Bill Text: NJ S4253 | 2018-2019 | Regular Session | Introduced
Bill Title: Expands hospital reporting requirements.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2019-12-12 - Combined with S3741 (SCS) [S4253 Detail]
Download: New_Jersey-2018-S4253-Introduced.html
Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
SYNOPSIS
Expands hospital reporting requirements.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning reporting requirements for hospitals and amending P.L.2008, c.58.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2008, c.58 (C.26:2H-5.1b) is amended to read as follows:
3. As a condition of licensure under P.L.1971, c.136 (C.26:2H-1 et al.), a general hospital shall:
a. provide to the Department of Health:
(1) monthly unaudited financial information and annual audited financial statements [to the Department of Health, and such other financial information as the department may request]; and
(2) by November 30 of each year, Internal Revenue Service Form 990 and all schedules and supporting documentation required to be submitted to the Internal Revenue Service in conjunction with Form 990 for the prior tax year; except that, if the hospital does not file a Form 990 with the Internal Revenue Service, the hospital shall provide to the department all governance, financial, and operating information that would otherwise be reported on Form 990 for the prior tax year, including the information that would be required to be submitted in the schedules and supporting documentation in conjunction with Form 990, to the extent that such information exists with respect to a for-profit hospital;
b. permit the Commissioner of Health, or a monitor appointed by the commissioner, as applicable, to oversee its financial operations, and, if the commissioner determines that the hospital is at risk of being in financial distress or is in financial distress based on criteria specified by regulation, participate in the development and implementation of a corrective plan to resolve the hospital's financial difficulties, pursuant to section 2 of P.L.2008, c.58 (C.26:2H-5.1a); and
c. if the hospital is owned or managed by a for-profit entity, including an entity that has a majority ownership interest in the hospital, provide to the department the following information, to the extent that such information is not otherwise reported pursuant to subsection a. of this section:
(1) a list of all payments for goods or services, including leases and rentals, made to any entity owned or managed, in whole or in part, by any owner, board member, or officer of the entity that owns or operates the hospital, or a person related to such an individual;
(2) a chart that identifies all legal entities related to or affiliated with the hospital, including the full name of the entity, its location, and its tax-exempt status;
(3) whether the owners or managers of the hospital maintain one or more offices, employees, or agents outside the United States that do business with the hospital, and any revenues and expenses of more than $5,000 transacted outside the United States;
(4) a list of investors and joint ventures between the hospital owners and its investors, including the name of the joint venture entity, whether for-profit or nonprofit, a description of its primary activity, and the percent of profit or stock ownership held by each of the officers, directors, physicians, and key employees of the hospital in the joint venture;
(5) the name and address of any management company paid to provide services to the hospital, a description of the primary activity of the company, and the percent of profit or stock ownership held by each of the officers, directors, physicians, and key employees of the hospital in the management company;
(6) the amounts paid to any affiliates for management or consulting services;
(7) a description of any trust that holds an interest in the hospital, including the names of the trustees, beneficial owners, and grantor or settlor of the trust, along with a copy of the full trust agreement;
(8) a list of any properties for which the hospital has claimed a tax abatement;
(9) a description of major plant or facility expansion projects at the hospital, including the project location, scope, timeline for completion, and estimated cost of, and sources of funding for, construction; and
(10) if the hospital had surplus revenues for the prior fiscal year, the total amount of any such surplus revenue used for each of the following: debt retirement; plant or facility expansion; or a reserve for operating contingencies.
d. The information submitted to the department pursuant to this section shall be posted on the department's Internet web site.
(cf: P.L.2012, c.17, s.160)
2. The Commissioner of Health shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations to implement the provisions of this act.
3. This act shall take
effect on the 180th day after the date of enactment, except that the
Commissioner of Health may take any anticipatory administrative action in
advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill expands the information hospitals are required to report to the Department of Health.
Specifically, in addition to the monthly unaudited financial information and annual audited financial statements hospitals are currently required to provide, hospitals will also be required to provide the department with Internal Revenue Service Form 990 and all schedules and supporting documentation required to be submitted to the Internal Revenue Service in conjunction with Form 990 for the prior tax year. If the hospital does not file a Form 990 with the Internal Revenue Service, the hospital will be required provide to the department all governance, financial, and operating information that would otherwise be reported on Form 990 for the prior tax year, including the information that would be required to be submitted in the schedules and supporting documentation in conjunction with Form 990, to the extent that such information exists with respect to a for-profit hospital.
Additionally, if a hospital is owned or managed by a for-profit entity, including an entity that has a majority ownership interest in the hospital, the hospital will be required to provide certain additional information, including: (1) a list of all payments for goods or services, including leases and rentals, made to any entity owned or managed, in whole or in part, by any owner, board member, or officer of the entity that owns or operates the hospital, or a person related to such an individual; (2) a chart that identifies all legal entities related to or affiliated with the hospital, including the full name of the entity, its location, and its tax-exempt status; (3) whether the owners or managers of the hospital maintain one or more offices, employees, or agents outside the United States that do business with the hospital, and any revenues and expenses of more than $5,000 transacted outside the United States; (4) a list of investors and joint ventures between the hospital owners and its investors, including the name of the joint venture entity, whether for-profit or nonprofit, a description of its primary activity, and the percent of profit or stock ownership held by each of the officers, directors, physicians, and key employees of the hospital in the joint venture; (5) the name and address of any management company paid to provide services to the hospital, a description of the primary activity of the company, and the percent of profit or stock ownership held by each of the officers, directors, physicians, and key employees of the hospital in the management company; (6) the amounts paid to any affiliates for management or consulting services; (7) a description of any trust that holds an interest in the hospital, including the names of the trustees, the beneficial owners, and the grantor or settlor of the trust, along with a copy of the full trust agreement; (8) a list of any properties for which the hospital has claimed a tax abatement; (9) a description of major plant or facility expansion projects at the hospital, including the project location, scope, timeline for completion, and estimated cost of, and sources of funding for, construction; and (10) if the hospital had surplus revenues for the prior fiscal year, the total amount of any such surplus revenue used for each of the following: debt retirement; plant or facility expansion; or a reserve for operating contingencies.
The information submitted to the department pursuant to the bill is to be posted on the department's Internet web site.
This bill implements certain recommendations made by the State Commission of Investigation in a March 19, 2019 report detailing the Commission's findings and recommendations with regard to hospital-related oversight and accountability.
