President of Meadowlands Hospital Defends Outpatient Billing Practices to New Jersey Senate Committee

The president of Meadowlands Hospital Medical Center in Secaucus, N.J., acknowledged Monday that the hospital charges more than its competitors to provide outpatient care to auto accident victims, but said auto insurers only pay a fraction of the charges, according to a Jersey Journal report.

The New Jersey Senate Health, Human Services and Senior Citizens Committee asked President and CEO Tom Gregorio to explain why the hospital charges 1,000-3,000 percent more than competing hospitals for outpatient procedures such as knee arthroscopies and steroid back injections.

Mr. Gregorio said the hospital receives on average 7 percent of what they bill to treat auto accident victims in their outpatient surgery centers. He said the charges from the hospital do not reflect the eventual payment.

The Insurance Council of New Jersey responded to Mr. Gregorio's comments by supplying billing data. According to the repot, Meadowlands receives far higher than the 7 percent estimated by Mr. Gregorio. The Insurance Council said the hospital is also generating significant revenue by performing same-day procedures on accident victims, getting referrals from the three surgery centers owned and operated by the hospital owners.

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