Sponsored by:
Senator ROBERT W. SINGER
District 30 (Monmouth and Ocean)
SYNOPSIS
Prohibits hospital, during public health emergency or critical staffing shortage, to rely exclusively on vendor management systems.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning vendor procurement at 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. During a public health emergency declared pursuant to P.L.2005, c.222 (C.26:13-1 et seq.) or a hospital-specific critical staffing shortage, as identified pursuant to criteria established by the Commissioner of Health, a hospital licensed in this State pursuant to P.L.1971, c.136 (C.26:2H-1 et al.) shall:
(1) be prohibited from exclusively relying on a vendor management system for the procurement of third-party staff; and
(2) demonstrate a good faith effort in utilizing all available methods of procuring third-party staff, including contracting directly with staffing agencies authorized to operate in the State, to remedy any staffing shortages at the hospital.
b. The Department of Health shall ensure, by means of its periodic inspection of a hospital and information posted by a hospital pursuant to subsection a. of section 2 of P.L.2025, c.21 (C.26:2H-5g), that a hospital subject to the provisions of this act has complied, when applicable, with the provisions of subsection a. of this act.
c. A hospital that fails to comply with the provisions of subsection a. of this act shall be liable to a penalty in accordance with the provisions of section 13 of P.L.1971, c.136 (C.26:2H-13).
d. Nothing in the act shall be construed to alter or pause any existing State or federal laws or regulations regarding vendor credentialing and compliance.
e. As used in this act, “vendor management system” means a specialized software platform or programmatic approach designed to centralize the procurement, credentialing, and compliance management of third-party vendors and contingent staff, such as travel nurses or technicians.
2. The Commissioner of Health shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as are necessary to effectuate the purposes of this act.
3. This act shall take effect immediately.
STATEMENT
This bill prohibits a hospital licensed in this State, during a public health emergency or a hospital-specific critical staffing shortage, from exclusively relying on a vendor management system for the procurement of third-party staff. Under these conditions, the bill requires a hospital to demonstrate a good faith effort in utilizing all available methods of procuring third-party staff, including contracting directly with staffing agencies authorized to operate in the State, to remedy any staffing shortages at the hospital. Under the bill, a “vendor management system” means a specialized software platform or programmatic approach designed to centralize the procurement, credentialing, and compliance management of third-party vendors and contingent staff, such as travel nurses or technicians.
The bill directs the Department of Health to ensure, by means of its periodic inspection of a hospital and information posted by a hospital pursuant to State law, that a hospital subject to the bill is in compliance with these provisions. A hospital that fails to comply with these provisions would be liable to a penalty, in accordance with State law, as assessed and collected by the Department of Health.