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

S 3523 establishes a 36-month pilot program to expand access to mental health care for children aged 5-14 in New Jersey. The bill directs the Department of Human Services to modify NJ FamilyCare reimbursement rules, allowing partial hospitalization services (intensive outpatient mental health treatment) to be provided at non-hospital locations instead of requiring hospital settings. One provider must be selected to participate, meeting specific criteria including exclusive service to this age group and approval through the Children’s System of Care. The program requires a final report to the Governor and Legislature within 36 months, evaluating clinical and budgetary outcomes before potential expansion. This change aims to increase access to lower-cost, structured care while leveraging federal Medicaid funds.