LEGISLATIVE FISCAL ESTIMATE TO

SENATE, No. 1620

STATE OF NEW JERSEY

DATED: APRIL 2, 1997

      Bill Summary:

      Senate Bill No. 1620 of 1996 establishes a licencing program in the Department of Health and Senior Services (DHSS) for hospice care programs. Only those hospice programs that are certified to participate in the federal Medicare program would qualify for licensure and only those hospice care programs that have a license issued by DHSS would be permitted to operate in the State. The bill defines what a "hospice care program" is and the care and services that would have to be provided. DHSS would be allowed to charge a nonrefundable fee, not to exceed $2,000, for the filing of an application for a hospice care program license.

      Agency Comments:

      DHSS and the Office of Management and Budget have not provided any fiscal information on the legislation.

      Office of Legislative Services Comments:

      The legislation should have limited fiscal impact as discussed below.

      There are 44 Medicare-certified hospices in the State that would be eligible to apply to DHSS for licensure. As DHSS may charge a filing fee of up to $2,000 per applicant, the $88,000 in revenues that could be realized should be adequate to cover the cost of the application process. However, if DHSS adopts licensure standards, including investigations and inspections, that exceed those required by the federal Medicare program, DHSS may incur costs in excess of the $88,000 in fees that could be generated. Whether DHSS adopts licensure standards that exceed federal Medicare requirements cannot be determined at this time.

      This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

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