Healthy New Jersey

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Health Care Financing

Health Care Facility Assessments Unit

The Health Care Facility Assessments Unit is responsible for oversight, management, and collection of assessment calculations, as well as associated audits and appeals.

Contact Information

Phone:
609-376-8530

Email:
aap@doh.nj.gov

Address:
New Jersey Department of Health
Office of Health Care Financing
ATTN: Health Care Facility Assessments Unit
55 N. Willow St. 5th Floor
P.O. Box 360
Trenton, New Jersey 08625

Ambulatory Care Facilities (ACFs)

The unit administers the collection of the assessment on certain ACFs pursuant to N.J.S.A.26:2H-57.

Pursuant to N.J.S.A 26:2H-18.57, each licensed facility offering certain types of ambulatory care services is required to submit an annual financial report (HFEL-5) that is used to determine the facility’s annual assessment. The assessment is equal to 2.95% of the gross receipts, except that any facility with less than $300,000 in gross receipts is exempt from the assessment and there is a cap of $350,000 per assessment per facility. For more information, please see the full text of the applicable statutes and regulations.

  • Forms

Form HFEL-5: Financial Report for Licensed ACFs Subject to the Ambulatory Assessment.

Instructions for completing form HFEL-5.

  • Licensing Portal

ACFs can submit their HFEL-5 reports to Certificate of Need and Licensing via the department's licensing portal.
Visit Portal

$10 Adjusted Admission Assessment

Pursuant to P.L.2018, c. 116 (C.26:2H-18.57), the Department of Health shall assess each general hospital, specialty heart hospital, rehabilitation hospital, and long-term acute care hospital a per adjusted admission charge of $10. To make this assessment, the Department requires each acute care hospital and specialty heart hospital to submit an ACH Cost Report and each rehabilitation hospital and long-term acute care hospital to submit an ARR annually.

Please be aware that failure to report in accordance with applicable state statutes and regulations may result in a daily penalty being assessed past the submission due date. (N.J.S.A.25:2H-18.57;N.J.A.C.8:31B-1 et seq.; N.J.A.C.8:43E-1 et seq.). In addition, intentional misrepresentation or falsification of any information contained within this cost report may result in civil and criminal penalties.

0.53% Assessment

Pursuant to N.J.A.C. 8:31B-3.6(a), “[e]ach general hospital and each specialty heart hospital shall be assessed annually on a State fiscal year basis 0.53 percent of its total operating revenue as reported in its most recent NJ Acute Care Hospital Cost Report. The amount assessed for each hospital annually shall be prorated by the Department so that the total assessed for all hospitals annually does not exceed $ 40,000,000. Hospitals shall pay the prorated assessed amount to the Department in 12 equal monthly installments.

1. The hospital's total operating revenue shall include revenue from any ambulatory care facility licensed to the hospital as a hospital-based off-site ambulatory care services facility.

2. In the event that a hospital, which fails to submit the most recent Acute Care Hospital Cost Report due on June 30 of each year, has not submitted that report prior to the Department's calculation of the assessment for the following year, the Department shall use the hospital's most recent assessment, increased by 15 percent, for the calculation of the following year's assessment.

Pursuant 8:31B-3.6(b), [i]f a hospital subject to the 0.53 percent assessment is granted a certificate of need to close and subsequently ceases operations as a general or specialty heart hospital, the hospital's assessment shall be reduced to cover the period of time between the start of the State fiscal year and the closure of the hospital.

1. The difference between the original and reduced assessment for the closed hospital shall be reallocated proportionately among all remaining hospitals, so that the total assessment on all hospitals during the State fiscal year remains $ 40,000,000.

$35 Health Care Quality Fee

Pursuant to P.L.1996, c.102 (C.26:2H-7.7), acute care hospitals with a subacute care unit, as licensed by the Department, are subject to the following fee:

  • “If an acute care hospital which has a subacute care unit plans to transfer a patient from the hospital to the subacute care unit, the hospital shall discharge the patient from the hospital and admit the patient to the subacute care unit. Each admission to a subacute care unit shall be subject to a $35 health care quality fee to be paid to the Department…”

In addition, acute care hospitals with a subacute care unit, as licensed by the Department, must also submit an annual report to the Department. For more information, please review the details available on the Hospital Financial Reports Unit webpage.

 


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