This bill establishes the Children's Partial Hospitalization Pilot Program within the Division of Medical Assistance and Health Services in the Department of Human Services. The program aims to expand access to partial hospitalization services for children aged five to 14 by allowing reimbursement under the NJ FamilyCare program for services provided at non-hospital locations. Currently, NJ FamilyCare requires that these services be delivered in a hospital setting, which limits access for many children in need. The pilot program seeks to address this gap by permitting reimbursement for services delivered outside of a hospital, thereby providing a clinically appropriate alternative to both outpatient and inpatient care.

The bill outlines the criteria for selecting an eligible applicant to participate in the pilot program, which includes demonstrating a plan for implementation, exclusively providing services to the target age group, and meeting existing federal and state reimbursement requirements, with the exception of the location of service delivery. The selected applicant must also seek approval from the Department of Children and Families as a provider within the Children's System of Care. A report summarizing the program's implementation and recommendations for its continuation must be submitted to the Governor and Legislature within 36 months of selecting the participant, after which the pilot program will expire.