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Bill

A 1830

Revises provisions of State law concerning licensure of ambulatory care facility.

2026-2027 Regular Session Introduced by Anthony Verrelli

The bill updates licensure requirements for ambulatory care facilities, increasing accountability with standardized reporting, audits, discharge planning, and public posting of ins

Reported out of Assembly Committee, 2nd Reading
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Bill Summary · A 1830

Summary of Assembly Bill A1830 (Session 222, New Jersey)

Purpose and intent

  • A1830 revises provisions of New Jersey law governing licensure of ambulatory care facilities and related health care services. The bill updates licensure requirements, reporting, and certain special rules for ambulatory surgical facilities and imaging services, aiming to clarify processes and increase accountability for licensed facilities.

Key provisions and changes

  • Licensure prerequisites and ongoing compliance (Section 12)
    • Health care services/facilities may operate only if they:
    • Hold a valid license issued under the state licensure statute (P.L.1971, c.136).
    • Establish and maintain:
      • A uniform cost accounting system approved by the commissioner.
      • A uniform system of reports and audits per commissioner requirements.
      • An annual long-range plan for health care services.
      • A centralized, coordinated discharge planning system meeting commissioner requirements (and, where feasible, matching or exceeding federal standards for federally funded facilities). Discharge planning must not force discharge against the patient’s will if not eligible for state/federal assistance.
  • Licensing process and fees (Section 12, subsections b(1)-(3))
    • Application procedures and required information are set by the department.
    • Fees: a single nonrefundable filing/issuance license fee, a single nonrefundable renewal fee, and a single nonrefundable biennial inspection fee. Fee amounts capped:
    • Hospitals: license/issuance/renewal not to exceed $10,000; inspection up to $5,000.
    • Other facilities: license/issuance/renewal not to exceed $4,000; inspection up to $2,000.
    • No inspection fee for non-biennial inspections.
    • Surgical practices that must obtain licensure as ambulatory care facilities under a 2017 law are exempt from initial and renewal license fees.
    • Application must include facility name, services, location, and other department-required details.
  • License issuance standards (Section 12, b(2)-(3))
    • Licenses issued if the department finds premises, equipment, personnel (including principals and management), finances, rules/bylaws, and service standards fit and adequate, with reasonable assurance of proper operation under law and regulations.
    • The department must post inspection reports on its website for residential and licensed facilities, including any related reports, with specific timelines for serious health and safety violations (no later than 72 hours after inspection). Suspension notices must also be posted within 72 hours.
    • The department must notify the appropriate county and human services officials of any serious violations or suspensions.
    • If inspection responsibilities transfer to another department, that department must post inspection reports and comply with the same requirements.
  • Capacity reduction authority (Section 12, d)
    • The commissioner may amend a facility’s license to reduce bed capacity if 10 or more licensed beds have not been used for the preceding two years. Retroactive utilization reviews may cover a two-year period beginning Jan 1, 1990.
  • Pre-licensure consultation (Section 12, e)
    • For prospective applicants not subject to certificate of need, the department must offer a pre-licensure consultation within 60 days of request to provide guidance on rules, regulations, standards, and procedures.
  • Imaging services licensure (Section 12, f)
    • Entities providing MRI or CT services must obtain a department license to operate before commencing services. Physicians operating imaging services on the effective date of a 2004 law have one year to obtain the license.
  • Relocation, transfer, and ownership provisions for surgical facilities (Section 12, g)
    • Provisions restricting new licenses for ambulatory surgical facilities, including detailed transfer/relocation review criteria and approvals.
    • In partnership and hospital ownership scenarios, special transfer/relocation rules apply. Specific exceptions allow certain historical ownership structures or combinations of practices to proceed under existing conditions.
    • Beginning in 2017, the department cannot issue a new registration to a surgical practice; relocations after that date must result in licensure as an ambulatory care facility providing surgical/related services, subject to subsection g.
    • A set of criteria allows exemptions or streamlined approvals for various ownership and operation configurations (e.g., joint ownership with hospitals, CMS certification, or accreditation considerations).
    • New licensing pathways post-2017 require compliance with relocation/expansion limits and plan reviews.
  • Reporting by ambulatory care facilities (Section 12, k)
    • Facilities licensed to provide surgical and related services must:
    • Report ownership changes within 30 days.
    • Annually report the names of the medical director, physician director, anesthesia director, and nursing director; notify the department of any director changes within 30 days.

Who is affected

  • Ambulatory care facilities, including:
    • Hospitals and non-hospital health care facilities seeking licensure.
    • Surgical practices and ambulatory surgical facilities (and those transitioning under the 2017 reforms).
    • Facilities providing MRI or CT imaging services (must obtain licensure to operate).
  • Individuals and entities with ownership, management, or direct care roles in licensed facilities (e.g., medical directors, nursing directors, administrator roles).
  • State agencies (Department of Health) responsible for licensure, inspections, reporting, and posting of inspection results; and Department of Community Affairs / Health Care Plan Review Unit for related approvals in certain relocation or expansion scenarios.
  • Counties and county welfare/human services agencies, due to required notifications about serious violations.

Timeline and effective date

  • The bill provides for immediate effect upon enactment.
  • Several provisions reference ongoing programs and historical timelines (e.g., special exemptions or phased requirements tied to prior laws such as P.L.2009, c.24 and P.L.2017, c.283). Notable timing elements include:
    • Imaging licensure requirements in place prior to this act continue; one-year grace period for physicians operating MRI/CT as of the 2004 law.
    • Licensing for surgical practices post-2017 relocations and expansions with specific review/approval steps.
    • Ambulatory surgical facility-related assessments: exemptions through State Fiscal Year 2025, with assessment applicability beginning in FY2026 for certain surgical practices, and ongoing amendments depending on capacity and use.

Notable former or cross-referenced provisions

  • The bill reaffirms many requirements from P.L.1971, c.136 (health care facility licensure) and previously enacted reforms (e.g., P.L.1998, P.L.2017, P.L.2009, P.L.2004) and their interaction with current licensure and accreditation standards.
  • It emphasizes transparency by requiring public posting of inspection results and timely notification to relevant authorities when serious violations occur or licenses are suspended.

If you’d like, I can provide a concise one-page quick-reference card with the most essential requirements and a side-by-side comparison to current law.

Compiled from official sources — confirm details with the bill’s official record.

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