A 5185 — Revises regulation of certain health care facilities.

Summary

Health care facilities, certain-revise regulation

Bill Text

• Introduced View text Current html June 02, 2026

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 10 section(s) of the New Jersey statutes: N.J.S.A. 26:2G-28; N.J.S.A. 26:2H-5; N.J.S.A. 26:2H-8; N.J.S.A. 26:2H-12.12; N.J.S.A. 26:2H-13.1; N.J.S.A. 26:2H-14.

• N.J.S.A. 26:2G-28

  $25 $50 → $12,500 $25,000 Notwithstanding any law, rule, or regulation to the contrary, on and after the effective date of P.L. , c. (pending before the Legislature as this bill), the department shall, by regulation adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), impose a graduated penalty commensurate with the facility's licensed-bed capacity. The department may annually increase the penalties authorized by this section, with any increase to the penalties authorized by this section not to exceed the cumulative annual percentage increase in the Consumer Price Index for the five fiscal years prior to the date of the proposed subsequent increase.

  amended

• N.J.S.A. 26:2H-5

  this act this act this act this act this act → P.L.1971, c.136 (C.26:2H-1 et seq.) P.L.1971, c.136 (C.26:2H-1 et seq.) P.L.1971, c.136 (C.26:2H-1 et seq.) P.L.1971, c.136 (C.26:2H-1 et seq.) P.L.1971, c.136 (C.26:2H-1 et seq.) including seeking injunctive relief against any person, firm, corporation, partnership, or licensed healthcare facility

  amended

• N.J.S.A. 26:2H-8

  a. b. c. The Commissioner of Health shall be permitted to debar a health care facility or any individual in the ownership structure of a health care facility that is licensed under the "Health Care Facilities Planning Act," P.L.1971, c.136 (C.26:2H-1 et seq.) from eligibility for a certificate of need after a determination that the health care facility has substantial prior or continuing violations of the "Health Care Facilities Planning Act," P.L.1971, c.136 (C.26:2H-1 et seq.) or certificate of need requirements. In each case, the decision to debar shall be made at the discretion of the Commissioner of Health, who may consider the following factors as material in each decision to debar: (1) the record of violations by the health care facility or the facility's owners, including, without limitation, any member, manager, partner, shareholder, trustee, trust beneficiary, corporate officer or director, or any person holding a direct or indirect interest through a trust, limited liability company, limited partnership, or corporation, regardless of the percentage of ownership, controlling or not; and the record of violations of other health care facilities within the same ownership system; (2) the significance or scale of the violations, including but not limited to, whether the violations risk life or safety or restrict access to care; (3) the existence of outstanding audits or failure to pay previous fines or penalties; (4) the existence of a record of convictions for any offense related to healthcare fraud, patient abuse or neglect, bribery, embezzlement, kickbacks, or financial crimes within the past 10 years by the facility's owners, including, without limitation, any member, manager, partner, shareholder, trustee, trust beneficiary, corporate officer or director, or any person holding a direct or indirect interest through a trust, limited liability company, limited partnership, or corporation regardless of the percentage of ownership, controlling or not; (5) failure to respond to a request from the Commissioner of Health to produce records, forms, or documents; and (6) submission of falsified or altered records, forms, or documents. d. If the Commissioner of Health debars a health care facility or individual from eligibility for a certificate of need, the health care facility or individual shall be furnished with a written notice stating that: (1) debarment has been imposed, the date on which debarment becomes effective, and the reasons therefor; and (2) if the health care facility or individual chooses to appeal the debarment, the health care facility or individual shall submit the appeal in writing to the Department of Health within 30 days of receipt of the notification of debarment pursuant to this section. e. If the Commissioner of Health receives a timely request for appeal of debarment pursuant to this section, the commissioner, within 15 days of receipt of the appeal, shall refer the matter to the Office of Administrative Law for adjudication. f. (1) If a hospital is debarred, the license for any other associated health care facility within the hospital's health system shall be made provisional pending the completion of a financial audit and the implementation of a comprehensive improvement plan, which shall incorporate all of the hospitals in the hospital's health system and shall be submitted by the hospital to, and approved by, the department prior to implementation of the plan. The plan shall propose: (a) cost containment measures, which shall include an evaluation of how such measures will impact the standard charges for items and services provided by each applicable hospital; (b) solutions to existing disparities in the provision of health care services to medically underserved groups, such as low-income persons, racial and ethnic minorities, immigrants, and persons with disabilities; and (c) a plan to restructure the hospital's health system such that all hospitals within the system provide adequate services a

  amended

• N.J.S.A. 26:2H-12.12

  of $250 plus $50 for each day after the 60th day that the health care facility fails to submit a claim → in accordance with section 13 or 14 of P.L.1971, c.136 (C.26:2H-13 or C.26:2H-14)

  amended

• N.J.S.A. 26:2H-13.1

  of not more than $5,000.00 → 2. in accordance with section 13 or 14 of P.L.1971, c.136 (C.26:2H-13 or C.26:2H-14)

  amended

• N.J.S.A. 26:2H-14

  $2,500 $5,000 $5,000 → $12,500 $25,000 $25,000 Notwithstanding any law, rule, or regulation to the contrary, on and after the effective date of P.L. , c. (pending before the Legislature as this bill), the department shall, by regulation adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), impose a graduated penalty commensurate with the facility's licensed-bed capacity. The department may annually increase the penalties authorized by this section, with any increase to the penalties authorized by this section not to exceed the cumulative annual percentage increase in the Consumer Price Index for the five fiscal years prior to the date of the proposed subsequent increase.

  amended

• N.J.S.A. 26:2H-15

  of $100.00 for the first offense and $500.00 for each subsequent offense → in accordance with section 13 or 14 of P.L.1971, c.136 (C.26:2H-13 or C.26:2H-14)

  amended

• N.J.S.A. 26:2H-18.59c

  not to exceed $1,000 → in accordance with section 13 or 14 of P.L.1971, c.136 (C.26:2H-13 or C.26:2H-14) d. The Commissioner of Health may make a determination that a hospital has substantial prior or continuing violations of the provisions of this section. In each case, the determination shall be made at the discretion of the commissioner, who may consider the following factors as material in each determination: (1) the record of violations by the hospital or the facility's owners, including, without limitation, any member, manager, partner, shareholder, trustee, trust beneficiary, corporate officer or director, or any person holding a direct or indirect interest through a trust, limited liability company, limited partnership, or corporation, regardless of the percentage of ownership, controlling or not; and the record of violations of other health care facilities within the same ownership system; (2) the significance or scale of the violations, including, but not limited to, whether the violations risk life or safety or restrict access to care; (3) the existence of outstanding audits or failure to pay previous fines or penalties; (4) the existence of a record of conviction for any offense related to healthcare fraud, patient abuse or neglect, bribery, embezzlement, kickbacks, or financial crimes within the past 10 years by the facility's owners, including, without limitation, any member, manager, partner, shareholder, trustee, trust beneficiary, corporate officer or director, or any person holding a direct or indirect interest through a trust, limited liability company, limited partnership, or corporation regardless of the percentage of ownership, controlling or not; (5) failure to respond to a request from the Commissioner of Health to produce records, forms, or documents; and (6) submission of falsified or altered records, forms, or documents. e. If the Commissioner of Health determines that a hospital has substantial prior or continuing violations of the provisions of this section, the hospital shall be: (1) furnished with a written notice stating that: (a) the hospital has been found to have substantial prior or continuing violations and the reasons therefor; and (b) the hospital shall be required to submit a financial audit of the hospital and a comprehensive improvement plan pursuant to paragraph (2) of this section; and (2) required to submit to the department, at the hospital's expense, a third-party financial audit of the hospital and a comprehensive improvement plan, which shall incorporate all of the hospitals in the hospital's health system, as applicable and shall be approved by the department before implementation of the plan. The plan shall propose: (a) cost containment measures, which shall include an evaluation of how such measures will impact the standard charges for items and services provided by each applicable hospital; (b) solutions to existing disparities in the provision of health care services to medically underserved groups, such as low-income persons, racial and ethnic minorities, immigrants, and persons with disabilities; and (c) a plan to restructure the hospital's health system such that all hospitals within the system provide adequate services and access to care for the communities served by the health system. The hospital's license shall be made provisional and shall automatically convert to a full license to operate in the State of New Jersey one year following the implementation of an approved comprehensive improvement plan pursuant to this paragraph. f. As used in this section, "health system" means an organization or group of entities, including at least one hospital and one or more physician groups providing comprehensive, coordinated care through shared ownership, joint management, or a common governance structure.

  amended

• N.J.S.A. 26:2H-18.64

  of $10,000 → in accordance with section 13 or 14 of P.L.1971, c.136 (C.26:2H-13 or C.26:2H-14)

  amended

• N.J.S.A. 26:2H-31

  of $100.00 → 3. in accordance with section 13 or 14 of P.L.1971, c.136 (C.26:2H-13 or C.26:2H-14)

  amended

Action History

1. June 15, 2026

   REP REF AAP

2. June 01, 2026

   INT 1RA REF AHN

Sponsors

• Katie Brennan · Primary
• Heather Simmons · Primary
• Shanique Speight · Primary
• Sterley S. Stanley · Primary

Votes

Subjects