Section 755.100  Introduction

 

a)         This Part has been developed to regulate the Hospital Basic Services Preservation Fund.  It delineates the Treasurer's role in the maintenance and administration of the Fund. 

           

b)         The Treasurer aims to ensure the Fund will be used to enable essential community hospitals to continue to provide basic quality health care services, especially those that aid the elderly and those exhibiting financial need who would not otherwise be able to receive the services, that are subject to and meet standards of need under the Health Facilities Planning Act [20 ILCS 4050].

 

Section 755.200  Definitions

 

The following words or phrases, when used in this Part, shall have the meanings ascribed to them in this Section.

 

                        "Act" – the Hospital Basic Services Preservation Act [20 ILCS 4050].

 

"Basic Services" – emergency room and obstetrical service provided within a hospital.  "Basic services" is limited to the emergency room and obstetric units and services provided within those units [20 ILCS 4050/5].

 

"Eligible Expenses" – expenses for expanding obstetrical or emergency units, updating equipment, repairing essential equipment, and purchasing new equipment that will increase the quality of basic services provided.  "Eligible expenses does not include expenses relating to cosmetic upgrades, staff expansion or salary, or structural expansion of any unit or department of a hospital.  [20 ILCS 4050/5]

 

"Essential Community Hospital Provider" – an Illinois general acute care hospital as described in 89 Ill. Adm. Code 148.270(c)(1) that would not otherwise be able to meet financial institution credit standards for issuance of a standard commercial loan or obtain the loan at an affordable rate. 

 

"Fund" – the Hospital Basic Services Preservation Fund established in Section 10 of the Act.

 

"Treasurer" – the Office of Illinois State Treasurer.

 

Section 755.300  Preferred Hospitals

 

a)         Preference shall be given to those facilities that serve significant numbers of Medicaid recipients to preserve access to basic services.

 

b)         Additional preference shall be given to those facilities that qualify for expedited reimbursement for medical services as described in 89 Ill. Adm. Code 140.71.

 

Section 755.400  Hospital Responsibilities

 

Each hospital receiving a loan collateralized under the Act shall:

 

a)         Submit documentation that the expenses for which the loan was granted were approved by the Illinois Health Facilities Planning Board (HFPB) in accordance with Section 15(a) of the Act [20 ILCS 4050/15(a)] and the Hospital Basic Services Review Board in accordance with Section 15(b) of the Act [20 ILCS 4050/15(b)].

 

b)         File quarterly reports with the Treasurer.  The reports shall include a cash basis statement of expenditures for the loan proceeds, a loan payment history, and the current loan balance.  The cash basis method recognizes revenues and expenses at the time physical cash is actually received or paid out.

 

Section 755.500  Bank Proposals

 

a)         Before disbursing moneys from the Fund, the Treasurer shall contact at least 5 approved financial institutions.

 

b)         Potential lenders shall provide the Treasurer with an estimated collateralization ratio and a potential range of interest rates applicable to the proposed loan.

 

Section 755.600  Treasurer Review

 

The Treasurer shall be responsible for:

 

a)         Reviewing HFPB's determination as to whether applicant hospitals offer basic services as defined by the Act and this Part.

 

b)         Reviewing HFPB's determination as to whether applicant hospitals are seeking funds to cover eligible expenses as defined by the Act and this Part.

 

1)         Eligible expenses shall be limited to tangible improvements such as expansion of the emergency and obstetrical units and the purchase of new equipment.  The goal is to increase the quality of the basic services provided.

 

2)         Cosmetic improvements and salary increases are specifically excluded from eligible expenses.

 

c)         Reviewing the hospitals' last audited financial statement to determine whether hospital could have obtained the sought-after funding without the requested collateralization.

 

d)         Determining whether the applicant hospital is an essential care provider as defined by the Act and this Part.