Cumberland County adopts ordinance to continue, expand county hospital-fee program; county to retain 9%

The Cumberland County Board of Commissioners on a roll-call vote adopted Ordinance 2025-2 on final reading to continue and expand the New Jersey county option hospital fee program for Cumberland County.

The ordinance, described by staff as an amendment to prior county ordinances, continues the county's participation in the state-authorized program that shifts a portion of hospital-related fees into Medicaid financing. County officials said the county treasurer will retain 9 percent of program proceeds; according to county staff, the county is scheduled to receive about $1,900,000 from the program this year and in 2025.

The program matters because state rules require a large share of proceeds to be used as the non-federal share of Medicaid (New Jersey FamilyCare) payments. The ordinance cites compliance with NJSA 48:2-17 and amends earlier county ordinances (Ordinance 2023-2 and Ordinance 2024-4) to authorize the continuation and expansion of the county option hospital fee program.

Public comment at the hearing came from Nancy Ridgeway of Upper Deerfield and Fairfield townships. Ridgeway said she opposed the program as she has in prior years and asked how much of the fee goes to the state and how much remains with the county. "I don't agree with this. It's been going on for several years now, and I don't agree with it. But there was something in here that, the state gets, like, 7 or 8%," Ridgeway said, and added she had previously understood the county might receive "almost a million dollars a year" from the program.

County staff clarified in the meeting that the state receives the majority of proceeds (staff recited the statutory distribution), and the county retains 9 percent. Commissioners and staff also noted that the county hires a consultant to administer the program; that consultant receives a fee tied to the program take.

One commissioner urged holding the county's share as leverage to press hospital systems and municipal partners (mayors) to engage on related emergency medical system issues and to come to the table with concrete proposals; that commissioner said the county's funds could be used to encourage negotiations. The meeting record shows some commissioners supported the ordinance while one commissioner abstained from the final adoption vote.

The ordinance was read by title, opened to public comment and then finally adopted on a roll-call vote. The record shows Commissioner Alstino, Commissioner Lodes and Commissioner Taylor voted yes; Deputy Director Marshon and Director Sorrow voted yes; Commissioner Albrecht recorded an abstention.

The ordinance text also states the county treasurer will transfer 91 percent of proceeds to the state (to cover state administrative costs and the non-federal share of Medicaid/New Jersey FamilyCare payments) and retain 9 percent for county use. The ordinance references the state statutory authority for the county option hospital fee program and supplements prior county ordinances that first authorized the county's participation.

County staff indicated a third party (a consultant retained through a competitive process) performs much of the program administration and receives a contract fee; the county will continue to use that vendor under the ordinance.

The board did not set program-level distribution details during the meeting beyond the 91%/9% split required by the ordinance and state practice. Commissioners indicated they will pursue further discussions with municipalities and hospital systems about how the county share might be used alongside other local actions.

Votes at the meeting complete the adoption process; implementation details and consultant arrangements remain matters for county staff and subsequent administrative action.