HB5589ham001 104TH GENERAL ASSEMBLY

Rep. Robyn Gabel

Filed: 3/2/2026

10400HB5589ham001 LRB104 20227 KTG 34577 a

AMENDMENT TO HOUSE BILL 5589

AMENDMENT NO. ______. Amend House Bill 5589 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Administrative Procedure Act is amended by adding Section 5-45.71 as follows:

(5 ILCS 100/5-45.71 new)

Sec. 5-45.71. Emergency rulemaking; financial reporting of nonexempt hospitals. To provide for the expeditious and timely implementation of Section 5A-3.1 of the Illinois Public Aid Code, emergency rules implementing Section 5A-3.1 of the Illinois Public Aid Code may be adopted in accordance with Section 5-45 by the Department of Healthcare and Family Services. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 104th General Assembly.

Section 10. The Hospital Licensing Act is amended by changing Section 6.14a and by adding Section 4.8 as follows:

(210 ILCS 85/4.8 new)

Sec. 4.8. Additional licensing requirements.

(a) Financial resolution plan. Any hospital licensed under the provisions of this Act shall submit to the Department a financial resolution plan for the rapid and orderly resolution of finances and operations in the event of material financial distress. Such plans shall include, but not be limited to, the following:

(1) Full descriptions or organizational charts of the ownership structure, assets, liabilities, and contractual obligations of the hospital.

(2) Plans for the safe and orderly transfer and continuity of care for patients if there is contemplated or planned closure of at least one category of service, or a temporary suspension of such service.

(3) Plans for filing or exploring bankruptcy and any dissolution or closure of any category of service or services. Such plans include, but are not limited to, audit reports, operational contingency planning, and other preparations or research.

(4) Plans for the orderly preservation and transfer of medical records in accordance with the Medical Patient Rights Act, the Health Insurance Portability and Accountability Act of 1966, and other applicable medical privacy laws.

(5) Plans to transfer or outplace staff and employees to other hospitals, health care facilities, or entities. Such plans may also include proposed layoffs and downsizing and should include provisions for the placement of clinical trainees to complete their training.

(6) Identification of potential service gaps created due to material financial distress or failure, temporary suspension, discontinuation, or closure.

(7) Any other information or data that the Department requests pursuant to its discretion when reviewing the financial resolution plan.

(b) Financial resolution plans for hospitals with multiple locations operating under a single license. Any hospital licensed by the Department under Section 4.5 of this Act shall submit a financial resolution plan as outlined in subsection (a) for each location, campus, or facility administered under the license.

(c) Annual filing. Financial resolution plans shall be filed with the Department no later than 6 months after the effective date of this amendatory Act of the 104th General Assembly. Financial resolution plans, or annual affirmations of previously filed financial resolution plans, as outlined in this Section shall be submitted on an annual basis as determined by the Department through administrative rule.

(d) Penalties for non-compliance. The Department may impose fines of not more than $500 per week for failure to comply with the provisions of this Section.

(210 ILCS 85/6.14a)

Sec. 6.14a. Public disclosure of information. The following information is subject to disclosure to the public from the Department:

(1) Information submitted under Section 5 of this Act;

(2) Final records of license and certification inspections, surveys, financial resolution plans, and evaluations of hospitals; and

(3) Investigated complaints filed against a hospital and complaint investigation reports, except that a complaint or complaint investigation report shall not be disclosed to a person other than the complainant or complainant's representative before it is disclosed to a hospital, and except that a complainant or patient's name shall not be disclosed.

The Department shall disclose information under this Section in accordance with provisions for inspection and copying of public records required by the Freedom of Information Act.

However, the disclosure of information described in subsection (1) shall not be restricted by any provision of the Freedom of Information Act.

Notwithstanding any other provision of law, under no circumstances shall the Department disclose information obtained from a hospital that is confidential under Part 21 of Article VIII of the Code of Civil Procedure.

Any records or reports of inspections, surveys, or evaluations of hospitals may be disclosed only after the acceptance of a plan of correction by the Health Care Financing Administration of the U.S. Department of Health and Human Services or the Department, as appropriate, or at the conclusion of any administrative review of the Department's decision, or at the conclusion of any judicial review of such administrative decision. Whenever any record or report is subject to disclosure under this Section, the Department shall permit the hospital to provide a written statement pertaining to such report which shall be included as part of the information to be disclosed. The Department shall not divulge or disclose any record or report in a manner that identifies or would permit the identification of any natural person.

(Source: P.A. 98-463, eff. 8-16-13.)

Section 15. The Illinois Public Aid Code is amended by adding Section 5A-3.1 as follows:

(305 ILCS 5/5A-3.1 new)

Sec. 5A-3.1. Financial reporting of non-exempt hospitals.

(a) The following summary financial and utilization data shall be reported to the Department of Healthcare and Family Services by a hospital subject to the assessment imposed under this Article within 45 days of the end of a calendar quarter. Adjusted reports reflecting changes as a result of audited financial statements may be filed within 4 months of the close of the hospital's fiscal year. The Department of Healthcare and Family Services shall provide a reporting template to all hospitals that are required to submit such a report. The quarterly summary financial and utilization data shall include all of the following:

(1) The most recent audited financial statements.

(2) The most recent month end balance sheet detailing the assets, liabilities, and net worth at the end of the quarter, as specified by the Department of Healthcare and Family Services.

(3) The most recent month income statement summarizing the revenues, expenses, and net income.

(4) Utilization metrics including:

(A) Number of licensed beds.

(B) Average number of available beds.

(C) Average number of staffed beds.

(D) Number of discharges.

(E) Number of inpatient days.

(F) Number of outpatient visits.

(G) Total number of inpatient days, outpatient visits, and discharges by payer, including, but not limited to, Medicare, Medicaid fee-for-service, Medicaid managed care, commercial coverage, and other payers.

(5) Summary financial metrics as reflected in the most recent month's financial statements, including:

(A) Total operating expenses.

(B) Operating margin.

(C) Earnings before interest, taxes, and amortization (EBITA) margin.

(D) Days cash on hand.

(E) Unrestricted cash and investments.

(F) Days in accounts receivable.

(G) Net capital expenditure.

(6) Total inpatient gross revenues by payor, including, but not limited to, Medicare, Medicaid fee-for-service, Medicaid managed care, commercial coverage, and other payers.

(7) Total outpatient gross revenues by payer, including, but not limited to, Medicare, Medicaid fee-for-service, Medicaid managed care, commercial coverage, and other payers.

(8) Total net patient revenues by payer, including, but not limited to, Medicare, Medicaid fee-for-service, Medicaid managed care, commercial coverage, and other payers.

(9) Other operating revenue.

(10) Uncompensated care as percentage of total revenue.

(b) The Department of Healthcare and Family Services, in coordination with the Department of Public Health, shall administer the collection of required reports. The Department of Healthcare and Family Services may adopt any administrative rules, including emergency rules, necessary to implement this Section, including requesting additional information or removing information from the reporting requirements.

(c) If a hospital has not filed the required information within 45 days after the close of the quarterly reporting period, the Department of Healthcare and Family Services shall suspend payments authorized under subsection (r) of Section 12.7 until the Department receives the required information.".