ASSEMBLY, No. 5425

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED MAY 20, 2019

 


 

Sponsored by:

Assemblyman  JOHN ARMATO

District 2 (Atlantic)

 

 

 

 

SYNOPSIS

     Prohibits licensed health care facilities from paying fees, commissions, or rebates to any person to refer patients to facility.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning referrals to health care services and supplementing Title 26 of the Revised Statutes.

 

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

 

     1.    No health care facility licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) shall pay or otherwise furnish any fee, commission, or rebate to any person to refer patients to the facility for health care treatment or services.  Each violation of the provisions of this section shall be punishable by a civil penalty of up to $25,000, which shall be collected and enforced by the Commissioner of Health in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).  Payments made pursuant to a hospital and physician incentive payment plan approved by the Department of Health pursuant to P.L.2017, c.46 (C.26:2H-12.80 et seq.) shall not constitute a violation of this section.

 

     2.    The Commissioner of Health, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to implement the provisions of this act.

 

     3.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill prohibits licensed health care facilities from paying or otherwise furnishing any fee, commission, or rebate to any person to refer patients to the facility for health care treatment or services.  Each violation of the bill will be punishable by a civil penalty of up to $25,000.  Payments made pursuant to a hospital and physician incentive payment plan approved by the Department of Health pursuant to P.L.2017, c.46 (C.26:2H-12.80 et seq.) would not constitute a violation of the bill.