S4820: Permits licensed hospitals to establish micro-hospitals under certain conditions.

SENATE, No. 4820 STATE OF NEW JERSEY 222nd LEGISLATURE INTRODUCED OCTOBER 15, 2026 Sponsored by: Senator JOHN J. BURZICHELLI District 3 (Cumberland, Gloucester and Salem) SYNOPSIS Permits licensed hospitals to establish micro-hospitals under certain conditions. CURRENT VERSION OF TEXT As introduced. An Act concerning micro-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. The Legislature finds and declares that the conversion or restructuring of existing hospitals into micro-hospitals and the creation of new micro-hospitals may provide an important tool for preserving and ensuring access to healthcare services, particularly in rural and medically underserved communities, by enabling hospitals to maintain essential services in a financially and operationally sustainable manner. 2. a. As used in this act: "Hospital system" means a group of licensed general acute care hospital facilities owned or controlled by the same legal entity. "Micro-hospital" means an acute care facility operated by a licensed general acute care hospital or hospital system in the State, containing no more than 50 acute care beds. A "micro-hospital" shall not be required to maintain operating rooms or provide surgical services. b. A general acute care hospital licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) or the hospital's hospital system may establish a micro-hospital in this State, including but not limited to through conversion, restructuring, or right-sizing of an existing licensed general acute care hospital, provided that the micro-hospital is not located within five miles of another unaffiliated licensed general acute care hospital, except that this subsection shall not apply to the conversion, restructuring, or right-sizing of an existing licensed general acute care hospital. c. Nothing in this act shall be construed as permitting an ambulatory surgical facility that is not a licensed general acute care hospital to establish a micro-hospital. d. A micro-hospital established through the conversion, restructuring, or right-sizing of an existing licensed general acute care hospital shall remain a licensed general acute care hospital, and shall not be deemed a new category of health care facility under State law. Such facility may continue to provide emergency, inpatient, outpatient, diagnostic, laboratory, imaging, and other services authorized by the Department of Health. 3. The Commissioner of Health shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as may be necessary to implement the provisions of this act; however, nothing in this section shall be construed to delay the commissioner's review of an application filed pursuant to this act, prior to the adoption of the rules and regulations. 4. This act shall take effect immediately. STATEMENT This bill permits a licensed general acute care hospital or hospital system to establish a micro-hospital in this State under certain circumstances. Under the bill, a "micro-hospital" means an acute care facility operated by a licensed general acute care hospital or hospital system in the State, containing no more than 50 acute care beds. A "micro-hospital" is not required to maintain operating rooms or provide surgical services. The bill permits a general acute care hospital licensed or the hospital's hospital system to establish a micro-hospital in this State, including but not limited to through conversion, restructuring, or right-sizing of an existing licensed general acute care hospital, provided that the micro-hospital is not located within five miles of another unaffiliated licensed general acute care hospital. This restriction does not apply to the conversion, restructuring, or right-sizing of an existing licensed general acute care hospital. The bill provides that an ambulatory surgical facility that is not a licensed general acute care hospital may not establish a micro-hospital. A micro-hospital established through the conversion, restructuring, or right-sizing of an existing licensed general acute care hospital is to remain a licensed general acute care hospital and is not to be deemed a new category of health care facility under State law. The facility may continue to provide emergency, inpatient, outpatient, diagnostic, laboratory, imaging, and other services authorized by the Department of Health. Finally, the bill requires the Commissioner of Health to adopt rules and regulations as necessary to implement the bill. The bill provides that the absence of implementing regulations is not to delay the commissioner's review of an application filed pursuant to the bill.