The New Jersey Mental Health Residential Reform Treatment Act aims to address the growing mental health crisis in the state by establishing a licensure pathway for non-hospital based inpatient residential mental health treatment facilities for adolescents and adults. These facilities will provide mid-to-long-term treatment lasting 45 to 120 days, which includes medication management, skill-based therapies, and holistic, trauma-based services. This initiative is designed to fill the critical gap in care that currently exists due to the exclusive reliance on hospital settings for mental health services, which primarily focus on short-term stabilization. The act also seeks to alleviate the shortage of mental health professionals affecting approximately 40,000 residents, thereby improving access to comprehensive care and reducing long-term costs associated with untreated mental illness.

To ensure the quality and safety of these new facilities, the act outlines rigorous licensure requirements, including accreditation by recognized bodies, minimum staffing ratios, mandatory staff training, and comprehensive treatment plans for patients. The Division of Mental Health and Addiction Services, in collaboration with the Department of Health, will oversee the licensing process and provide technical assistance to prospective facility operators. Additionally, the act establishes a Mental Health Workforce Development Program to address the shortage of licensed professionals through grants, loan forgiveness, and salary incentives. By integrating these 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.