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Greenbaum, Rowe, Smith & Davis LLP Client Alert

Following a study of the long-term care (LTC) industry, New Jersey Governor Phil Murphy recently announced the release of a report with a series of recommendations and proposed changes to be implemented at LTC facilities throughout the state. 

The study was conducted by the Manatt Health consulting group during the month of May and was released on June 2, 2020.  Commissioned by the New Jersey Department of Health (DOH), the report identifies widespread and long-standing systemic issues within the state’s LTC industry that were exacerbated by the COVID-19 pandemic, with a primary focus on nursing homes. It includes recommendations to mitigate the impact of COVID-19 and reduce impacts of future outbreaks, and encompasses recommendations for the DOH, LTC facilities, and state and federal government.

The recommendations reference both near-term and intermediate longer-term changes to strengthen the emergency response capacity of facilities, stabilize the LTC workforce, increase transparency and accountability, and lay the foundation for a more resilient and higher-quality LTC system.

The following is an overview of Manatt Health’s assessment of New Jersey’s LTC facilities and infrastructure and subsequent recommendations:

Emergency Response Capacity 

Recognize, Stabilize and Bolster Workforce, including Financing 

The report does not address the changes that would be required in the current Medicaid system, under which managed care organizations establish Medicaid reimbursement rates through facility-specific contracts.

Appendix D to the report shows existing federal funding sources for COVID-19-related expenses.  The report does not address the sources of any additional state expenditures that may be required.

Accountability and Transparency

System-Wide Improvements

The Manatt Health report states that its recommendations will require further planning and statutory or regulatory changes, and that many recommendations will require additional funding. The full report can be accessed here: Recommendations.

Please contact the author of this Alert, Neil M. Sullivan nsullivan@greenbaumlaw.com |  973.577.1804 with questions. Mr. Sullivan is Counsel in the firm’s Healthcare Department.