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Hospital reforms effective today

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Three health-care laws take effect today, 180 days after they were signed by Gov. Jon Corzine. They're all ideas from the January 2008 report of what's referred to as the Reinhardt Commission, appointed by Gov. Jon Corzine to review health-care economics in the state.

They are:

  • -- S1795, Requires members of boards of trustees for all general hospitals to complete a state-approved training program clarifying their roles and duties. Until today, those appointed before April 30, 2007 had been grandfathered from needing that training. Now they've got six months.  Passed the Senate 35-2 and 38-1; passed the Assembly 75-4.
  • -- S1796, Authorizes enhanced monitoring by the state Department of Health and Senior Services of hospitals' financial performance and intervention in management of identified distressed hospitals.  The indicators that will be tracked include days of cash-on-hand and accounts receivable, a hospital's total margin -- and even its willingness to provide the state requested financial information. Hospitals in financial trouble may get a state-appointed monitor (although the hospital must agree to the appointment). Monitors would be paid on a contingency basis from the savings they find. Passed the Senate 38-0 and the Assembly 80-0.
  • -- A2609, Prohibits hospitals from charging uninsured New Jersey residents more than 15% greater than the applicable Medicare rate, unless their family income is more than 5 times greater than the federal poverty rate. Currently that's $54,150 for a single person, $72,850 for a married couple without dependent children and $110,250 for a family of four. Passed 39-0 in the Senate, 71-8 in the Assembly.

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