This 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 will utilize a perinatal quality improvement measurement tool and requires participating maternity care hospitals and licensed birthing centers to recognize and report obstetric discrimination as an adverse event. The DOH will develop a process for participation and identify the measurement tool to be used. The Commissioner of Health, in consultation with a content expert, will select at least one hospital or birthing center from each of New Jersey's northern, central, and southern regions to participate in the program.

Funding for the program will come from the State Medicaid program through a value-based payment system, which will cover training costs related to obstetric discrimination and the implementation of the measurement tool. The bill also mandates that the DOH submit a report to the Governor and Legislature within four years, evaluating the program's effectiveness and providing recommendations for future actions. Additionally, the commissioner is responsible for applying for any necessary State plan amendments or waivers to implement the bill's provisions and secure federal funding for State Medicaid expenditures.