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Witnesses tell Health Committee low Medicaid rates threaten North Jersey pediatric nursing facility
Summary
An administrator for Phoenix Center for Rehabilitation and Pediatrics told the Assembly Health Committee that an apparent historical error in Medicaid reimbursement has left the 101-bed pediatric facility underpaid compared with other New Jersey pediatric centers, risking sustainability unless corrected.
Natasha Islam, administrator at the Phoenix Center for Rehabilitation and Pediatrics in Haskell, told the Assembly Health Committee she is seeking a correction to New Jersey Medicaid reimbursement rates that she said were set incorrectly by prior owners.
Islam said the Phoenix Center is one of three pediatric skilled nursing facilities in the state and the only one in North Jersey. She said owners have invested roughly $1,000,000 of private equity to upgrade ventilators, alarms, therapy equipment and on-site specialty clinics so children can receive respiratory, neurology and other consultations without leaving the facility. Islam said the facility serves immunocompromised children from about 1 month to 21 years of age.
The core request is that A.2940 correct a lower reimbursement rate Islam described as “an error” so the facility receives parity with the other pediatric centers. Islam told the committee that the correction would not create new funding but would pay money “owed” to children treated historically at the Phoenix Center; she warned that, without the change, owners may not be able to sustain enhanced services.
Committee leadership called for a motion after testimony and the bill was released from committee by roll call. The transcript records multiple members voting "Yes" on the motion to release the bill. The committee did not record follow-up instructions to staff in the hearing.
The committee meeting provided no additional fiscal analysis on the record and did not include an immediate Department of Health response during the hearing. Next steps typically include further committee action or placement on an Assembly floor calendar.
