A6045

A Supplement to the annual appropriations act for the fiscal year ending June 30, 2026, P.L.2025, c.74.

Be It Enacted by the Senate and the General Assembly of the State of New Jersey:

1. In addition to the amounts appropriated under P.L.2025, c.74, the annual appropriations act for the fiscal year ending June 30, 2026, there is appropriated from the General Fund the following amount for the purpose specified:

46 DEPARTMENT OF HEALTH

20 Physical and Mental Health

22 Health Planning and Evaluation

GRANTS-IN-AID

07-4270 Health Care Systems Analysis........................... $25,000,000

Total Grants in Aid appropriation,

Health Planning and Evaluation .................... $25,000,000

Grants-in-Aid:

07 Hudson Regional Health..................... ($25,000,000)

The amount hereinabove appropriated for Hudson Regional Health shall be used exclusively to support Heights University Hospital. As a condition of receiving these State funds, Hudson Regional Health shall agree to the provisions of this paragraph. Upon receipt of the funds, Hudson Regional Health shall: 1) maintain continuous operation of Heights University Hospital and shall not suspend, discontinue, or otherwise cease the provision of any hospital service provided upon the date on which the funds are received; 2) provide the Department of Health with Heights University Hospital’s quarterly financial reports, as well as any other information required by the Commissioner of Health; 3) appoint a State representative as a non-voting member to the Heights University Hospital’s governing body; and 4) ensure that Heights University Hospital complies with the provisions of P.L.2022, c.101 (C.34:11-4.15), if a change of control occurs. In the event that Heights University Hospital suspends, discontinues, or otherwise ceases the provision of any or all hospital services provided by the hospital within seven years of the receipt of these funds, Hudson Regional Health or any successor entity shall reimburse the Department of Health according to the following: 100 percent of the funds if the violation occurs within three years of receipt, 80 percent of the funds if the violation occurs in the fourth year after receipt, 60 percent of the funds if the violation occurs in the fifth year after receipt, 40 percent of the funds if the violation occurs in the sixth year after receipt, and 20 percent of the funds if the violation occurs in the seventh year after receipt. Hudson Regional Health or any successor entity shall waive any defense based upon its status, or a hospital’s status, as a limited liability entity, nonprofit corporation, or other limited liability organization to avoid, limit, or reduce its repayment obligations as described under this paragraph. Hudson Regional Health, if it requires the transfer of any of its assets held upon the date on which the funds are received, shall offer the State, county, or municipality in which the assets are held, in that order, the right of first refusal to acquire the applicable assets.

2. This act shall take effect immediately.

STATEMENT

This supplemental appropriation provides $25 million to the Department of Health in State fiscal year 2026 for Hudson Regional Health. The funds are to be used exclusively to support Heights University Hospital, one of four Hudson County hospitals in this health system. In September 2025, Hudson Regional Health announced that unless it receives financial support from the State and other public entities, it will suspend non-essential services at Heights University Hospital.

As a condition of receiving these State funds, Hudson Regional Health must agree to: 1) maintain continuous operation of Heights University Hospital and not suspend, discontinue, or otherwise cease the provision of any hospital services provided by the hospital upon the date on which the funds are received; 2) provide the Department of Health with Heights University Hospital’s quarterly financial reports, as well as any other information required by the Commissioner of Health; 3) appoint a State representative as a non-voting member of the Heights University Hospital’s governing body; and 4) ensure that Heights University Hospital complies with the provisions of P.L.2022, c.101 (C.34:11-4.15), which requires that any change in control of the hospital be made by a contract or agreement which provides certain protections for employees.

Additionally, in the event that Heights University Hospital suspends, discontinues, or otherwise ceases the provision of any or all hospital services provided by the hospital within seven years of the receipt of these funds, Hudson Regional Health or any successor entity is obligated to reimburse the Department of Health according to the following: 100 percent of the funds if the violation occurs within three years of receipt, 80 percent of the funds if the violation occurs in the fourth year after receipt, 60 percent of the funds if the violation occurs in the fifth year after receipt, 40 percent of the funds if the violation occurs in the sixth year after receipt, and 20 percent of the funds if the violation occurs in the seventh year after receipt. Hudson Regional Health or any successor entity is required to waive any defense based upon its status, or a hospital’s status, as a limited liability entity, nonprofit corporation, or other limited liability organization to avoid, limit, or reduce its repayment obligations as described under the bill. Finally, Hudson Regional Health, if it requires the transfer of any of its assets held upon the date on which the funds are received, is directed to offer the State, county, or municipality in which the assets are held, in that order, the right of first refusal to acquire the applicable assets.