A study from the New Jersey Hospital Association released on December 4, 2006 reported that nearly 40% of New Jersey’s hospitals posted a financial loss in the year 2005. It was predicted that that number would grow unless major changes were made in charity care funding and payments from other important participants, and with the major increase in nursing home patients being sent to hospitals, this has become a major concern. Adding to this problem is the issue with health insurance companies not fully compensating hospitals. While these insurance carriers were making record profits, much of the cause for this lies at the expense of the hospitals and ultimately the patients. Ultimately, these changes will inevitably negatively impact upon the many nursing home residents who rely upon quality acute care centers on a regular basis.