N.J.S.A. 26:2H-7 — Certificate of need required for construction, expansion of health care facility.

26:2H-7 Certificate of need required for construction, expansion of health care facility. 7. No health care facility shall be constructed or expanded, and no new health care service shall be instituted after the effective date of P.L.1971, c.136 (C.26:2H-1 et seq.) except upon application for and receipt of a certificate of need as provided by P.L.1971, c.136 (C.26:2H-1 et seq.). No agency of the State or of any county or municipal government shall approve any grant of funds for, or issue any license to, a health care facility which is constructed or expanded, or which institutes a new health care service, in violation of the provisions of P.L.1971, c.136 (C.26:2H-1 et seq.). Except as provided in section 19 of P.L.1992, c.160 (C.26:2H-7a) and section 16 of P.L.1998, c.43 (C.26:2H-7c), the provisions of this section shall apply to: a. The initiation of any health care service as provided in section 2 of P.L.1971, c.136 (C.26:2H-2); b. The initiation by any person of a health care service which is the subject of a health planning regulation adopted by the Department of Health; c. The purchase by any person of major moveable equipment whose total cost is over $2 million; d. The expenditure by a licensed health care facility of over $2 million for construction of a new health care facility; and e. The construction of a facility by any person, whose total project cost exceeds $2 million, if the facility-type is the subject of a health planning regulation adopted by the Department of Health. The commissioner may periodically increase the monetary thresholds established in this section, by regulation, to reflect inflationary increases in the costs of health care equipment or construction. For the purposes of this section, "health care service" shall include any service which is the subject of a health planning regulation adopted by the Department of Health, and "person" shall include a corporation, company, association, society, firm, partnership, and joint stock company, as well as an individual. A physician who initiates a health care service which is the subject of a health planning regulation or purchases major moveable equipment pursuant to subsection b. or c. of this section, may apply to the commissioner for a waiver of the certificate of need requirement if: the equipment or health care service is such an essential, fundamental, and integral component of the physician's practice specialty, that the physician would be unable to practice his specialty according to the acceptable medical standards of that specialty without the health care service or equipment; the physician bills at least 75% of his total amount of charges in the practice specialty which uses the health care service or equipment; and the health care service or equipment is not otherwise available and accessible to patients, pursuant to standards established by the commissioner, by regulation. The commissioner shall make a determination about whether to grant or deny the waiver, within 120 days from the date the request for the waiver is received by the commissioner and shall so notify the physician who requested the waiver. If the request is denied, the commissioner shall include in that notification the reason for the denial. If the request is denied, the initiation of a health care service or the purchase of major moveable equipment shall be subject to the certificate of need requirements pursuant to this section. A health maintenance organization which furnishes at least basic comprehensive care health services on a prepaid basis to enrollees either through providers employed by the health maintenance organization or through a medical group or groups which contract directly with the health maintenance organization, which initiates a health care service, or constructs a health care facility pursuant to subsection a., b., d., or e. of this section, may apply to the commissioner for a waiver of the certificate of need requirement if: the initiation of the health care service or the construction is in the best interests of State health planning; and the health maintenance organization is in compliance with the provisions of P.L.1973, c.337 (C.26:2J-1 et seq.) and complies with the provisions of subsection d. of section 3 of P.L.1973, c.337 (C.26:2J-3) regarding notification to the commissioner. The commissioner shall make a determination about whether to grant or deny the waiver within 45 days from the date the request for the waiver is received by the commissioner and shall so notify the health maintenance organization. If the request for a waiver is denied on the basis that the request would not be in the best interests of State health planning, the commissioner shall state in that notification the reason why the request would not be in the best interests of State health planning. If the request for a waiver is denied, the health maintenance organization's initiation of a health care service or construction project shall be subject to the certificate of need requirements pursuant to this section. The requirement to obtain a certificate of need for major moveable equipment pursuant to subsection c. of this section shall not apply if a contract to purchase that equipment was entered into prior to July 1, 1991. L.1971, c.136, s.7; amended 1991, c.187, s.30; 1992, c.160, s.24; 1998, c.43, s.6; 2012, c.17, s.169. 26:2H-7a Exemptions from certificate of need requirement. 19. Notwithstanding the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) to the contrary, the following are exempt from the certificate of need requirement: Community-based primary care centers; Outpatient drug and alcohol services; Hospital-based medical detoxification for drugs and alcohol; Ambulance and invalid coach services; Mental health services which are non-bed related outpatient services; Full service diagnostic catheterization services, primary angioplasty services, and elective angioplasty services in accordance with a license issued under section 2 of P.L.2021, c.18 (C.26:2H-7.23); Residential health care facility services; Dementia care homes; Capital improvements and renovations to health care facilities; Additions of medical/surgical, adult intensive care and adult critical care beds in hospitals; Inpatient special psychiatric beds used solely for services for patients with co-occurring mental health and substance use disorders; Replacement of existing major moveable equipment; Inpatient operating rooms; Alternate family care programs; Hospital-based subacute care; Ambulatory care facilities; Comprehensive outpatient rehabilitation services; Special child health clinics; New technology in accordance with the provisions of section 18 of P.L.1998, c.43 (C.26:2H-7d); Transfer of ownership interest except in the case of an acute care hospital; Change of site for approved certificate of need within the same county; Additions to vehicles or hours of operation of a mobile intensive care unit; Relocation or replacement of a health care facility within the same county, except for an acute care hospital; Continuing care retirement communities authorized pursuant to P.L.1986, c.103 (C.52:27D-330 et seq.); Magnetic resonance imaging; Adult day health care facilities; Pediatric day health care facilities; Chronic or acute renal dialysis facilities; and Transfer of ownership of a hospital to an authority in accordance with P.L.2006, c.46 (C.30:9-23.15 et al.). L.1992, c.160, 19; amended 1998, c.43, s.7. 2006, c.46, s.10; 2015, c.125, s.2; 2017, c.94; 2021, c.18, s.4. 26:2H-7c Exemptions from certificate of need requirement. 16. a. Notwithstanding the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) to the contrary, 20 months after the effective date of P.L.1998, c.43 the following shall be exempt from the certificate of need requirement: Extracorporeal shock wave lithotripter; Hyperbaric chamber; Positron emission tomography; Residential drug and alcohol services; Ambulatory surgical facilities; Basic obstetric and pediatric services and birth centers, including additions of basic obstetric and pediatric beds in hospitals; and Linear accelerator, including Cobalt 60 unit. b. Notwithstanding the provisions of subsection a. of this section to the contrary, if the Commissioner of Health determines that Department of Health licensing standards for a health care service or facility listed in subsection a. of this section have been adopted by regulation of the department pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the commissioner may exempt the health care service or facility from the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) prior to the 20-month period established in subsection a. of this section. The commissioner shall publish notice of any exemptions established pursuant to this subsection in the New Jersey Register and provide for 45 days' public notice prior to the effective date of the exemption. c. In the case of any health care service or facility that is not exempted from the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) pursuant to this section or section 19 of P.L.1992, c.160 (C.26:2H-7a) and is not subject to expedited review, the commissioner shall publish a call schedule for the initiation of the services or facilities within 90 days of the date of enactment of this act. In the event that the commissioner determines that there is insufficient need to support the initiation of the service or facility, the commissioner is authorized to cancel the call. The commissioner shall provide public notice of the cancellation at least 45 days prior to the scheduled call date. L.1998, c.43, s.16; amended 2012, c.17, s.170. 26:2H-7d Certain health care equipment exempt. 18. Notwithstanding the provisions of P.L.1971, c.136 (C.26:2H-1 et seq.) to the contrary, health care equipment which involves new technology that is not identified in N.J.A.C.8:33 et seq., shall not be subject to certificate of need requirements and may be initiated in the State in accordance with the requirements of this section. a. The new technology shall be directly related to a health care service for which the provider is already licensed and has obtained a certificate of need, when required. b. The provider shall notify the Commissioner of Health about the intent to initiate the new technology at least 60 days prior to the date the provider will begin use of the technology. c. The new technology shall have pre-market approval from the federal Food and Drug Administration. d. The provider shall use the new technology in accordance with guidelines approved by The Joint Commission until such time as the Department of Health has adopted licensing standards for the new technology. The provider shall be required to comply with the department's licensing standards for the new technology upon adoption of the standards. e. The provider shall agree to submit to the department appropriate patient information and other data concerning use of the new technology to assist the department in establishing licensing standards. The provider shall submit the information and other data on a quarterly basis until such time as licensing standards are adopted for the new technology. f. The commissioner may suspend a provider's use of the new technology if he determines that the provider is not in compliance with the requirements of this section. L.1998, c.43, s.18; amended 2012, c.17, s.171.

This is the verbatim text of N.J.S.A. 26:2H-7, retrieved from the New Jersey Legislature's public statute corpus. Statutes are amended periodically — for the most current version, check the external source link above. Kyzer is not a law firm and this page is not legal advice.