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  • NJ A4146
  • Provides for monitoring and evaluation of transition of mental health and substance use disorder treatment service system and developmental disability system to fee-for-service reimbursement model; makes appropriation.*
Introduced
(9/19/2016)
In Committee
(1/30/2017)
Crossed Over
(2/13/2017)
Passed
(2/15/2017)
Signed
(5/11/2017)
Dead/Failed/Vetoed
2016-2017 Regular Session
This bill would establish a formal system of oversight for the planned transition by community-based mental health and substance use disorder treatment service providers to a fee-for-service reimbursement model. The bill would establish two oversight mechanisms: (1) an Independent Fee-for-Service Transition Oversight Board; and (2) a contracted evaluator with demonstrated competence in developing and evaluating reimbursement systems for state health care programs. The Division of Mental Health and Addiction Services (DMHAS) in the Department of Human Services has historically used a cost reimbursement system to provide most State-level funding for community-based mental health and substance use disorder treatment services in New Jersey. The DMHAS has begun to transition most community-based mental health and substance use disorder treatment services from a cost reimbursement system to a fee-for-service reimbursement system, beginning in July 2016, and plans to require all providers to complete the transition by July 2017. Independent Fee-for-Service Transition Oversight Board The Independent Fee-for-Service Transition Oversight Board would be comprised of 11 members, appointed by the Governor, as follows: two representatives of provider entities that receive State funds for mental health services; two representatives of provider entities that receive State funds for substance use disorder treatment services; a certified public accountant, upon the recommendation of the New Jersey Society of Certified Public Accountants (NJCPA); a current consumer of State-funded mental health services, or the parent or guardian of such consumer; a current consumer of State-funded substance use disorder treatment services, or the parent or guardian of such consumer; one person, upon the recommendation of the New Jersey chapter of the National Association on Mental Illness (NAMI); one person, upon the recommendation of the New Jersey Association of Mental Health and Addiction Agencies (NJAMHAA); one person, upon the recommendation of the New Jersey Psychiatric Rehabilitation Association; and one person, upon the recommendation of the New Jersey Hospital Association. The members of the board are to be appointed within 45 days after the bill's effective date, and the board is to hold its initial organizational meeting as soon as practicable, but no later than 30 days, after the appointment of its members. The members of the board would serve without compensation, but may be reimbursed for travel and other necessary expenses incurred in the performance of their duties, within the limits of funds appropriated or otherwise made available to the board for its purposes. The DHS would be required to provide professional and clerical staff to the board, and the board would also be entitled to call upon the services of any other State, county, or municipal department, board, commission, or agency, as may be available to it for its purposes. In executing its duties, the board will be required to consult with the community-based mental health and substance use disorder treatment providers that are being affected by the transition to a fee-for-service reimbursement model. The board's evaluation of the transition is to primarily focus on the transition's effects on access to care, continuity of care, and quality of care. In order to determine the effect of the transition on these measures, the board is to consider information included in reports issued by the contractor pursuant to the bill, and may also independently evaluate providers' costs, revenues, revenue shortfalls, and other needs including technical assistance, training, and business infrastructure needs that are affected by the transition, and how these factors affect providers' ability to serve their patients. The board may make recommendations to the contracted evaluator with regard to its evaluation. The bill would require the board to submit written status reports to the Legislature, the Governor, and the DMHAS, at the following intervals: (1) an initial status report is to be submitted six months after the board's organizational meeting; (2) an interim status report is to be submitted one year after the board's organizational meeting; and (3) a final status report is to be submitted two years after the board's organizational meeting. The board would dissolve 30 days after the board's final report is submitted. Contracted Evaluator Separately from the Independent Fee-for-Service Transition Oversight Board, the bill also requires the Division of Purchase and Property in the Department of the Treasury, in consultation with the Department of Human Services and the New Jersey Association of Mental Health and Addiction Agencies, to issue a request for proposals to perform an independent evaluation of the transition of the mental health and substance use disorders treatment service system to fee-for-service. The evaluation will assess the impact of the transition and the particular rates adopted in the fee-for-service system on the financial sustainability of provider agencies, and on patients' access to care, continuity of care, and quality of care. Proposals will be submitted no later than April 1, 2017. The criteria for selection are to include, but need not be limited to, demonstrated competence in developing and evaluating reimbursement systems for state health care programs. The contract would begin no later than July 1, 2017. The contractor will issue periodic written reports to the Legislature, the Governor, the Division of Mental Health and Addiction Services in the Department of Human Services, and the Independent Fee-for-Service Transition Oversight Board. At minimum, the contractor will issue written reports evaluating the transition for the following reporting periods: (1) the start of the transition through September 30, 2017; (2) October 1, 2017 through December 31, 2017; (3) January 1, 2018 through June 30, 2018; and (4) July 1, 2018 through June 30, 2019. Each report shall be submitted no later than one month following the end of each reporting period. The contract will terminate after the submission of the final report. The bill would expire on the later of: (1) the 30th day after the board submits its final report pursuant to subsection b. of section 3 of this act or (2) the 30th day after the contractor submits its final report pursuant to subsection c. of section 4 of this act.
2nd Reading in Assembly to Concur with Senate Amendments, 2nd Reading in the Assembly, 2nd Reading in the Senate, Bills and Joint Resolutions Signed by the Governor, Human Services, Passed Assembly, Passed both Houses, Passed Senate
Approved P.L.2017, c.85.  (on 5/11/2017)
 
 
Date Chamber Action Description
5/11/2017 A Approved P.L.2017, c.85.
2/15/2017 A Passed Assembly (Passed Both Houses) (68-2-0)
2/15/2017 A Received in the Assembly, 2nd Reading on Concurrence
2/13/2017 S Passed by the Senate (37-0)
2/13/2017 S Emergency Resolution (36-0) (Vitale)
2/13/2017 S Senate Amendment (34-0) (Vitale)
2/13/2017 S Substituted for S2521 (2R)
1/30/2017 S Reported from Senate Committee, 2nd Reading
1/30/2017 S Received in the Senate, Referred to Senate Budget and Appropriations Committee
1/30/2017 Senate Budget and Appropriations Hearing (19:00 1/30/2017 A-4146 (2R) is pending referral.)
1/30/2017 Senate Budget and Appropriations Hearing (13:00 1/30/2017 Committee Room 4, 1st Floor)
1/23/2017 A Passed by the Assembly (66-2-1)
12/15/2016 A Reported out of Assembly Comm. with Amendments, 2nd Reading
12/15/2016 Assembly Appropriations Hearing (13:00 12/15/2016 Committee Room 11, 4th Floor)
11/14/2016 A Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee
11/14/2016 Assembly Human Services Hearing (13:30 11/14/2016 Committee Room 16, 4th Floor)
9/19/2016 A Introduced, Referred to Assembly Human Services Committee
Date Motion Yea Nay Other
Detail 2/15/2017 Assembly Floor: Concur in Senate Amendments 68 2 10
Detail 2/13/2017 Senate Floor: Amend 34 0 6
Detail 2/13/2017 Senate Floor: Second Reading (Voice Vote) 0 0 0
Detail 2/13/2017 Senate Floor: Third Reading - Final Passage 37 0 3
Detail 2/13/2017 Senate Floor: Substitute For S2521 (Voice Vote) 0 0 0
Detail 2/13/2017 Senate Floor: Enact Emergency Clause 36 0 4
Detail 1/30/2017 Senate Budget and Appropriations Committee: Reported Favorably 13 0 0
Detail 1/23/2017 Assembly Floor: Third Reading - Final Passage 66 2 12
Detail 12/15/2016 Assembly Appropriations Committee: Reported with Amendments 9 0 2
Detail 11/14/2016 Assembly Human Services Committee: Reported with Amendments 5 0 1