Nursing home and other healthcare provider advocates are not pleased with a new New Jersey law that preserves employment for four months for workers whose facilities change ownership. Its unintended consequences could include facilities closing, less access to care and fewer jobs, opponents say.
As of last Wednesday (Nov. 16), non-governmental healthcare entities must offer eligible workers continued employment for at least four months following a change in control without any reduction in their wages and benefits. That includes paid time off, healthcare, retirement, and education benefits.
The Health Care Association of New Jersey and LeadingAge New Jersey & Delaware opposed Senate Bill 315.
“This law imposes unprecedented restrictions on the sale or transfer of healthcare facilities …,” Kathy Fiery, vice president of assisted living for the HCANJ told McKnight’s Tuesday.
“We opposed the law because it restricts a purchaser’s normal managerial discretion that may be needed to remedy poor financial conditions that may have necessitated the sale. Without that discretion, a potential buyer may choose to not purchase a facility, making it more likely that financially troubled facilities will close. In the end, this may result in patients losing access to care and workers unnecessarily losing jobs.”
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