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N.J. looks to close fee loophole utilized by Meadowlands Hospital Medical Center

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New Jersey is set to clamp down on a North Jersey hospital that insurance companies claim is billing them as much as 3,000 percent more than its own outpatient surgery centers charge for the same treatment.

Part of the plan by Gov. Chris Christie’s administration to contain rising auto insurance rates targets the business practices of Meadowlands Hospital Medical Center in Secaucus, bought in December by the owners of three surgery centers in Bergen and Essex counties.

Since then, the new owners have been referring auto accident victims from their same-day surgery center to Meadowlands to take advantage of a fee loophole, according to insurance executives and confirmed by the Department of Banking and Insurance. The state limits what same-day surgery centers may charge, but it does not regulate what hospitals may charge for most outpatient care. And at Meadowlands, that difference can be substantial insurers and state officials say.


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