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 (DHS) to enhance the availability of partial hospitalization services for children aged five to 14. The program aims to provide reimbursement under the NJ FamilyCare program for services delivered at non-hospital locations, addressing the current limitation that requires such services to be provided in a hospital setting. The bill recognizes the need for more flexible care options for children with mental health disorders, allowing them to receive intensive treatment while maintaining a sense of independence and connection to their families.

The pilot program will select one eligible applicant that meets specific criteria, including having a plan for implementation and exclusively providing services to the target age group. The applicant must also comply with existing federal and state reimbursement requirements, with the exception that services can be delivered outside of a licensed hospital. The DHS is tasked with submitting a report to the Governor and Legislature within 36 months of selecting the pilot participant, summarizing the program's implementation and offering recommendations for its future. The program is set to expire 36 months after the selection of the participant.