SENATE, No. 2059

STATE OF NEW JERSEY

INTRODUCED MAY 8, 1997

By Senators BASSANO and CONNORS

An Act concerning certificate of need and supplementing P.L.1971, c.136 (C.26:2H-1 et seq.).

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

    1. As used in this act:

    "Bona fide integrated delivery system" means an integrated delivery system with a parent board of trustees which has the following attributes:

    a. the ability to approve or remove at least a majority of the trustees of the subsidiary or affiliate boards;

    b. the ability to approve or otherwise control the operating and capital budgets of the subsidiaries or affiliates; and

    c. the parent corporation is the sole member of the subsidiary or affiliate companies.

    "Cardiac surgery services" includes invasive diagnostic catheterization and all treatment modalities including open and closed heart surgical procedures.

    "Integrated delivery system" means a legal entity comprised of legally affiliated health care providers, among which shall be included at least two acute care hospitals.

    2. a. Notwithstanding the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) to the contrary, the Commissioner of Health and Senior Services shall, no later than 30 days after the effective date of this act, grant a license to an acute care hospital located in Ocean county for the provision of adult cardiac surgery services, subject to the provisions of subsection b. of this section.

    b. The hospital shall:

    (1) have been a provider of cardiac catheterization services for a minimum of three years prior to the effective date of this act and shall have met the minimum utilization criteria established by the Department of Health and Senior Services for the continued provision of these services;

    (2) have provided not less than 1,000 total cardiac catheterization procedures in 1996, including both inpatient and outpatient procedures; and

    (3) shall not deny access to invasive cardiac catheterization or adult cardiac surgical services to any clinically suitable person on the basis of that person's diagnosis, race, religion, gender or ability to pay.

    3. a. Notwithstanding the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) to the contrary, the Commissioner of Health and Senior Services shall, no later than 30 days after the effective date of this act, allow the relocation of established cardiac surgery services from one acute care hospital in Essex county to another acute care hospital in Essex county, if:

    (1) both the transferring hospital and the recipient hospital are components of a bona fide integrated delivery system;

    (2) the transfer of services with the integrated delivery system will not alter the stream of revenue such that the transferring hospital will still receive the net revenue for services performed at the recipient hospital; and

    (3) the transferring hospital will maintain medical control of the program such that physicians and other specialists who perform cardiac surgery services at the transferring hospital will have the opportunity to perform cardiac surgery at the recipient hospital.

    b. The transfer of services pursuant to this act shall be exempt from any certificate of need requirements under P.L.1971, c.136 (C.26:2H-1 et seq.) and shall result in the automatic reassignment of licensure from the transferring facility to the recipient facility.

    c. Upon relocating cardiac surgery services pursuant to this act, the transferring hospital shall certify to the Department of Health and Senior Services that the transfer is in compliance with the provisions of subsection a. of this section.

    4. a. Notwithstanding the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) to the contrary, the Commissioner of Health and Senior Services shall, no later than 30 days after the effective date of this act, allow the relocation of established cardiac surgery services from one acute care hospital in Morris county to another acute care hospital in Union county, if:

    (1) both the transferring hospital and the recipient hospital are components of a bona fide integrated delivery system;

    (2) the transfer of services with the integrated delivery system will not alter the stream of revenue such that the transferring hospital will still receive the net revenue for services performed at the recipient hospital; and

    (3) the transferring hospital will maintain medical control of the program such that physicians and other specialists who perform cardiac surgery services at the transferring hospital will have the opportunity to perform cardiac surgery at the recipient hospital.

    b. The transfer of services pursuant to this act shall be exempt from any certificate of need requirements under P.L.1971, c.136 (C.26:2H-1 et seq.) and shall result in the automatic reassignment of licensure from the transferring facility to the recipient facility.

    c. Upon relocating cardiac surgery services pursuant to this act, the transferring hospital shall certify to the Department of Health and Senior Services that the transfer is in compliance with the provisions of subsection a. of this section.

    5. This act shall take effect immediately.

STATEMENT

    This bill requires that the Commissioner of Health and Senior Services grant a license to an acute care hospital located in Ocean county for the provision of adult cardiac surgery services, subject to the following provisions:

    -- the hospital shall have been a provider of cardiac catheterization services for a minimum of three years prior to the effective date of the bill and shall have met the minimum utilization criteria established by the Department of Health and Senior Services for the continued provision of these services;

    -- the hospital shall have provided not less than 1,000 total cardiac catheterization procedures in 1996, including both inpatient and outpatient procedures; and

    -- the hospital shall not deny access to invasive cardiac catheterization or adult cardiac surgical services to any clinically suitable person on the basis of that person's diagnosis, race, religion, gender or ability to pay.

    In addition, the bill requires the Commissioner of Health and Senior Services to allow the relocation of established cardiac surgery services from one acute care hospital to another within Essex county, and between Morris and Union counties, respectively, if:

    -- both the transferring hospital and the recipient hospital are components of a bona fide integrated delivery system;

    -- the transfer of services with the integrated delivery system will not alter the stream of revenue such that the transferring hospital will still receive the net revenue for services performed at the recipient hospital; and

    -- the transferring hospital will maintain medical control of the program such that physicians and other specialists who perform cardiac surgery services at the transferring hospital will have the opportunity to perform cardiac surgery at the recipient hospital.

    The transfer of services pursuant to this bill shall be exempt from

any certificate of need requirements under P.L.1971, c.136 (C.26:2H-1 et seq.) and shall result in the automatic reassignment of licensure from the transferring facility to the recipient facility.

    Upon the relocation of cardiac surgery services pursuant to this bill, the transferring hospital shall certify to the Department of Health and Senior Services that the transfer is in compliance with the provisions of this bill.

Exempts certain hospitals from certificate of need for cardiac surgery.