The New Jersey Mental Health Residential Reform Treatment Act aims to address the growing crisis of mental health and substance use disorders in the state, particularly among adolescents and adults. The bill recognizes the shortage of mental health professionals and the limitations of current inpatient services, which are primarily hospital-based and focused on short-term stabilization. To fill the critical gap in care, the act establishes a licensure pathway for non-hospital based inpatient residential mental health treatment facilities that will provide mid-to-long-term treatment lasting 45 to 120 days. These facilities will offer comprehensive services, including medication management, skill-based therapies, and holistic approaches, thereby improving access to care and reducing the strain on hospital systems.

The act outlines specific licensure requirements for these facilities, including accreditation, minimum staffing ratios, mandatory staff training, and comprehensive treatment plans. It also mandates regular inspections and public reporting to ensure compliance with high standards of care. Additionally, the bill proposes the establishment of a Mental Health Workforce Development Program to address the shortage of licensed professionals through training grants, loan forgiveness, and salary incentives. By integrating these new facilities into the state's mental health service continuum and coordinating with insurance providers, the act aims to enhance the overall mental health care landscape in New Jersey, ultimately leading to better patient outcomes and reduced hospital admissions.