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 will require 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 facility participation and identify the measurement tool to be used. The Commissioner of Health, in consultation with a content expert, will determine the number of facilities included in the program, ensuring regional representation across the state.

Funding for the program will come from the State Medicaid program through a value-based payment system, which incentivizes hospitals and birthing centers to improve maternal health care and reduce adverse pregnancy-related experiences. The bill mandates that the DOH submit a report to the Governor and Legislature within four years, analyzing the program's effectiveness, particularly for Black mothers, and providing recommendations for future actions. The commissioner will also seek any necessary State plan amendments or waivers to secure federal financial participation for Medicaid expenditures related to this initiative.