SENATE, No. 572

STATE OF NEW JERSEY

INTRODUCED JANUARY 29, 1996

By Senator BASSANO

An Act requiring the reporting of certain income by hospitals and supplementing Title 26 of the Revised Statutes.

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

    1. A general hospital licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) shall annually report to the Commissioner of Health, on a form and in a manner prescribed by the commissioner:

    a. Its financial relationship with any for-profit subsidiary in which the hospital has a financial interest, or with which it is affiliated. The hospital shall include in that report information about its employees or health care professionals who are affiliated with the hospital who have any financial interest in a for-profit subsidiary in which the hospital has a financial interest, or with which it is affiliated. The hospital shall require its employees and health care professionals who are affiliated with the hospital to annually disclose to the chief financial officer of the hospital any such financial interest.

    b. For the preceding 12-month period:

    (1) the amount of monies received by the hospital from its foundation, development fund or other private nonprofit entity, including the source of those monies, the amount received from each source, and how the monies were utilized by the hospital; and

    (2) the amount of monies received by the hospital through its own fund-raising efforts and how the monies were utilized by the hospital, including the amounts allocated to cover administrative costs.

    2. The Commissioner of Health, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to effectuate the purposes of this act.

    3. This act shall take effect immediately.

STATEMENT

    This bill requires each general hospital in the State to annually disclose to the Commissioner of Health its financial relationship with any for-profit subsidiary in which the hospital has a financial interest, or with which it is affiliated, and any financial interest which a hospital employee or affiliated health care professional has in a for-profit subsidiary of that hospital.

    The bill also requires hospitals to report annually to the commissioner on the amount of monies received by the hospital

during the preceding 12-month period from its foundation, development fund or other private nonprofit entity, including the source of those monies, the amount received from each source, and how the monies were utilized by the hospital. The hospital also shall report any monies received through its own fund-raising efforts and how those monies were utilized by the hospital.

Requires hospitals to disclose financial relationships with for-profit subsidiaries and report monies received from private nonprofit entities.