Proposed federal cuts to Medicare and Medicaid could significantly impact New Jersey's healthcare industry, according to testimony presented by Althea D. Ford, Vice President of Government Affairs at the New Jersey Business & Industry Association (NJBIA). Speaking before the Assembly Health Committee, Ford emphasized that these cutbacks would not only affect patients and caregivers but also have economic repercussions for healthcare job creators in one of the state's largest industries.
Ford highlighted the importance of the healthcare sector, noting its contribution to 8.6% of New Jersey's gross domestic product. She referenced a report from the New Jersey Council of County Colleges’ Pathways to Career Opportunities initiative, prepared with Focus NJ, which shows a 35% growth in healthcare businesses since 2020.
"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 stated.
She warned that federal funding reductions could hinder healthcare providers' ability to deliver essential services, potentially leading to facility closures and diminishing the presence of healthcare providers within communities. This situation could result in unemployment or underemployment for healthcare personnel, further affecting other professionals who support facility operations.
"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," Ford explained. Additionally, she noted that increased unemployment could reduce state income tax revenues.
The current worker shortages in the healthcare sector would be exacerbated by federal funding cuts, 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," she told the committee.
For those interested in reading Ford’s complete testimony, it is available online.
