, as plans are subject to federal approval.
Refocusing on Critical Population Health Issues: The commissioner emphasized the importance of prioritizing maternal-child health and addiction and mental health services. To improve access to medications and to target reductions in disparities, the department is investing in the MATTERS Network, a statewide program linking individuals to immediate access to treatment, harm reduction, transportation, and medication vouchers. The department is also prioritizing mental healthcare by:
- Establishing and expanding telehealth for vulnerable and underserved youth through the Pediatric Mental Health Care Access Program;
- Including $307,000 to support a dedicated quality regulatory team for the state’s psychiatric hospitals; and
- Proposing $540,000 for the department’s Health Systems branch to review, license, and survey the integrated programs across the state
Commissioner Baston also focused on improving equity and outcomes for all New Jersey families through:
- Modernizing the New Jersey Women, Infants, and Children (WIC) program; and
- Proposing $2.9 million to cover WIC grocery delivery fees to further remove barriers to healthy eating.
The department’s recommendations stress that public health is more than just disease management—it is about keeping people well. Modernizing the DOH means creating public health programs that empower individuals and local communities and use innovative solutions to help solve problems. Please contact a member of the McCarter Government Affairs team with any questions or to learn more about the department’s proposals.