[First Reprint]

ASSEMBLY, No. 1728

STATE OF NEW JERSEY

INTRODUCED MARCH 18, 1996

By Assemblywoman VANDERVALK

An Act concerning the licensure of hospitals and amending and supplementing P.L.1971, c.136.

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

    1. Section 12 of P.L.1971, c.136 (C.26:2H-12) is amended to read as follows:

    12. a. No health care facility shall be operated unless it shall: (1) possess a valid license issued pursuant to this act, which license shall specify the kind or kinds of health care services the facility is authorized to provide; (2) establish and maintain a uniform system of cost accounting approved by the commissioner; (3) establish and maintain a uniform system of reports and audits meeting the requirements of the commissioner; (4) prepare and review annually a long range plan for the provision of health care services, which plan shall be compatible with the State Health Plan as related to medical health services, health care services, and health manpower; and (5) establish and maintain a centralized, coordinated system of discharge planning which assures every patient a planned program of continuing care and which meets the requirements of the commissioner which requirements shall, where feasible, equal or exceed those standards and regulations established by the federal Government for all federally-funded health care facilities but shall not require any person who is not in receipt of State or federal assistance to be discharged against his will.

    b. (1) Application for a license for a health care facility shall be made upon forms prescribed by the department. The department shall charge such nonrefundable fees for the filing of an application for a license and any renewal thereof, as it shall from time to time fix in rules or regulations; provided, however, that no such fee shall exceed $2,000.00. The application shall contain the name of the health care facility, the kind or kinds of health care service to be provided, the location and physical description of the institution, and such other information as the department may require. (2) A license shall be issued by the department upon its findings that the premises, equipment, personnel, including principals and management, finances, rules and bylaws, and standards of health care service are fit and adequate and there is reasonable assurance the health care facility will be operated in the manner required by this act and rules and regulations thereunder. (3) In the case of a general or special hospital, the department shall issue a license to the facility upon receipt of written confirmation of its accreditation by ¹[the Joint Commission on Accreditation of Health Care Organizations (JCAHO)] a voluntary accreditation agency approved by the department¹. Except as provided in this subsection, a hospital which maintains its accreditation by ¹[the JCAHO] a voluntary accreditation agency approved by the department¹ is exempt from the requirement of an inspection by the department for the purposes of licensure issuance and renewal only, subject to the following conditions: the hospital shall be required to furnish the department with a copy of the ¹[JCAHO] accreditation agency¹ findings within 60 days after its receipt of those findings and the hospital's plan for correcting any deficiencies found by the ¹[JCAHO] accreditation agency¹, as well as any progress reports required by the ¹[JCAHO] accreditation agency¹ or the department with regard to the correction of those deficiencies; and the hospital shall be required to correct those deficiencies within the time period specified by the ¹[JCAHO] accreditation agency¹. In the case of a three-year ¹[JCAHO]¹ accreditation ¹by an agency approved by the department¹ , the department shall conduct an unannounced inspection of the hospital no later than 24 months after the date the accreditation was granted.

    Nothing as herein provided shall be construed as exempting the hospital from compliance with State hospital licensing standards as set forth in chapter 43G of the New Jersey Administrative Code, or precluding inspection by the department of a hospital under the following circumstances:

    (a) for an investigation of specific complaints, services or conditions which have been reported to or identified by the department;

    (b) when an investigation is necessary for the furnishing to the department by a hospital of any information and reports which are authorized by State or federal law; or

    (c) if the hospital receives a conditional ¹[JCAHO]¹ accreditation ¹from,¹ or fails to be accredited ¹by, a voluntary accreditation agency approved by the department¹.

    If any State hospital licensing standards exceed the requirements of ¹[the JCAHO] a voluntary accreditation agency approved by the department¹, a hospital shall be required to meet the State standards as a condition of licensure, notwithstanding its accreditation by ¹[the JCAHO] that agency¹. The department shall monitor a hospital's compliance with any such standards.

    Nothing as herein provided shall be construed to deny licensure to a hospital due to ¹[JCAHO] an agency's¹ accreditation requirements which are in violation of or conflict with State or federal laws.

    c. [A license issued before the effective date of this act to a health care facility for its operation, upon the first renewal date thereafter, may be extended for a one-year period of time, provided the facility then meets the requirements for licensure at the time said license was issued and submits an acceptable plan to meet current requirements at the end of said period of time] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill).

    d. The commissioner may amend a facility's license to reduce that facility's licensed bed capacity to reflect actual utilization at the facility if the commissioner determines that 10 or more licensed beds in the health care facility have not been used for at least the last two succeeding years. For the purposes of this subsection, the commissioner may retroactively review utilization at a facility for a two-year period beginning on January 1, 1990.

(cf: P.L.1991, c.187, s.38)

    2. (New section) The Department of Health shall report to the Governor and the Legislature three years from the effective date of P.L. , c. (pending before the Legislature as this bill) on the effects on quality of care in hospitals due to the changes in department inspection requirements provided for in that act. The report shall include the number of interim multi-year accreditation period inspections conducted by the department, as well as the number of inspections conducted to investigate conditions listed in subparagraphs (a), (b) and (c) of paragraph (3) of subsection b. of section 12 of P.L.1971, c.136 (C.26:2H-12).

    3. This act shall take effect immediately.

Provides for licensure of hospitals by DOH based on accreditation by voluntary accreditation agencies approved by DOH.