Section: Regulations prescribed by commissioner relative to appointment of monitor.
2. a. The Commissioner of Health and Senior Services shall prescribe, by regulation: (1) specific indicators by which a general hospital may be evaluated for financial soundness, and the thresholds at which it may be considered to be in financial distress or at risk of being in financial distress; and (2) the progressive levels of monitoring and department participation in the development and oversight of corrective measures to resolve a general hospital's financial or potential financial difficulties, including the various levels of involvement by an appointed monitor. The indicators and progressive levels of monitoring and intervention shall be guided by the indicators and levels of monitoring and intervention identified in the final report of the New Jersey Commission on Rationalizing Health Care Resources, issued on January 24, 2008.
b. The thresholds of specified financial indicators and corresponding Department of Health and Senior Services involvement that may be triggered by them shall include, but are not limited to, measures relating to:
(1) days cash-on-hand;
(2) cushion ratio;
(3) days in accounts receivable;
(4) average payment period;
(5) total margin;
(6) earnings before depreciation; and
(7) any other factor which the commissioner deems appropriate, including failure to provide required or requested financial information.
c. If the commissioner determines that a hospital is in financial distress or at risk of being in financial distress after considering the specified financial indicators set forth in subsection b. of this section, then the commissioner may appoint, in consultation with the hospital, a monitor to prevent further financial deterioration. Payment for the monitor shall be determined through a contingency contract established between the hospital and the monitor. The contract shall be subject to approval by the department with regard to the monitor's responsibilities. In no case shall a hospital bear financial liability if no savings result from measures undertaken pursuant to the contract.
The appointed monitor shall have demonstrated expertise in hospital administration, management or operations. A monitor: (1) shall be authorized to attend all hospital board meetings, executive committee meetings, finance committee meetings, steering committee meetings, turnaround committee meetings, or any other meetings concerning the hospital's fiscal matters; (2) may be authorized to have voting and veto powers over actions taken in the above mentioned meetings; (3) shall report to the commissioner and the full hospital board of trustees in a manner prescribed by the commissioner; and (4) shall serve for such period of time as may be determined by the commissioner in consultation with the hospital.
The commissioner shall maintain continuing oversight of the actions and recommendations of the monitor to ensure that the public interest is protected.
L.2008, c.58, s.2.
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