New Jersey Hospital Association CEO Cathy Bennett was thrilled to see a cost
benchmark report by the N.J. Department of Health gave a favorable view of the
hospital costs in the state.
The HART reports (Health Care Affordability, Responsibility and Transparency) showed
that the total health care expenditures are consistent with inflation as reflected in the
Consumer Price Index. It also said New Jersey’s overall cost growth was lower than the
majority of other states that have established benchmark programs.
The reports analyzed two periods: Transition Year (2021-22) and Performance Year
(2022-23). Together, they reveal that cost increases are happening system-wide across
all insurance markets, service categories, and nearly all insurance carriers and health
care providers.
“The HART reports show that New Jersey is experiencing inflation-driven cost growth
while continuing to deliver high-quality care and performing better than many peer
states,” she said. “The findings reinforce the need for a measured, systemwide
approach to healthcare affordability.”
Bennett said New Jersey’s 6.1% growth in health care spending in 2023 is lower than
most other states that are benchmarking healthcare costs. It’s also identical to the
increase in New Jersey’s Consumer Price Index in 2022, which is a key indicator of
rising inflation.
Bennett noted that New Jersey hospitals exist in one of the highest cost-of-living states
in the country yet still deliver high-quality care. New Jersey hospitals were ranked third
best in the nation for patient safety in 2025, according to the nationally recognized
LeapFrog group, which benchmarks state-by-state hospital quality of care at a national
level.
“Health care is a complicated ecosphere,” Bennett said. “Hospitals represent only about
40% of health care costs, yet they are the sole focus of this exercise. That narrow view
penalizes hospitals for system-wide cost pressures beyond their control, including
soaring drug prices, insurance red tape, inflation, workforce shortages and caring for an
older, sicker population. Ignoring these cost drivers undermines the entire affordability
effort.
“NJHA and our hospitals remain committed to an affordability process that works. New
Jerseyans deserve accurate data, shared accountability and a comprehensive approach
to cost drivers – because patients and families cannot afford for us to get this wrong.”
Acting Health Commissioner Jeff Brown also applauded the findings.
“We know that health care costs strain New Jersey families,” he said. “Addressing
affordability requires each part of the health care system to examine its role and take
meaningful action to make health care affordable in our state.”
