This bill aims to enhance the assessment and regulation of nursing homes in New Jersey by establishing minimum standards for evaluating the physical and mental well-being of residents, as well as operational metrics of the facilities. The Department of Health (DOH) is tasked with developing these standards, which will be reviewed annually by both the DOH and the Department of Human Services (DHS) to ensure their effectiveness. In cases where a nursing home receives a one-star rating from the federal Centers for Medicare and Medicaid Services (CMS) or fails to meet at least two of the established standards, the DHS will implement a series of escalating sanctions, including warnings, restrictions on new admissions, and potential removal of current residents.

Additionally, nursing homes that consistently underperform will be required to submit an improvement plan detailing steps to address quality issues. Failure to comply with these requirements will result in ineligibility for Medicaid reimbursement. The bill also emphasizes the importance of collaboration between the DHS and DOH in evaluating nursing home performance and mandates annual reporting to the Governor and Legislature on the implementation and effectiveness of the new regulations. Overall, the legislation seeks to ensure better health, safety, and quality of care for nursing home residents while maintaining the authority of regulatory agencies.