FISCAL NOTE TO

ASSEMBLY, No. 1729

STATE OF NEW JERSEY

DATED: JANUARY 24, 1997

      Bill Summary:

      Assembly Bill No. 1729 of 1996 authorizes a municipality which is the county seat of a county of the first class and has a population of less than 100,000, according to the latest decennial census, to impose a user fee on any hospital located within the municipality that is exempt from local property taxation, of up to $1.00 a day for each person over the age of 21 who enters that hospital for the purpose of health care treatment or services. The hospital would assume the cost of the fee in full and not pass along any portion of this fee to a health insurer, health maintenance organization, employee or employer self-insured health benefits plan, patient or other public or private payer.

      Agency Comments:

      Though the Department of Health and Senior Services (DHSS) and the Office of Management and Budget have provided fiscal information, their comments are not germane to the legislation and, therefore, are not considered.

      Office of Legislative Services Comments:

      Only one municipality is affected by the legislation, Hackensack in Bergen County. Only one "association or corporation organized exclusively for hospital purposes" appears to be subject to the $1.00 a day fee, Hackensack Medical Center.

      Unpublished DHSS data indicate that in 1995: (a) there were nearly 214,000 inpatient days, outpatient visits and emergency room visits at the Hackensack Medical Center and (b) persons over the age of 21 accounted for approximately 88 percent of total Statewide inpatient days. (No age breakdown is readily available with respect to outpatient and emergency room visits.) Thus, imposing a $1.00 fee on persons over the age of 21 who receive health care treatment or services from the Hackensack Medical Center may generate $188,000 to the City of Hackensack.

This fiscal note has been prepared pursuant to P.L.1980, c.67.