Ambulatory care facilities (ACFs) in New Jersey are currently subject to an annual “assessment” by the Department of Health (DOH) equal to approximately 3% of gross revenue, not to exceed $350,000 annually per facility. However, the recently enacted Healthcare Finance Enhancement Act reduces the assessment rate to 2.5% but also removes the $350,000 cap starting in Fiscal Year 2026 (i.e., July 1, 2025).
While facilities can appeal the calculation of the assessment by DOH, they are now subject to an unlimited annual assessment equal to 2.5% of gross receipts. The Office of Legislative Services estimates an approximate $63,000,000 increase in state revenue as a result of removing the cap, as well as removing exemptions from facilities that were previously not subject to the assessment (i.e. surgical practices and facilities with less than $300,000 in annual revenue). The assessments collected from ACFs are deposited in the Health Care Subsidy Fund, which supports New Jersey Medicaid programs and charity care, and provides subsidies to New Jersey hospitals with high Medicaid patient ratios.
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