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Physical therapists across New Jersey face increasing administrative burdens, growing insurer requirements, and contract terms that can directly impact patient access to care. A bill currently under consideration in the New Jersey Senate (commonly referred to as the "Joint Negotiation Bill”) represents an important opportunity to address these challenges.
APTANJ supports this legislation because it gives independent healthcare providers, including private practice physical therapists, the ability to work together when negotiating certain contract terms with insurance carriers. For reference, please find the full language of the New Jersey Senate Bill 1386 (S1386), as it is currently be clicking here.
What Does the Bill Do?
The legislation allows independent New Jersey-licensed healthcare providers to engage in joint negotiations with insurance carriers through an approved representative. Importantly, the bill focuses primarily on contractual issues that affect patient care and practice operations, including:
- Utilization management requirements
- Medical necessity definitions
- Credentialing procedures
- Clinical guidelines
- Dispute resolution processes
- Administrative requirements
- Contract terms that affect care delivery
The bill also creates a pathway for providers to jointly negotiate fees and fee-related matters when state regulators determine that an insurance carrier has substantial market power and that existing contract conditions may threaten the quality or availability of patient care.
All negotiations would occur under active oversight by the New Jersey Attorney General, helping ensure transparency, accountability, and compliance with antitrust requirements.
Why This Matters to Private Practice Physical Therapists
Independent physical therapy practices often negotiate with large insurance carriers from a position of limited leverage. While individual practices may have little ability to influence contract language or administrative requirements, these provisions can significantly affect both patient access and practice sustainability.
This legislation would help create a more balanced process by allowing providers to collectively address issues that impact care delivery, including:
- Reducing unnecessary administrative barriers. Excessive authorization requirements, burdensome documentation standards, and complex claims processes can delay treatment and increase costs for practices and patients alike.
- Protecting patient access to care. When contract terms make it difficult for practices to participate in networks or provide timely services, patients ultimately experience reduced access to physical therapy.
- Supporting independent practice viability. Private practices are essential to healthcare access throughout New Jersey. Providing a structured mechanism for providers to address problematic contract provisions can help preserve community-based care options.
- Promoting clinical decision-making. Physical therapists should be able to focus on evidence-based patient care rather than navigating excessive administrative obstacles that interfere with treatment plans.
Why This Matters to the Profession
This bill is about more than contract negotiations — it is about ensuring that the profession has a meaningful voice in policies that affect patient care.
Physical therapists are critical providers within New Jersey's healthcare system. Yet many of the policies that shape patient access, treatment authorization, and reimbursement are established without meaningful provider input. This legislation creates a framework that allows healthcare professionals to work collaboratively and advocate for contract provisions that support high-quality care.
By strengthening the ability of providers to address issues collectively, the bill helps protect patient access, preserve independent practices, and promote a healthcare environment where clinical decisions are driven by patient needs.
What Happens Next?
While the Senate bill is an important step forward, a companion bill must also be introduced and advanced in the New Jersey General Assembly.
This is where APTANJ members can make a meaningful difference.
Take Action
We encourage every APTANJ member to contact their State Assembly representatives and ask them to support the introduction and advancement of a companion Assembly bill.
When communicating with legislators, consider emphasizing that this legislation:
- Supports patient access to quality healthcare services.
- Helps independent healthcare providers address contract provisions that impact care delivery.
- Creates a fairer negotiating environment between providers and large insurance carriers.
- Maintains strong state oversight through the Attorney General and the Department of Banking and Insurance.
- Strengthens the sustainability of community-based healthcare practices across New Jersey.
Your voice matters. Legislators need to hear directly from practicing physical therapists about the challenges patients and providers face under current insurance contracting structures.
Together, we can help advance legislation that supports patients, strengthens private practice physical therapy, and ensures our profession has a stronger voice in shaping the future of healthcare in New Jersey.
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