Rutgers Law

New Jersey Statutes, Title: 26, HEALTH AND VITAL STATISTICS

    Chapter 2h: Declaration of public policy

      Section: 26:2h-42.1: Identification of nursing homes in financial distress, risk of bankruptcy.

          5. The Department of Health shall as necessary, with assistance from the Department of Human Services, identify nursing homes that may be in acute financial distress or at risk of filing for bankruptcy protection by requiring each nursing home to report, within five business days, any default in the punctual payment when due of any: debt service payment where the debt is secured by real estate or assets of the nursing home; rent payment; payroll; or payroll tax obligation. The department may, as appropriate:

a. provide, at the nursing home's expense, or direct such nursing home to management support services and resources, as well as any other supports as may be necessary and appropriate to avoid bankruptcy proceedings or cessation of operations;

b. if the nursing homes does not take sufficient and timely action to avoid an impending bankruptcy or closure, and if the department finds the bankruptcy or closure would have a significant adverse effect on the health, safety, and welfare of the residents of the nursing home or would leave the area in which the nursing home is located lacking sufficient nursing home services after assessing the need for and availability of other nursing home services in the area, initiate proceedings in a court of competent jurisdiction for the appointment of a receiver for the nursing home, which receiver shall have the powers and authorities conferred by the order of receivership, which may include, but shall not be limited to, the authority to:

(1) hire any consultants or to undertake any studies of the nursing home the receiver deems appropriate;

(2) make any repairs or improvements as are necessary to ensure the safety of nursing home residents and staff;

(3) hire or discharge any employees, including the administrator or manager of the nursing home;

(4) receive or expend in a reasonable and prudent manner the revenues of the nursing home due on the date of the entry of the order of receivership and to become due under such order;

(5) continue the business of the nursing home and the care of the residents of the nursing home in all its aspects;

(6) do all acts necessary or appropriate to conserve the property and promote the health, safety, and welfare of the residents of the nursing home; and

(7) exercise such other powers as the receiver deems necessary or appropriate to implement the court order; and

c. Take such other steps and actions as may be available to ensure continuity of care for, and the safety of, residents of the nursing home.

L.2021, c.95, s.5.

This section added to the Rutgers Database: 2021-07-06 15:55:22.

Older versions of 26:2h-42.1 (if available):

Court decisions that cite this statute: CLICK HERE.