New Jersey hospitals are facing unprecedented financial pressures. Managed care and advances in medical technology have dramatically shortened and — in many cases — eliminated inpatient hospital stays.

Cutbacks in Medicare and Medicaid reimbursements have significantly reduced hospital revenues. In addition, the recent failures of New Jersey HIP and American Preferred Provider plans have resulted in potential losses to New Jersey hospitals in excess of $100 million. Since all hospitals in New Jersey are nonprofit institutions, the ultimate responsibility for responding to these increasing financial pressures rests with the hospital’s board of trustees.