The New Jersey Department of Health (the “Department”) recently finalized regulations initially proposed in April 2020 that will now require all telehealth organizations providing telemedicine services to patients located in New Jersey to register their business with the Department before October 15, 2021, and annually thereafter. In addition to annual registrations, telehealth companies will also be required to submit annual reports on activity and encounter data.
Under the newly implemented registration standards for telemedicine and telehealth organization regulations, all “telemedicine or telehealth organizations” providing services in New Jersey must register with the Department. New Jersey law defines telemedicine or telehealth organizations to include corporations, sole proprietorships, partnerships, or limited liability companies organized for the primary purpose of administering services in furtherance of telemedicine or telehealth. Both the New Jersey Department of Health and New Jersey Telemedicine and Telehealth Organization have further clarified that this definition does not include healthcare facilities and private medical practices that have physical locations within the state and simply utilize telemedicine services in addition to in-person care services. The rule only applies to telemedicine companies who provide services in the state without having a physical presence there.
In order for an entity to be eligible for registration, a telemedicine company that meets the definition must complete the registration application, submit a nonrefundable fee of $1,500, and must not have been previously suspended or revoked by the Department’s Certificate of Need or Healthcare Facility Licensure Program. The regulations also require all telemedicine or telehealth organizations providing services in New Jersey as of August 16, 2021 to either submit a registration application by October 15, 2021 or cease providing telehealth or telemedicine services in the state. Failure to register by the October deadline will lead to enforcement action, which may include monetary penalties, suspension, revocation, or refusal to issue or renew an organization’s registration.
While not specifically outlined in the new regulations, the New Jersey Telemedicine and Telehealth Act also requires telemedicine or telehealth organizations to annually submit reports on activity and encounter data. Forthcoming regulations will detail the specific content of these reports, but, at a minimum, the reports are expected to include the following information for each consult: the patient’s race and ethnicity, the diagnostic codes, the evaluation management codes, and the source of payment for the consult.
EBG will continue to monitor developments on the New Jersey Business Registry and will provide updates as applicable.