Directs DHS to establish Children's Partial Hospitalization Pilot Program.

This bill establishes a 36-month pilot program allowing New Jersey's Medicaid program (NJ FamilyCare) to reimburse partial hospitalization services for children aged 5-14 at non-hospital locations, rather than requiring services to be provided in a hospital setting. It directly affects children with mental health needs who currently cannot access these intensive outpatient services outside hospitals due to reimbursement rules. The program requires one selected provider to exclusively serve children 5-14, meet all other Medicaid requirements except the hospital location rule, and apply for approval through the Children's System of Care. After 36 months, the Department of Human Services must report on the program's outcomes and recommend whether to continue or expand it.