Advocates slam plan for opioid funds
Lawmakers seek to send $45M to four hospitals
By: Scott Fallon
NorthJersey.com
USA Today Network - New Jersey
..... A last-minute plan by the Legisture to move $45 million in opioid settlement funds to four hospitals prompted criticism from the attorney general and drug counselors, who say the money should be going directly to groups that treat drug and alcohol users.
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The diversion came as the Legislature was set to vote on the $58.8 billion budget on June 30 [2025] - the deadline for passage.
..... Drug councilors said they learned of the $45 million diversion over the weekend [06/28-29/2025] form a budget line item that had no explanation as to what the hospitals could use the money for. They said 415 million would go to RWJBarabas Health, $15 million to Copper University Hospital, $10 million to Hackensack University Medical Cent and $5 million to Atlantic Health System.
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A spokeswoman for Assembly Democrats - whose party controls both houses - declined to comment. A spokesperson for the Senate Democrats did not immediately respond to a request for comment.
..... Attorney General Mathew Platkin, whose office has joined lawsuits against opioid manufacturers , said in a statement on June 30 [2025] that the planed move was a "great disappointment" and likened to using tobacco settlements for decades past of programs other than anti-smoking initiatives.
..... "When we announced thee settlements, I stood with Governor Murphy and promised these settlement dollars would go towards evidence-based solutions to help those struggling with opioid addiction - not to pad the state's coffers," he said. "We were fully mindful of not repeating the mistake made with the state's tobacco settlement funds, which should have been used exclusively to address damage caused by cigarettes."
...... New Jersey Hospital Association CEO Cathy Bennett said her members are on the "front line of the opioid crisis" offering treatment, recovery, prevention, medication, mobile clinics, Narcan distribution, and specialized programs for high-risk populations like pregnant women and adolescents.
..... "New Jersey hospitals are working with community-based organizations to provide lifesaving assistance on a daily bases to tens of thousands of patients struggling with opioid addiction," Bennett said in a statement.
..... But advocates, who planned to pretest at the Statehouse in advance of the budget vote scheduled at 11 AM., said moving the money to large hospitals will likely force smaller nonprofit groups to lay off staff and reduce services to drug users.
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"We're talking about literal blood money from the drug companies that profited from the overdose crisis, and they're stealing it," said Jenna Mellor, executive director of the New Jersey Harm Reduction Coalition in New Brunswick. "this settlement was never meant to be a slush fund or got to big hospital systems with no strings attached."
..... Suspected overdose deaths dropped to 1,813 last year [2024] in New Jersey after hitting an all-time high of 3,144 in 2021.
..... New Jersey has been awarded about $1.3 billion in settlements with opioid manufacturers that will be paid out through 2038.
..... The New Jersey Opioid Recovery and Remediation Advisory Council made recommendations this year [2025] as to where the money should go.
..... "Hospitals were not part of this," said Mellor, who was a member of the council. "The money was supposed to go to groups that specialize in harm reduction services."
..... New Jersey hospitals are bracing for a significant decrease in revenue due to the budget bill in Washington, which will likely cut significant funding for Medicaid and the Affordable Care Act.
..... Mellor and others said their sympathy for large hospital networks goes only so far when their executives are paid millions of dollars each year.
..... "We have outreach teams out here saying lives on a shoestring budget," said Bre Azanedo, program manager at the BLM Paterson Harm Reduction Center "We should be funding the people and organization on the front lines. The hospitals don't need the money."