Section 1270.100  Purpose

 

a)         This Part implements the Hospital Basic Services Preservation Act (the Act) [20 ILCS 4050]. The Act created, in the State treasury, the Hospital Basic Services Preservation Fund, which is administered by the State Treasurer to collateralize loans from financial institutions for capital projects necessary to maintain certain basic services required for the efficient and effective operation of essential community hospital providers who otherwise may not be able to meet financial institution credit standards for issuance of a standard commercial loan.  (Section 10 of the Act)

 

b)         The Fund consists of all public and private moneys donated or transferred to the Fund for the purpose of enabling essential community hospitals to continue to provide basic quality health care services that are subject to and meet standards of need under the Health Facilities Planning Act. (Section 10 of the Act)

 

Section 1270.200 Definitions

 

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

 

"Adverse Action" means a disciplinary action taken or formal complaint issued by HFPB, Illinois Department of Public Health (IDPH), Centers for Medicare and Medicaid Services, or any other State or federal agency against a person or entity that owns and/or operates a licensed or Medicare or Medicaid certified healthcare facility in the State of Illinois.  Such actions include, but are not limited to, all type "A" violations.

 

"Basic services" means emergency room and obstetrical services provided within a hospital.  "Basic services" is limited to the emergency and obstetric units and services provided by those units.  (Section 5 of the Act)

 

"Eligible expenses" means 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 related to cosmetic upgrades, staff expansion or salary, or structural expansion of any unit or department of a hospital.  (See 74 Ill. Adm. Code 755.200.) (Section 5 of the Act)

 

"Essential community hospital provider" means a facility meeting criteria established by rule by the State Treasurer. (See 74 Ill. Adm. Code 755.200.)  (Section 5 of the Act)

 

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

 

"HFPB" means the Illinois Health Facilities Planning Board.

 

"Licensee" means the entity to which a hospital license is granted by the Illinois Department of Public Health.

 

"Review Board" means the Hospital Basic Services Review Board established in Section 7 of the Act.

 

Section 1270.300   Referenced Materials

 

The following materials are referenced in this Part:

 

            a)         State Statutes

 

                        1)         Health Facilities Planning Act [20 ILCS 3960]

 

2)         Hospital Basic Services Preservation Act [20 ILCS 4050]

 

            b)         State Administrative Rules

 

1)         Health Facilities Planning Board:  Narrative and Planning Policies (77 Ill. Adm. Code 1100)

 

2)         Illinois State Treasurer:  Hospital Basic Services Preservation Act (74 Ill. Adm. Code 755)

 

Section 1270.400   Application for Basic Services Loan

 

a)         Essential community hospitals seeking collateralization of loans under the Act must apply to the Illinois Health Facilities Planning Board on a form prescribed by the Illinois Health Facilities Planning Board. (Section 15 of the Act)

 

b)         The application shall be completed in accordance with the requirements of this Part that are applicable to the individual project. 

 

c)         An application shall be determined to be complete or incomplete within 10 working days after receipt.  An application shall be deemed complete if all of the following have been met:

 

1)         All applicable information has been provided;

 

2)         Three copies of the application or one digital copy, plus one copy containing original signatures, have been submitted;

 

3)         All persons who are applicants have been identified and have submitted a Certificate of Good Standing or evidence from the Illinois Secretary of State that the persons are authorized to conduct business in Illinois; and

 

4)         All questionnaires for information or data, such as, but not limited to, 77 Ill. Adm. Code 1100.60 (Mandatory Reporting of Data) and 1100.70 (Data Appendices) of the HFPB's rules titled Narrative and Planning Policies have been submitted in accordance with the prescribed rules.

 

d)         An application shall be incomplete if any of the elements described in subsection (c) are not present or if additional information or documentation is required to clarify a response.

 

e)         If the application is deemed complete, the date of completion shall initiate the review period.  If the application is deemed incomplete, the applicant shall be allowed 60 days from the date of receipt of the notification to provide all necessary information to complete the application.  Upon receipt of all additional information requested, the application shall again be reviewed, and determination be made for completeness, within 10 working days.  If the application remains incomplete at the end of the allotted response period, the application shall be declared null and void.

 

f)         All applications shall be reviewed by staff within 30 days after the date the application is declared complete, unless the review period is formally extended by the applicant or HFPB.  HFPB shall consider the application at its first meeting subsequent to staff review.

 

g)         HFPB approval of an application does not affect the determination of eligibility and financial approvals to be made by the Office of the State Treasurer.  Further, HFPB approval of an application does not eliminate the filing of a separate application for a Certificate of Need permit, where required.

 

Section 1270.500  Hospital Basic Services Preservation −  Need Assessment Process

 

a)         All applications will be reviewed and evaluated for conformance with the applicable review criteria of this Part.

 

            b)         Each application will be reviewed and considered on an individual basis.

 

c)         Applications shall be subject to the need figures set forth in the most recent Inventory of Health Care Facilities and Services and Need Determinations (refer to 77 Ill. Adm. Code 1100.70) in effect prior to the date that HFPB takes action on the application.

 

d)         HFPB shall consider the application and any supplemental information or modification submitted by the applicant, staff reports, and other information coming before it in making its determination whether to approve the project. 

 

e)         HFPB action consists of the approval, denial, or deferral of consideration of an application.

 

f)         Within 30 days following HFPB review and action, HFPB shall forward to the Review Board a copy of the application, a record of HFPB's decision, a copy of HFPB's meeting minutes relating to the application, and all other documentation submitted by the applicant.

 

Section 1270.600   Hospital Basic Services Preservation − Need Assessment Criteria

 

a)         Narrative Description

The applicant shall provide:

 

1)         An explanation describing how the proposed expenses are eligible expenses;

 

2)         A full description of the proposed project, including supporting information for equipment replacement and facility renovation;

 

3)         Documentation of the estimated total cost of the proposed project and itemization of all components of the project included in the estimated costs and sources of cost estimates; and

 

4)         The projected completion date for the project, including allocation of time for all regulatory inspections, if required to confirm applicable code compliance.

 

b)         Justification of Need for the Project

                        The applicant shall describe:

 

1)         The conditions being upgraded.  For equipment being replaced, include age, condition, repair and maintenance records, and/or regulatory citations.  For facility projects, include statements of age and condition and any regulatory citations;

 

2)         How the proposed project will contribute to the provision of health care for the community;

 

3)         How the proposed project will improve the provision of health care by the applicant facility;

 

4)         How the proposed project will improve the quality and provision of the basic services provided; and

 

5)         Any additional relevant information.

 

c)         Background of the Applicant

HFPB will consider the background of the applicant, including:  the legal identity of the applicant, licensee, and building owner; community and patients served; and adverse actions.