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, particularly affecting Black mothers during childbirth. The program will involve selected maternity care hospitals and licensed birthing centers that will utilize a perinatal quality improvement measurement tool to identify and report instances of obstetric discrimination as adverse events. The DOH will facilitate the application process for participation and determine the measurement tool to be used. The Commissioner of Health will select at least one participating facility from each of New Jersey's northern, central, and southern regions, and the program will be funded through the State Medicaid program using a value-based payment system.

Additionally, the bill outlines that the value-based payment methodology will cover training costs for staff on obstetric discrimination and the implementation of the measurement tool. Participating facilities may retain unspent payment funds if they successfully reduce adverse pregnancy-related experiences linked to obstetric discrimination. A report evaluating the program's effectiveness and providing recommendations for future actions will be submitted to the Governor and Legislature four years after the program's establishment. The commissioner is also responsible for applying for any necessary State plan amendments or waivers to ensure the bill's provisions are implemented effectively and to secure federal financial participation for State Medicaid expenditures.