New Jersey-2022-A3597-Introduced

An Act concerning integrated health care at certain community health centers, supplementing Title 26 of the Revised Statutes.

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

1. As used in the act,

"Commissioner" means the Commissioner of Health.

"Community health center" means a federally qualified health center (FQHC), an ambulatory care facility, a certified community behavioral health clinic (CCBHC), a behavioral health program, and a substance use disorder facility.

"Medicaid" means the Medicaid program established pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.).

2. a. The Commissioner of Health, in collaboration with the Commissioner of Human Services, shall establish the Community Health Center Integrated Care Loan Program. The purpose of the loan program shall be to provide zero percent interest, short-term financing loans to community health centers to support the integration of the center's existing health services with an additional modality of care. Eligible modalities of care under the loan program shall include both primary care services and behavioral health care services, including substance abuse disorder treatment services.

b. A community health center that elects to participate in the loan program shall submit an application to the commissioner on a form and in a manner prescribed by the commissioner. The application shall, at a minimum, require the center to provide the following:

(1) a description of the existing health care services offered at the center and of the new modality of care that will be integrated within the center upon receipt of the loan;

(2) a requested loan amount, along with a corresponding budget outlining how the funds will be expended to achieve integration of the new modality of care;

(3) data which demonstrates that the center is in need a financial resources to successfully provide an additional modality of care; and

(4) information on the community health center's patient population.

c. Upon receipt of an application, the commissioner shall review the application and, subject to evaluation and the availability of funds in the Community Health Center Integrated Care Loan Fund, established pursuant to section 2 of this act, award a loan to each approved applicant within 30 days of the receipt of an application. The commissioner, to the maximum extent practicable, shall equitably distribute loans to successful applicants in the northern, central, and southern regions of the State. The commissioner shall give priority to centers that are located in areas with a high Medicaid population, as determined by the commissioner.

d. Loan recipients shall use funds received pursuant to this act for the following purposes associated with the integration of a new modality of care:

(1) staff and training costs;

(2) licensure fees;

(3) infrastructure improvements required to comply with licensure requirements; and

(4) any other costs approved by the commissioner in the application process.

3. a. The Community Health Center Integrated Care Loan Fund is established as a nonlapsing, revolving fund, which shall be administered by the Department of Health. The fund shall be credited with monies received from the General Fund, the federal government, private foundations, or other sources, which may be available to support the Community Health Center Integrated Care Loan Program.

b. The State Treasurer shall be the custodian of the fund, and all disbursements from the fund shall be made by the State Treasurer upon vouchers signed by the commissioner. The monies in the fund shall be invested and reinvested by the Director of the Division of Investment in the Department of the Treasury as are other trust funds in the custody of the State Treasurer in the manner provided by law. Interest received on the monies in the fund shall be credited to the fund.

4. Pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the Commissioner of Health, in collaboration with the Commissioner of Human Services and the State Treasurer, shall adopt rules and regulations to effectuate the purposes of this act.

5. This act shall take effect immediately.

STATEMENT

This bill requires the Commissioner of Health, in collaboration with the Commissioner of Human Services, to establish the Community Health Center Integrated Care Loan Program. The purpose of the loan program is to provide zero percent interest, short-term financing loans to community health centers to support the integration of the center's existing health services with an additional modality of care. Under the bill, a "community health center" means a federally qualified health center (FQHC), an ambulatory care facility, a certified community behavioral health clinic (CCBHC), a behavioral health program, and a substance use disorder facility. Eligible modalities of care will include both primary care services and behavioral health care services, including substance abuse disorder treatment services.

A community health center that elects to participate in the loan program will be required to submit an application to the commissioner on a form and in a manner prescribed by the commissioner. The application, at a minimum, is to require the center to provide the following: 1) a description of the existing health care services offered at the center and of the new modality of care that will be integrated within the center upon receipt of the loan; 2) a requested loan amount, along with a corresponding budget outlining how the funds will be expended to achieve integration of the new modality of care; 3) data which demonstrates that the center is in need a financial resources to successfully provide an additional modality of care; and 4) information on the community health center's patient population.

Upon receipt of an application, the commissioner is to review the application and, subject to evaluation and the availability of funds in the Community Health Center Integrated Care Loan Fund, award a loan to each approved applicant within 30 days of the receipt of an application. The bill establishes the Community Health Center Integrated Care Loan Fund as a non-lapsing revolving fund that will be credited with monies received from the General Fund as well as any monies available from the federal government, private foundations, or other sources. The commissioner, to the maximum extent practicable, is required to equitably distribute loans to successful applicants in the northern, central, and southern regions of the State and give priority to centers that are located in areas with a high Medicaid population, as determined by the commissioner.

Loan recipients are required to use the funds for the following purposes associated with the integration of a new modality of care: 1) staff and training costs; 2) licensure fees; 3) infrastructure improvements required to comply with licensure requirements; and 4) any other costs approved by the commissioner in the application process.

Research demonstrates that integrating physical and behavioral health care services enhances access to services, improves quality of care and patient outcomes, and lowers overall health care costs. However, funding constraints often make the shift to integrated care difficult for community health centers that lack the capital to make the initial staffing and infrastructure investments needed to comply with the additional licensure requirements. It is the sponsor's goal that this loan program will provide the opportunity to the State's health care providers, who serve the most vulnerable residents, to offer the benefits of integrated care to their patients.