Proposed federal cuts affecting Medicare and Medicaid would not only harm New Jersey patients and caregivers, cutbacks would also have a significant economic impact on healthcare job creators in one of the state's largest industries employing tens of thousands of workers.
That was the message NJBIA Vice President of Government Affairs Althea D. Ford delivered Tuesday in her testimony to the Assembly Health Committee, which held a special hearing with invited stakeholders about the impact proposed federal policy changes in Medicaid and Medicare would have on New Jersey residents and the state's economy.
“From hospital systems to nursing homes and home- and community-based service providers, we believe that funding cuts to Medicaid and Medicare will have a significant impact on job creators in the healthcare sector – a vital contributor to New Jersey’s economy,” Ford said.
According to a recent report that the New Jersey Council of County Colleges’ Pathways to Career Opportunities initiative prepared in partnership with Focus NJ, the healthcare and social services sector accounts for 8.6% of New Jersey’s gross domestic product and is one of the state’s five largest industries, Ford said. The number of businesses in this sector has grown by 35% since 2020.
“Federal funding cuts will negatively impact the ability of healthcare providers to provide the critical services needed in their communities,” Ford said. “This disconnect will result in the closure of facilities and reduce the healthcare provider footprint within communities.”
The unemployment or underemployment of healthcare personnel due to facility closures and service cuts will also harm the state’s economy, Ford said. The ripple effect of these closures would go beyond the healthcare workers themselves to other professionals that support healthcare facility operations, such as maintenance workers and dietitians. Additionally, a rise in unemployment and underemployment will impact state income tax revenues.
The healthcare sector is already plagued by worker shortages and federal funding cuts would only exacerbate the situation, Ford pointed out. “With fiscal constraints, providers will need to triage delivery of services, which creates significant access concerns for all New Jersey residents, particularly the most vulnerable,” Ford told the committee.
To read Ford’s entire testimony, go here.
