County moves to expand hospital fee program eligibility; approves several insurance renewals for county hospitals

Essex County commissioners introduced an ordinance to amend the 2021 hospital fee program to extend eligibility beyond the pilot to all county hospitals and approved a set of insurance renewals and related hospital agreements.

Frank Delgaudio, director of the Department of Health and Rehabilitation, told the board the amendment would broaden the hospital fee program passed in 2021 and allow the state to assess a maximum fee of 5% of net hospital revenues while increasing the program’s funding. "This ordinance is requesting an amendment to the original ordinance that was passed back in 2021 regarding the hospital fee program," Delgaudio said. The amendment would roll the pilot out so every hospital in the state becomes eligible under the program and would permit the state assessment at up to 5% of net hospital revenues.

The board also took grouped action on insurance renewals affecting county operations and the Essex County Hospital Center. Risk manager Frank Delgario explained several renewals and increases: the county’s excess general liability, automobile liability and law enforcement liability coverage was renewed with total coverage up to $10,000,000 in excess of the county’s $1,000,000 retention; the excess workers’ compensation renewal showed an increase of $31,318 due to pandemic-era claims; the active-assailant policy renewal increased by about $2,500; professional liability (medical malpractice for the hospital center) had a small increase of about $5,000; and the county’s commercial property insurance rose by about $93,000 reflecting addition of properties and an overall increase in insured values (staff said the Winona Lippman Family Courts building and park improvements added roughly $180,000,000–$200,000,000 in values to the county’s portfolio).

County staff also presented a nursing-affiliation agreement with Felician College intended to resume psychiatric rotations at the Essex County Hospital Center after a COVID-era hiatus; the board approved that affiliation as part of the health department matters.

Commissioners approved the ordinance for introduction (first reading) and approved the set of insurance renewals and the affiliation agreement by roll call in grouped votes. Staff said the ordinance and renewals will be read into the record at a later meeting for final readings where required.