ASSEMBLY, No. 479

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman VANDERVALK

An Act concerning the certificate of need requirement and amending P.L.1992, c.160.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 19 of P.L.1992, c.160 (C.26:2H-7a) is amended to read as follows:

    19. Notwithstanding the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) to the contrary, the following are exempt from the certificate of need requirement:

    Community-based primary care centers;

    Outpatient drug and alcohol services;

    Ambulance and invalid coach services;

    Mental health services which are non-bed related outpatient services;

    Changes in residential health care facility services;

    Mandatory renovations to existing facilities;

    Mandatory replacement of fixed or moveable equipment;

    Transfer of ownership interest except in the case of acute care hospitals and long-term care facilities in which the owner does not satisfy the Department of Health's review of the owner's prior operating experience as well as any requirements established by the federal government pursuant to Titles XVIII and XIX of the Social Security Act;

    Change of site for approved certificate of need within the same county;

    Relocation or replacement of a health care facility within the same county except for an acute care hospital;

    Continuing care retirement communities authorized pursuant to P.L.1986, c.103 (C.52:27D-330 et seq.);

    Acquisition by a hospital of a magnetic [reasonance] resonance imager that is already in operation in the State by another health care provider or entity;

    Adult day health care facilities; and

    Pediatric day health care facilities[; and

    Chronic renal dialysis facilities].

(cf: P.L.1992, c.160, s.19)

    2. This act shall take effect on January 1, 1993 and if enacted after that date shall be retroactive to January 1, 1993.

STATEMENT

    This bill removes chronic renal dialysis facilities from the list of health care facilities and services exempted from the certificate of need requirement under section 19 of P.L.1992, c.160 (C.26:2H-7a).

    The exemption of this health care service is contrary to other provisions of P.L.1992, c.160, which preserve the requirement for a certificate of need for similar tertiary care services in order to control costly duplication of services. Deregulation of this clinical service would create hardships on urban hospitals which have made substantial investments in renal dialysis facilities and would place them at a competitive disadvantage with respect to the initiation of replacement tertiary care services that are currently not exempt from the certificate of need requirement.

Removes chronic renal dialysis facilities from list of health care facilities and services exempted from certificate of need requirement.