N.J. Admin. Code § 8:96-5.1

Current through Register Vol. 56, No. 12, June 17, 2024

Section 8:96-5.1 - Ownership interests of hospitals, management companies, and related organizations

(a) In addition to providing the information required pursuant to N.J.A.C. 8:43G-5.1(a), (b), (c), and (d), each hospital shall provide the Department, and post on its publicly available website, its organizational chart, which shall include the identity of any owner or related organization, along with the full name, address, and Federal tax-exempt status of each related organization, be it an entity or person.

(b) If the hospital is owned or managed by a for-profit organization, including an entity that has a majority ownership interest in the hospital, the hospital shall, by January 4, 2024 and thereafter, upon the filing of an application for the issuance or renewal of a license, provide to the Department:

1. The full name, location, mailing address, email address, and telephone number of each owner along with the respective percentage of each ownership interest;

2. The identity of any interested persons of the hospital that do business with the hospital or any management company providing services to the hospital that maintain any offices, employees, or agents outside the United States and any revenues and expenses of more than $ 10,000 transacted outside the United States;

3. A list of investors and joint ventures between the hospital's interested persons and its investors, including the name of the joint venture entity, whether that entity is for-profit or nonprofit, a description of its primary activity, and the percent of profit or stock ownership held by each of the owners, officers, directors, physicians, and key employees of the hospital;

4. The name, mailing address, email address, and phone number of any management company paid to provide services to the hospital in excess of five percent net patient service revenue for the prior fiscal year, along with the primary activity of the company, and the percent of equity or stock ownership held by each of the interested persons of the hospital in the management company;

5. Any amount paid to any related organization or person for management or consulting services;

6. A description of any trust that holds greater than a five percent interest in the hospital, including the name(s), mailing address(es), email address(es), and telephone number(s) of the trustee(es), beneficial owner(s), and grantor(s) or settlor(s) of the trust, and a copy of the full trust agreement;

7. A list of any real property for which the hospital has claimed a tax-exemption or tax abatement, and any agreements with a governmental entity for a payment in lieu of taxes; and

8. Each year, within 180 days of the end of the fiscal year, if the hospital had revenues in excess of expenses for the prior fiscal year, the total amount of any such revenues in excess of expenses used for each of the following: debt retirement, plant or facility expansion, renovation or maintenance, or a reserve for operating contingencies.

(c) Within 45 days of any changes in owners, interested persons engaging in business transactions with the hospital, investors, and joint ventures between hospitals and interested persons, management companies, related organizations, trusts, or tax-exempted or tax-abated properties described at (a) and (b)1 through 7 above, a written notice identifying such changes, including any respective changes to the additional information required by such subsection.

N.J. Admin. Code § 8:96-5.1

Adopted by 55 N.J.R. 2335(b), effective 11/20/2023