ASSEMBLY, No. 892

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman WRIGHT

An Act concerning exemptions from 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;

    Basic primary care services provided by an acute care hospital, including obstetrical, pediatric, medical-surgical and emergency room services;

    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 an acute care hospital, or a long-term care facility 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;

    Pediatric day health care facilities; and

    Chronic renal dialysis facilities.

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

    2. This act shall take effect immediately and shall be retroactive to January 1, 1993.

STATEMENT

    This bill amends section 19 of P.L.1992, c.160 (C.26:2H-7a), the "Health Care Reform Act of 1992," to add basic primary care services, including obstetrical, pediatric, medical-surgical and emergency room services, provided by an acute care hospital to the list of services and facilities exempted from the certificate of need requirement established pursuant to section 7 of P.L.1971, c.136 (C.26:2H-7).

    P.L.1992, c.160 deregulates the hospital rate setting system and is intended to facilitate the development of managed care arrangements. Under the conditions of a competitive marketplace, a hospital which did not offer all of these basic primary care services could be at a disadvantage in securing managed care contracts if it was constrained in its development of basic primary care services by having to obtain a certificate of need. This bill would affect only those acute care hospitals which have the appropriate resources to expand their range of basic primary care services.

Exempts hospital basic primary care services from the certificate of need requirement.