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 provide a clinically appropriate alternative to outpatient and inpatient care, helping to divert at-risk youth from more costly institutional settings.

The bill outlines the criteria for selecting one eligible applicant to participate in the pilot program, which must demonstrate a solid implementation plan, exclusively serve the target age group, and comply with existing federal and state reimbursement requirements, with the exception that services can be provided outside of a licensed hospital. Additionally, the Commissioner of Human Services is tasked with applying for necessary state plan amendments or waivers to secure federal funding for the program. A report summarizing the program's implementation and recommendations for its future will be submitted to the Governor and Legislature within 36 months of selecting the pilot participant, after which the program will expire.