Bill Text: NJ A3805 | 2010-2011 | Regular Session | Introduced
Bill Title: Limits severance payments made by certain hospitals to $175,000.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-17 - Introduced, Referred to Assembly Health and Senior Services Committee [A3805 Detail]
Download: New_Jersey-2010-A3805-Introduced.html
Sponsored by:
Assemblyman MATTHEW W. MILAM
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Limits severance payments made by certain hospitals to $175,000.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning severance payments by certain 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.), which receives a charity care subsidy pursuant to P.L.1992, c.160 (C.26:2H-18.51 et al.), shall limit the value of any severance package it provides to an executive or employee to $175,000. If the value of a severance package received by an executive or employee exceeds $175,000, the amount that the hospital is eligible to receive for its charity care subsidy in the subsequent year shall be reduced by the amount by which the value of the severance package exceeds $175,000. Nothing in this section shall be construed to impair any contract that existed prior to the effective date of this act.
2. The Commissioner of Health and Senior Services, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt such rules and regulations as may be necessary for the implementation of this act.
3. This act shall take effect immediately, and shall apply to any severance contract agreement or employment policy adopted on or after the effective date of this act.
STATEMENT
This bill limits the value of any severance package that a general hospital which receives a charity care subsidy may pay to an executive or employee to $175,000. If the value of a severance package received by an executive or employee exceeds $175,000, the amount over $175,000 shall be deducted from the amount that the hospital is eligible to receive for its charity care subsidy in the subsequent year.
The bill takes effect immediately and applies prospectively, and shall have no effect on any contract that existed prior to the effective date of the bill.
