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Board advances hospital fee ordinance and approves insurance renewals for county facilities

Essex County Board of County Commissioners · June 13, 2025
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Summary

Commissioners introduced an ordinance to expand a 2021 hospital fee program statewide (authorizing a maximum 5% fee on net hospital revenues) and approved several insurance renewals covering liability, workers' compensation and commercial property increases tied to added assets.

The board moved forward an ordinance amending the county's 2021 hospital fee pilot to allow the program to expand statewide and to authorize the state to assess a maximum fee equal to 5% of net hospital revenues; the change is intended to increase funding that flows to county hospitals and the county as an administrative fee.

Frank Delgaudio, director of Health and Rehabilitation, said the amendment would move the program from a pilot to a broader eligibility structure and increase funding to Essex County hospitals. He described a package of insurance renewals (items 58–62): an increase in excess liability limits to $10 million in excess of the $1 million layer (an additional $3 million, attained for an incremental premium), a workers' compensation renewal reflecting increased loss experience (increase of about $31,318), a modest increase to the after-the-sale policy (about $2,500), professional liability (medical malpractice for the hospital center) with a small increase, and a commercial property Insurance rise tied to adding over $180 million in values (including a new family courts building), which produced a larger premium increase (~$93,000) but reflected much higher insured values.

Commissioners asked clarifying questions about the pool of county hospitals affected and premium impacts. The ordinance introduction and the insurance renewal items were moved and approved for introduction or renewal as required by procedure; detailed contract documents and final premium breakdowns were available in the clerk's record for review.