The proposed bill establishes a three-year Obstetric Discrimination Prevention and Mitigation Pilot Program within the New Jersey Department of Health (DOH) to address obstetric discrimination in maternity care. The program aims to recognize and report obstetric discrimination as an adverse event, assess its impact on Black mothers' birthing experiences, and improve maternal health care during childbirth. Participating hospitals and birthing centers will be required to train their staff on obstetric discrimination and the use of a perinatal quality improvement measurement tool, which the DOH will identify. Funding for the program will come from the State Medicaid program through a value-based payment system, covering training and patient recruitment costs.

Additionally, the bill mandates the DOH to prepare a report four years after the program's establishment to analyze its impact and provide recommendations for future actions. The program will select at least one maternity care hospital or birthing center from each of the northern, central, and southern regions of the state, with the commissioner determining the value-based payment rate. If participating facilities successfully reduce adverse pregnancy-related experiences linked to obstetric discrimination, they may retain any unspent payment funds. The commissioner is also responsible for applying for any necessary State plan amendments or waivers to implement the bill's provisions and secure federal financial participation for State Medicaid expenditures.