SB2239ham004 93RD GENERAL ASSEMBLY

Rep. John A. Fritchey

Filed: 07/21/04

09300SB2239ham004 LRB093 15871 WGH 52888 a

AMENDMENT TO SENATE BILL 2239

AMENDMENT NO. ______. Amend Senate Bill 2239 by replacing everything after the enacting clause with the following:

"ARTICLE 1. FINDINGS

11		Section 405. Sorry Works! pilot program. The Sorry Works!
12		pilot program is established. During the first year of the
13		program's operation, participation in the program shall be open
14		to one hospital. Hospitals may participate only with the
15		approval of the hospital administration and the hospital's
16		organized medical staff. During the second year of the
17		program's operation, participation in the program shall be open
18		to one additional hospital.
19		The first participating hospital selected by the committee
20		established under Section 410 shall be located in a county with
21		a population greater than 200,000 that is contiguous with the
22		Mississippi River.
23		Under the program, participating hospitals and physicians
24		shall promptly acknowledge and apologize for mistakes in
25		patient care and promptly offer fair settlements.
26		Participating hospitals shall encourage patients and families
27		to retain their own legal counsel to ensure that their rights
28		are protected and to help facilitate negotiations for fair
29		settlements. Participating hospitals shall report to the
30		committee their total costs for healing art malpractice
31		verdicts, settlements, and defense litigation for the

1		preceding 5 years to enable the committee to determine average
2		costs for that hospital during that period. The committee shall
3		develop standards and protocols to compare costs for cases
4		handled by traditional means and cases handled under the Sorry
5		Works! protocol.
6		If the committee determines that the total costs of cases
7		handled under the Sorry Works! protocol by a hospital
8		participating in the program exceed the total costs that would
9		have been incurred if the cases had been handled by traditional
10		means, the hospital may apply for a grant from the Sorry Works!
11		Fund, a special fund that is created in the State Treasury, for
12		an amount, as determined by the committee, by which the total
13		costs exceed the total costs that would have been incurred if
14		the cases had been handled by traditional means; however, the
15		total of all grants from the Fund for cases in any single
16		participating hospital in any year may not exceed the amount in
17		the Fund or $2,000,000, whichever is less. All grants shall be
18		subject to appropriation. Moneys in the Fund shall consist of
19		funds transferred into the Fund or otherwise made available
20		from any source.

4

ARTICLE 2. RISK RETENTION ARRANGEMENTS

5		Section 205. The Open Meetings Act is amended by changing
6		Section 2 as follows:
7		(5 ILCS 120/2) (from Ch. 102, par. 42)
8		Sec. 2. Open meetings.
9		(a) Openness required. All meetings of public bodies shall
10		be open to the public unless excepted in subsection (c) and
11		closed in accordance with Section 2a.
12		(b) Construction of exceptions. The exceptions contained
13		in subsection (c) are in derogation of the requirement that
14		public bodies meet in the open, and therefore, the exceptions
15		are to be strictly construed, extending only to subjects
16		clearly within their scope. The exceptions authorize but do not
17		require the holding of a closed meeting to discuss a subject
18		included within an enumerated exception.
19		(c) Exceptions. A public body may hold closed meetings to
20		consider the following subjects:
21		(1) The appointment, employment, compensation,
22		discipline, performance, or dismissal of specific
23		employees of the public body or legal counsel for the
24		public body, including hearing testimony on a complaint
25		lodged against an employee of the public body or against
26		legal counsel for the public body to determine its
27		validity.
28		(2) Collective negotiating matters between the public
29		body and its employees or their representatives, or
30		deliberations concerning salary schedules for one or more
31		classes of employees.

1		(3) The selection of a person to fill a public office,
2		as defined in this Act, including a vacancy in a public
3		office, when the public body is given power to appoint
4		under law or ordinance, or the discipline, performance or
5		removal of the occupant of a public office, when the public
6		body is given power to remove the occupant under law or
7		ordinance.
8		(4) Evidence or testimony presented in open hearing, or
9		in closed hearing where specifically authorized by law, to
10		a quasi-adjudicative body, as defined in this Act, provided
11		that the body prepares and makes available for public
12		inspection a written decision setting forth its
13		determinative reasoning.
14		(5) The purchase or lease of real property for the use
15		of the public body, including meetings held for the purpose
16		of discussing whether a particular parcel should be
17		acquired.
18		(6) The setting of a price for sale or lease of
19		property owned by the public body.
20		(7) The sale or purchase of securities, investments, or
21		investment contracts.
22		(8) Security procedures and the use of personnel and
23		equipment to respond to an actual, a threatened, or a
24		reasonably potential danger to the safety of employees,
25		students, staff, the public, or public property.
26		(9) Student disciplinary cases.
27		(10) The placement of individual students in special
28		education programs and other matters relating to
29		individual students.
30		(11) Litigation, when an action against, affecting or
31		on behalf of the particular public body has been filed and
32		is pending before a court or administrative tribunal, or
33		when the public body finds that an action is probable or
34		imminent, in which case the basis for the finding shall be

1		recorded and entered into the minutes of the closed
2		meeting.
3		(12) The establishment of reserves or settlement of
4		claims as provided in the Local Governmental and
5		Governmental Employees Tort Immunity Act, if otherwise the
6		disposition of a claim or potential claim might be
7		prejudiced, or the review or discussion of claims, loss or
8		risk management information, records, data, advice or
9		communications from or with respect to any insurer of the
10		public body or any intergovernmental risk management
11		association or self insurance pool of which the public body
12		is a member.
13		(13) Conciliation of complaints of discrimination in
14		the sale or rental of housing, when closed meetings are
15		authorized by the law or ordinance prescribing fair housing
16		practices and creating a commission or administrative
17		agency for their enforcement.
18		(14) Informant sources, the hiring or assignment of
19		undercover personnel or equipment, or ongoing, prior or
20		future criminal investigations, when discussed by a public
21		body with criminal investigatory responsibilities.
22		(15) Professional ethics or performance when
23		considered by an advisory body appointed to advise a
24		licensing or regulatory agency on matters germane to the
25		advisory body's field of competence.
26		(16) Self evaluation, practices and procedures or
27		professional ethics, when meeting with a representative of
28		a statewide association of which the public body is a
29		member.
30		(17) The recruitment, credentialing, discipline or
31		formal peer review of physicians or other health care
32		professionals for a hospital, or other institution
33		providing medical care, that is operated by the public
34		body.

1		(18) Deliberations for decisions of the Prisoner
2		Review Board.
3		(19) Review or discussion of applications received
4		under the Experimental Organ Transplantation Procedures
5		Act.
6		(20) The classification and discussion of matters
7		classified as confidential or continued confidential by
8		the State Employees Suggestion Award Board.
9		(21) Discussion of minutes of meetings lawfully closed
10		under this Act, whether for purposes of approval by the
11		body of the minutes or semi-annual review of the minutes as
12		mandated by Section 2.06.
13		(22) Deliberations for decisions of the State
14		Emergency Medical Services Disciplinary Review Board.
15		(23) The operation by a municipality of a municipal
16		utility or the operation of a municipal power agency or
17		municipal natural gas agency when the discussion involves
18		(i) contracts relating to the purchase, sale, or delivery
19		of electricity or natural gas or (ii) the results or
20		conclusions of load forecast studies.
21		(24) Meetings of a residential health care facility
22		resident sexual assault and death review team or the
23		Residential Health Care Facility Resident Sexual Assault
24		and Death Review Teams Executive Council under the
25		Residential Health Care Facility Resident Sexual Assault
26		and Death Review Team Act.
27		(25) The establishment of reserves administration,
28		adjudication, or settlement of claims as provided in
29		Article XLV of the Illinois Insurance Code if otherwise the
30		disposition of a claim or potential claim might be
31		prejudiced, or the review or discussion of claims, loss or
32		risk management information, records, data, advice or
33		communications from or with respect to any self-insurance
34		trust administration or adjudication of any claim, or

1		insurer created by the public body.
2		(d) Definitions. For purposes of this Section:
3		"Employee" means a person employed by a public body whose
4		relationship with the public body constitutes an
5		employer-employee relationship under the usual common law
6		rules, and who is not an independent contractor.
7		"Public office" means a position created by or under the
8		Constitution or laws of this State, the occupant of which is
9		charged with the exercise of some portion of the sovereign
10		power of this State. The term "public office" shall include
11		members of the public body, but it shall not include
12		organizational positions filled by members thereof, whether
13		established by law or by a public body itself, that exist to
14		assist the body in the conduct of its business.
15		"Quasi-adjudicative body" means an administrative body
16		charged by law or ordinance with the responsibility to conduct
17		hearings, receive evidence or testimony and make
18		determinations based thereon, but does not include local
19		electoral boards when such bodies are considering petition
20		challenges.
21		(e) Final action. No final action may be taken at a closed
22		meeting. Final action shall be preceded by a public recital of
23		the nature of the matter being considered and other information
24		that will inform the public of the business being conducted.
25		(Source: P.A. 93-57, eff. 7-1-03; 93-79, eff. 7-2-03; 93-422,
26		eff. 8-5-03; 93-577, eff. 8-21-03; revised 9-8-03)

27		Section 210. The Counties Code is amended by changing
28		Section 5-1005 and by adding Division 6-34 as follows:
29		(55 ILCS 5/5-1005) (from Ch. 34, par. 5-1005)
30		Sec. 5-1005. Powers. Each county shall have power:
31		1. To purchase and hold the real and personal estate
32		necessary for the uses of the county, and to purchase and hold,

1		for the benefit of the county, real estate sold by virtue of
2		judicial proceedings in which the county is plaintiff.
3		2. To sell and convey or lease any real or personal estate
4		owned by the county.
5		3. To make all contracts and do all other acts in relation
6		to the property and concerns of the county necessary to the
7		exercise of its corporate powers.
8		4. To take all necessary measures and institute proceedings
9		to enforce all laws for the prevention of cruelty to animals.
10		5. To purchase and hold or lease real estate upon which may
11		be erected and maintained buildings to be utilized for purposes
12		of agricultural experiments and to purchase, hold and use
13		personal property for the care and maintenance of such real
14		estate in connection with such experimental purposes.
15		6. To cause to be erected, or otherwise provided, suitable
16		buildings for, and maintain a county hospital and necessary
17		branch hospitals and/or a county sheltered care home or county
18		nursing home for the care of such sick, chronically ill or
19		infirm persons as may by law be proper charges upon the county,
20		or upon other governmental units, and to provide for the
21		management of the same. The county board may establish rates to
22		be paid by persons seeking care and treatment in such hospital
23		or home in accordance with their financial ability to meet such
24		charges, either personally or through a hospital plan or
25		hospital insurance, and the rates to be paid by governmental
26		units, including the State, for the care of sick, chronically
27		ill or infirm persons admitted therein upon the request of such
28		governmental units. Any hospital maintained by a county under
29		this Section is authorized to provide any service and enter
30		into any contract or other arrangement not prohibited for a
31		hospital that is licensed under the Hospital Licensing Act,
32		incorporated under the General Not-For-Profit Corporation Act,
33		and exempt from taxation under paragraph (3) of subsection (c)
34		of Section 501 of the Internal Revenue Code.

1		7. To contribute such sums of money toward erecting,
2		building, maintaining, and supporting any non-sectarian public
3		hospital located within its limits as the county board of the
4		county shall deem proper.
5		8. To purchase and hold real estate for the preservation of
6		forests, prairies and other natural areas and to maintain and
7		regulate the use thereof.
8		9. To purchase and hold real estate for the purpose of
9		preserving historical spots in the county, to restore, maintain
10		and regulate the use thereof and to donate any historical spot
11		to the State.
12		10. To appropriate funds from the county treasury to be
13		used in any manner to be determined by the board for the
14		suppression, eradication and control of tuberculosis among
15		domestic cattle in such county.
16		11. To take all necessary measures to prevent forest fires
17		and encourage the maintenance and planting of trees and the
18		preservation of forests.
19		12. To authorize the closing on Saturday mornings of all
20		offices of all county officers at the county seat of each
21		county, and to otherwise regulate and fix the days and the
22		hours of opening and closing of such offices, except when the
23		days and the hours of opening and closing of the office of any
24		county officer are otherwise fixed by law; but the power herein
25		conferred shall not apply to the office of State's Attorney and
26		the offices of judges and clerks of courts and, in counties of
27		500,000 or more population, the offices of county clerk.
28		13. To provide for the conservation, preservation and
29		propagation of insectivorous birds through the expenditure of
30		funds provided for such purpose.
31		14. To appropriate funds from the county treasury and
32		expend the same for care and treatment of tuberculosis
33		residents.
34		15. In counties having less than 1,000,000 inhabitants, to

1		take all necessary or proper steps for the extermination of
2		mosquitoes, flies or other insects within the county.
3		16. To install an adequate system of accounts and financial
4		records in the offices and divisions of the county, suitable to
5		the needs of the office and in accordance with generally
6		accepted principles of accounting for governmental bodies,
7		which system may include such reports as the county board may
8		determine.
9		17. To purchase and hold real estate for the construction
10		and maintenance of motor vehicle parking facilities for persons
11		using county buildings, but the purchase and use of such real
12		estate shall not be for revenue producing purposes.
13		18. To acquire and hold title to real property located
14		within the county, or partly within and partly outside the
15		county by dedication, purchase, gift, legacy or lease, for park
16		and recreational purposes and to charge reasonable fees for the
17		use of or admission to any such park or recreational area and
18		to provide police protection for such park or recreational
19		area. Personnel employed to provide such police protection
20		shall be conservators of the peace within such park or
21		recreational area and shall have power to make arrests on view
22		of the offense or upon warrants for violation of any of the
23		ordinances governing such park or recreational area or for any
24		breach of the peace in the same manner as the police in
25		municipalities organized and existing under the general laws of
26		the State. All such real property outside the county shall be
27		contiguous to the county and within the boundaries of the State
28		of Illinois.
29		19. To appropriate funds from the county treasury to be
30		used to provide supportive social services designed to prevent
31		the unnecessary institutionalization of elderly residents, or,
32		for operation of, and equipment for, senior citizen centers
33		providing social services to elderly residents.
34		20. To appropriate funds from the county treasury and loan

1		such funds to a county water commission created under the
2		"Water Commission Act", approved June 30, 1984, as now or
3		hereafter amended, in such amounts and upon such terms as the
4		county may determine or the county and the commission may
5		agree. The county shall not under any circumstances be
6		obligated to make such loans. The county shall not be required
7		to charge interest on any such loans.
8		21. To establish an independent entity to administer a
9		medical care risk retention trust program, to contribute such
10		sums of money to the risk retention trust program as the county
11		board of the county shall deem proper to operate the medical
12		care risk retention trust program, to establish uniform
13		eligibility requirements for participation in the risk
14		retention trust program, to appoint an administrator of the
15		risk retention trust program, to charge premiums, to establish
16		a billing procedure to collect premiums, and to ensure timely
17		administration and adjudication of claims under the program. A
18		single medical care risk retention trust program may be
19		established jointly by more than one county, in accordance with
20		an agreement between the participating counties, if at least
21		one of the participating counties has a population of 200,000
22		or more according to the most recent federal decennial census.
23		All contracts for the purchase of coal under this Section
24		shall be subject to the provisions of "An Act concerning the
25		use of Illinois mined coal in certain plants and institutions",
26		filed July 13, 1937, as amended.
27		(Source: P.A. 86-962; 86-1028.)
28		(55 ILCS 5/Div. 6-34 heading new)
29		Division 6-34. Funding for health care financing programs
30		(55 ILCS 5/6-34001 new)
31		Sec. 6-34001. Authorization. The county board of any county
32		with a population of 200,000 or more according to the most

1		recent federal decennial census (and a county with a population
2		of less than 200,000 according to the most recent federal
3		decennial census if that county is participating in a single
4		trust program with one or more other counties in accordance
5		with the requirements of paragraph (21) of Section 5-1005 of
6		this Code) may, upon finding such action necessary for
7		protection of the public health, safety, and welfare, incur an
8		indebtedness by the establishment of lines or letters of credit
9		or issue general obligation or revenue bonds for the purpose of
10		ensuring the availability of and improving hospital, medical,
11		and health services as authorized under paragraph (21) of
12		Section 5-1005 of this Code.
13		(55 ILCS 5/6-34002 new)
14		Sec. 6-34002. Bonds. The bonds authorized in Section
15		6-34001 shall be issued in such denominations, be for such term
16		or terms, and bear interest at such rate as may be specified in
17		the resolution of the county board authorizing the issuance of
18		those bonds.

19		Section 215. The Illinois Insurance Code is amended by
20		adding Article XLV as follows:
21		(215 ILCS 5/Art. XLV heading new)
22		Article XLV. COUNTY RISK RETENTION ARRANGEMENTS
23		FOR THE PROVISION OF MEDICAL MALPRACTICE INSURANCE
24		(215 ILCS 5/1501 new)
25		Sec. 1501. Scope of Article. This Article applies only to
26		trusts sponsored by counties and organized under this Article
27		to provide medical malpractice insurance authorized under
28		paragraph (21) of Section 5-1005 of the Counties Code for
29		physicians and health care professionals providing medical
30		care and health care within the county's limits. In the case of

1		a single trust sponsored and organized by more than one county
2		in accordance with the requirements of paragraph (21) of
3		Section 5-1005 of the Counties Code, the powers and duties of a
4		county under this Article shall be exercised jointly by the
5		counties participating in the trust program in accordance with
6		the agreement between the counties.
7		(215 ILCS 5/1502 new)
8		Sec. 1502. Definitions. As used in this Article:
9		"Risk retention trust" or "trust" means a risk retention
10		trust created under this Article.
11		"Trust sponsor" means a county that has created a risk
12		retention trust.
13		"Pool retention fund" means a separate fund maintained for
14		payment of first dollar claims, up to a specified amount per
15		claim ("specific retention") and up to an aggregate amount for
16		a 12-month period ("aggregate retention").
17		"Contingency reserve fund" means a separate fund
18		maintained for payment of claims in excess of the pool
19		retention fund amount.
20		"Coverage grant" means the document describing specific
21		coverages and terms of coverage that are provided by a risk
22		retention trust created under this Article.
23		"Licensed service company" means an entity licensed by the
24		Department to perform claims adjusting, loss control, and data
25		processing.
26		(215 ILCS 5/1503 new)
27		Sec. 1503. Name. The corporate name of any risk retention
28		trust shall not be the same as or deceptively similar to the
29		name of any domestic insurance company or of any foreign or
30		alien insurance company authorized to transact business in this
31		State.

1		(215 ILCS 5/1504 new)
2		Sec. 1504. Principal office place of business. The
3		principal office of any risk retention trust shall be located
4		in this State.
5		(215 ILCS 5/1505 new)
6		Sec. 1505. Creation.
7		(1) Any county with a population of 200,000 or more
8		according to the most recent federal decennial census may
9		create a risk retention trust for the pooling of risks to
10		provide professional liability coverage authorized under
11		paragraph (21) of Section 5-1005 of the Counties Code for its
12		physicians and health care professionals providing medical
13		care and related health care within the county's limits. A
14		single risk retention trust may also be created jointly by more
15		than one county in accordance with the requirements of
16		paragraph (21) of Section 5-1005 of the Counties Code. A trust
17		shall be administered by at least 3 trustees who may be
18		individuals or corporate trustees and are appointed by the
19		trust sponsor and who represent physicians who have agreed in
20		writing to participate in the trust.
21		(2) The trustees shall appoint a qualified licensed
22		administrator who shall administer the affairs of the risk
23		retention trust.
24		(3) The trustees shall retain a licensed service company to
25		perform claims adjusting, loss control, and data processing and
26		any other delegated administrative duties.
27		(4) The trust sponsor, the trustees, and the trust
28		administrator shall be fiduciaries of the trust.
29		(5) A trust shall be consummated by a written trust
30		agreement and shall be subject to the laws of this State
31		governing the creation and operation of trusts, to the extent
32		not inconsistent with this Article.

1		(215 ILCS 5/1506 new)
2		Sec. 1506. Participation.
3		(1) A physician or health care professional providing
4		medical care and related health care within the county's limits
5		may participate in a risk retention trust if the physician or
6		health care professional:
7		(a) meets the underwriting standards for acceptance
8		into the trust;
9		(b) files a written application for coverage, agreeing
10		to meet all of the membership conditions of the trust;
11		(c) provides medical care and related health care in
12		the county sponsoring the trust;
13		(d) agrees to meet the ongoing loss control provisions
14		and risk pooling arrangements set forth by the trust;
15		(e) pays premium contributions on a timely basis as
16		required; and
17		(f) pays predetermined annual required contributions
18		into the contingency reserve fund.
19		(2) A physician or health care professional accepted for
20		trust membership and participating in the trust is liable for
21		payment to the trust of the amount of his or her annual premium
22		contribution and his or her annual predetermined contingency
23		reserve fund contribution.
24		(215 ILCS 5/1507 new)
25		Sec. 1507. Coverage grants; payment of claims.
26		(1) A risk retention trust may not issue coverage grants
27		until it has established a contingency reserve fund in an
28		amount deemed appropriate by the trust and filed with the
29		Department of Insurance. A risk retention trust must have and
30		at all times maintain a pool retention fund or a line or letter
31		of credit at least equal to its unpaid liabilities as
32		determined by an independent actuary.
33		(2) Every coverage grant issued or delivered in this State

1		by a risk retention trust shall provide for the extent of the
2		liability of trust members to the extent that funds are needed
3		to pay a member's share of the depleted contingency reserve
4		fund needed to maintain the reserves required by this Section.
5		(3) All claims shall be paid first from the pool retention
6		fund. If that fund becomes depleted, any additional claims
7		shall be paid from the contingency reserve fund.
8		(215 ILCS 5/1508 new)
9		Sec. 1508. Applicable Illinois Insurance Code provisions.
10		Other than this Article, only Sections 155.19, 155.20, and
11		155.25 and subsections (a) through (c) of Section 155.18 of
12		this Code shall apply to county risk retention trusts. The
13		Director shall advise the county board of any determinations
14		made pursuant to subsection (b) of Section 155.18 of this Code.
15		(215 ILCS 5/1509 new)
16		Sec. 1509. Authorized investments. In addition to other
17		investments authorized by law, a risk retention trust with
18		assets of at least $5,000,000 may invest in any combination of
19		the following:
20		(1) the common stocks listed on a recognized exchange
21		or market;
22		(2) stock and convertible debt investments, or
23		investment grade corporate bonds, in or issued by any
24		corporation, the book value of which may not exceed 5% of
25		the total intergovernmental risk management entity's
26		investment account at book value in which those securities
27		are held, determined as of the date of the investment,
28		provided that investments in the stock of any one
29		corporation may not exceed 5% of the total outstanding
30		stock of the corporation and that the investments in the
31		convertible debt of any one corporation may not exceed 5%
32		of the total amount of such debt that may be outstanding;

1		(3) the straight preferred stocks or convertible
2		preferred stocks and convertible debt securities issued or
3		guaranteed by a corporation whose common stock is listed on
4		a recognized exchange or market;
5		(4) mutual funds or commingled funds that meet the
6		following requirements:
7		(A) the mutual fund or commingled fund is managed
8		by an investment company as defined in and registered
9		under the federal Investment Company Act of 1940 and
10		registered under the Illinois Securities Law of 1953 or
11		an investment adviser as defined under the federal
12		Investment Advisers Act of 1940;
13		(B) the mutual fund has been in operation for at
14		least 5 years; and
15		(C) the mutual fund has total net assets of
16		$150,000,000 or more;
17		(5) commercial grade real estate located in the State
18		of Illinois.
19		Any investment adviser retained by a trust must be a
20		fiduciary who has the power to manage, acquire, or dispose of
21		any asset of the trust and has acknowledged in writing that he
22		or she is a fiduciary with respect to the trust and that he or
23		she will adhere to all of the guidelines of the trust and is
24		one or more of the following:
25		(i) registered as an investment adviser under the
26		federal Investment Advisers Act of 1940;
27		(ii) registered as an investment adviser under the
28		Illinois Securities Law of 1953;
29		(iii) a bank as defined in the federal Investment
30		Advisers Act of 1940;
31		(iv) an insurance company authorized to transact
32		business in this State.
33		Nothing in this Section shall be construed to authorize a
34		risk retention trust to accept the deposit of public funds

1		except for trust risk retention purposes.

ARTICLE 3. AMENDATORY PROVISIONS

3		Section 310. The Illinois Insurance Code is amended by
4		changing Sections 155.18, 155.19, 402, and 1204 and by adding
5		Section 155.18a as follows:
6		(215 ILCS 5/155.18) (from Ch. 73, par. 767.18)
7		Sec. 155.18. (a) This Section shall apply to insurance on
8		risks based upon negligence by a physician, hospital or other
9		health care provider, referred to herein as medical liability
10		insurance. This Section shall not apply to contracts of
11		reinsurance, nor to any farm, county, district or township
12		mutual insurance company transacting business under an Act
13		entitled "An Act relating to local mutual district, county and
14		township insurance companies", approved March 13, 1936, as now
15		or hereafter amended, nor to any such company operating under a
16		special charter.
17		(b) The following standards shall apply to the making and
18		use of rates pertaining to all classes of medical liability
19		insurance:
20		(1) Rates shall not be excessive or inadequate, as
21		herein defined, nor shall they be unfairly discriminatory.
22		No rate shall be held to be excessive unless such rate is
23		unreasonably high for the insurance provided, and a
24		reasonable degree of competition does not exist in the area
25		with respect to the classification to which such rate is
26		applicable.
27		No rate shall be held inadequate unless it is
28		unreasonably low for the insurance provided and continued
29		use of it would endanger solvency of the company.
30		(2) Consideration shall be given, to the extent
31		applicable, to past and prospective loss experience within

1		and outside this State, to a reasonable margin for
2		underwriting profit and contingencies, to past and
3		prospective expenses both countrywide and those especially
4		applicable to this State, and to all other factors,
5		including judgment factors, deemed relevant within and
6		outside this State.
7		Consideration may also be given in the making and use
8		of rates to dividends, savings or unabsorbed premium
9		deposits allowed or returned by companies to their
10		policyholders, members or subscribers.
11		(3) The systems of expense provisions included in the
12		rates for use by any company or group of companies may
13		differ from those of other companies or groups of companies
14		to reflect the operating methods of any such company or
15		group with respect to any kind of insurance, or with
16		respect to any subdivision or combination thereof.
17		(4) Risks may be grouped by classifications for the
18		establishment of rates and minimum premiums.
19		Classification rates may be modified to produce rates for
20		individual risks in accordance with rating plans which
21		establish standards for measuring variations in hazards or
22		expense provisions, or both. Such standards may measure any
23		difference among risks that have a probable effect upon
24		losses or expenses. Such classifications or modifications
25		of classifications of risks may be established based upon
26		size, expense, management, individual experience, location
27		or dispersion of hazard, or any other reasonable
28		considerations and shall apply to all risks under the same
29		or substantially the same circumstances or conditions. The
30		rate for an established classification should be related
31		generally to the anticipated loss and expense factors of
32		the class.
33		(c) Every company writing medical liability insurance
34		shall file with the Director of Insurance the rates and rating

1		schedules it uses for medical liability insurance.
2		(1) This filing shall occur upon a company's
3		commencement of medical liability insurance business in
4		this State at least annually and thereafter as often as the
5		rates are changed or amended.
6		(2) For the purposes of this Section, any change in
7		premium to the company's insureds as a result of a change
8		in the company's base rates or a change in its increased
9		limits factors shall constitute a change in rates and shall
10		require a filing with the Director.
11		(3) It shall be certified in such filing by an officer
12		of the company and a qualified actuary that the company's
13		rates are based on sound actuarial principles and are not
14		inconsistent with the company's experience.
15		(d) If, after an administrative a hearing pursuant to
16		subsection (c) of Section 401 of this Code, the Director finds:
17		(1) that any rate, rating plan or rating system
18		violates the provisions of this Section applicable to it,
19		he shall may issue an order to the company which has been
20		the subject of the hearing specifying in what respects such
21		violation exists and may prohibit stating when, within a
22		reasonable period of time, the further use of such rate or
23		rating system by such company in contracts of insurance
24		made thereafter shall be prohibited;
25		(2) that the violation of any of the provisions of this
26		Section applicable to it by any company which has been the
27		subject of the hearing was wilful or that any company has
28		repeatedly violated any provision of this Section, he may
29		take either or both of the following actions:
30		(A) Suspend suspend or revoke, in whole or in part,
31		the certificate of authority of such company with
32		respect to the class of insurance which has been the
33		subject of the hearing.
34		(B) Impose a penalty of up to $1,000 against the

1		company for each violation. Each day during which a
2		violation occurs constitutes a separate violation.
3		(e) Every company writing medical liability insurance in
4		this State shall offer to each of its medical liability
5		insureds the option to make premium payments in at least
6		quarterly installments as prescribed by and filed with the
7		Director. This offer shall be included in the initial offer or
8		in the first policy renewal occurring after the effective date
9		of this amendatory Act of the 93rd General Assembly, but no
10		earlier than January 1, 2005.
11		(f) Every company writing medical liability insurance is
12		encouraged, but not required, to offer the opportunity for
13		participation in a plan offering deductibles to its medical
14		liability insureds. Any plan to offer deductibles shall be
15		filed with the Department of Insurance.
16		(g) Medical liability insurers are encouraged, but not
17		required, to offer the opportunity for participation in a plan
18		providing premium discounts for participation in risk
19		management activities to its medical liability insureds. Any
20		such plan shall be filed with the Department.
21		(Source: P.A. 79-1434.)
22		(215 ILCS 5/155.18a new)
23		Sec. 155.18a. Professional Liability Insurance Resource
24		Center. The Director of Insurance shall establish a
25		Professional Liability Insurance Resource Center on the World
26		Wide Web containing the names and telephone numbers of all
27		licensed companies providing medical liability insurance and
28		producers who sell medical liability insurance. Each company
29		and producer shall submit the information to the Department on
30		or before September 30 of each year in order to be listed on
31		the website. The Department is under no obligation to list a
32		company or producer on the website. Hyperlinks to company
33		websites shall be included, if available. The publication of

1		the information on the Department's website shall commence on
2		January 1, 2005. The Department shall update the information on
3		the Professional Liability Insurance Resource Center at least
4		annually.
5		(215 ILCS 5/155.19) (from Ch. 73, par. 767.19)
6		Sec. 155.19. All claims filed after December 31, 1976 with
7		any insurer and all suits filed after December 31, 1976 in any
8		court in this State, alleging liability on the part of any
9		physician, hospital or other health care provider for medically
10		related injuries, shall be reported to the Director of
11		Insurance in such form and under such terms and conditions as
12		may be prescribed by the Director. Notwithstanding any other
13		provision of law to the contrary, any insurer, stop loss
14		insurer, captive insurer, risk retention group, county risk
15		retention trust, religious or charitable risk pooling trust,
16		surplus line insurer, or other entity authorized or permitted
17		by law to provide medical liability insurance in this State
18		shall report to the Director, in such form and under such terms
19		and conditions as may be prescribed by the Director, all claims
20		filed after December 31, 2004 and all suits filed after
21		December 31, 2004 in any court in this State alleging liability
22		on the part of any physician, hospital, or health care provider
23		for medically-related injuries. Each clerk of the circuit court
24		shall provide to the Director such information as the Director
25		may deem necessary to verify the accuracy and completeness of
26		reports made to the Director under this Section. The Director
27		shall maintain complete and accurate records of all such claims
28		and suits including their nature, amount, disposition and other
29		information as he may deem useful or desirable in observing and
30		reporting on health care provider liability trends in this
31		State. The Director shall release to appropriate disciplinary
32		and licensing agencies any such data or information which may
33		assist such agencies in improving the quality of health care or

1		which may be useful to such agencies for the purpose of
2		professional discipline.
3		With due regard for appropriate maintenance of the
4		confidentiality thereof, the Director shall may release, on an
5		annual basis, from time to time to the Governor, the General
6		Assembly and the general public statistical reports based on
7		such data and information.
8		If the Director finds that any entity required to report
9		information in its possession under this Section has violated
10		any provision of this Section by filing late, incomplete, or
11		inaccurate reports, the Director may fine the entity up to
12		$1,000 for each offense. Each day during which a violation
13		occurs constitutes a separate offense.
14		The Director may promulgate such rules and regulations as
15		may be necessary to carry out the provisions of this Section.
16		(Source: P.A. 79-1434.)
17		(215 ILCS 5/402) (from Ch. 73, par. 1014)
18		Sec. 402. Examinations, investigations and hearings. (1)
19		All examinations, investigations and hearings provided for by
20		this Code may be conducted either by the Director personally,
21		or by one or more of the actuaries, technical advisors,
22		deputies, supervisors or examiners employed or retained by the
23		Department and designated by the Director for such purpose.
24		When necessary to supplement its examination procedures, the
25		Department may retain independent actuaries deemed competent
26		by the Director, independent certified public accountants, or
27		qualified examiners of insurance companies deemed competent by
28		the Director, or any combination of the foregoing, the cost of
29		which shall be borne by the company or person being examined.
30		The Director may compensate independent actuaries, certified
31		public accountants and qualified examiners retained for
32		supplementing examination procedures in amounts not to exceed
33		the reasonable and customary charges for such services. The

1		Director may also accept as a part of the Department's
2		examination of any company or person (a) a report by an
3		independent actuary deemed competent by the Director or (b) a
4		report of an audit made by an independent certified public
5		accountant. Neither those persons so designated nor any members
6		of their immediate families shall be officers of, connected
7		with, or financially interested in any company other than as
8		policyholders, nor shall they be financially interested in any
9		other corporation or person affected by the examination,
10		investigation or hearing.
11		(2) All hearings provided for in this Code shall, unless
12		otherwise specially provided, be held at such time and place as
13		shall be designated in a notice which shall be given by the
14		Director in writing to the person or company whose interests
15		are affected, at least 10 days before the date designated
16		therein. The notice shall state the subject of inquiry and the
17		specific charges, if any. The hearings shall be held in the
18		City of Springfield, the City of Chicago, or in the county
19		where the principal business address of the person or company
20		affected is located. For a rate increase filing in medical
21		liability insurance under subsection (c) of Section 155.18 of
22		this Code, the Director may hold a hearing with the company and
23		policyholders present for the purpose of receiving testimony
24		from the company and policyholders regarding the rate increase.
25		The hearing must occur under written and express terms and
26		conditions that are sufficient to protect from disclosure
27		information that the subject medical liability insurance
28		company deems proprietary, confidential, or a trade secret. The
29		insurance company must give notice of the hearing time, date,
30		and location to medical liability insurance policyholders
31		whose rates have increased. Notice to policyholders may be
32		given through regular publications issued to policyholders or
33		by electronic means. Other than the cost of this notice, the
34		Department shall be responsible for the costs of this hearing.

1		(Source: P.A. 87-757.)
2		(215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
3		Sec. 1204. (A) The Director shall promulgate rules and
4		regulations which shall require each insurer licensed to write
5		property or casualty insurance in the State and each syndicate
6		doing business on the Illinois Insurance Exchange to record and
7		report its loss and expense experience and other data as may be
8		necessary to assess the relationship of insurance premiums and
9		related income as compared to insurance costs and expenses. The
10		Director may designate one or more rate service organizations
11		or advisory organizations to gather and compile such experience
12		and data. The Director shall require each insurer licensed to
13		write property or casualty insurance in this State and each
14		syndicate doing business on the Illinois Insurance Exchange to
15		submit a report, on a form furnished by the Director, showing
16		its direct writings in this State and companywide.
17		(B) Such report required by subsection (A) of this Section
18		may include, but not be limited to, the following specific
19		types of insurance written by such insurer:
20		(1) Political subdivision liability insurance reported
21		separately in the following categories:
22		(a) municipalities;
23		(b) school districts;
24		(c) other political subdivisions;
25		(2) Public official liability insurance;
26		(3) Dram shop liability insurance;
27		(4) Day care center liability insurance;
28		(5) Labor, fraternal or religious organizations
29		liability insurance;
30		(6) Errors and omissions liability insurance;
31		(7) Officers and directors liability insurance
32		reported separately as follows:
33		(a) non-profit entities;

1		(b) for-profit entities;
2		(8) Products liability insurance;
3		(9) Medical malpractice insurance;
4		(10) Attorney malpractice insurance;
5		(11) Architects and engineers malpractice insurance;
6		and
7		(12) Motor vehicle insurance reported separately for
8		commercial and private passenger vehicles as follows:
9		(a) motor vehicle physical damage insurance;
10		(b) motor vehicle liability insurance.
11		(C) Such report may include, but need not be limited to the
12		following data, both specific to this State and companywide, in
13		the aggregate or by type of insurance for the previous year on
14		a calendar year basis:
15		(1) Direct premiums written;
16		(2) Direct premiums earned;
17		(3) Number of policies;
18		(4) Net investment income, using appropriate estimates
19		where necessary;
20		(5) Losses paid;
21		(6) Losses incurred;
22		(7) Loss reserves:
23		(a) Losses unpaid on reported claims;
24		(b) Losses unpaid on incurred but not reported
25		claims;
26		(8) Number of claims:
27		(a) Paid claims;
28		(b) Arising claims;
29		(9) Loss adjustment expenses:
30		(a) Allocated loss adjustment expenses;
31		(b) Unallocated loss adjustment expenses;
32		(10) Net underwriting gain or loss;
33		(11) Net operation gain or loss, including net
34		investment income;

1		(12) Any other information requested by the Director.
2		(C-5) Additional information required from medical
3		malpractice insurers.
4		(1) In addition to the other requirements of this
5		Section, all medical malpractice insurers shall include
6		the following information in the report required by
7		subsection (A) of this Section in such form and under such
8		terms and conditions as may be prescribed by the Director:
9		(a) paid and incurred losses by county for each of
10		the past 10 policy years; and
11		(b) earned exposures by ISO code, policy type, and
12		policy year by county for each of the past 10 years.
13		(2) All information collected by the Director under
14		paragraph (1) of this subsection (C-5) shall be made
15		available, on an aggregate basis, to the General Assembly
16		and the general public. This provision shall supersede any
17		other provision of law that may otherwise protect such
18		information from public disclosure as confidential. The
19		identity of the plaintiff, the defendant, the attorneys,
20		and the company shall not be disclosed.
21		(D) In addition to the information which may be requested
22		under subsection (C), the Director may also request on a
23		companywide, aggregate basis, Federal Income Tax recoverable,
24		net realized capital gain or loss, net unrealized capital gain
25		or loss, and all other expenses not requested in subsection (C)
26		above.
27		(E) Violations - Suspensions - Revocations.
28		(1) Any company or person subject to this Article, who
29		willfully or repeatedly fails to observe or who otherwise
30		violates any of the provisions of this Article or any rule
31		or regulation promulgated by the Director under authority
32		of this Article or any final order of the Director entered
33		under the authority of this Article shall by civil penalty
34		forfeit to the State of Illinois a sum not to exceed

1		$2,000. Each day during which a violation occurs
2		constitutes a separate offense.
3		(2) No forfeiture liability under paragraph (1) of this
4		subsection may attach unless a written notice of apparent
5		liability has been issued by the Director and received by
6		the respondent, or the Director sends written notice of
7		apparent liability by registered or certified mail, return
8		receipt requested, to the last known address of the
9		respondent. Any respondent so notified must be granted an
10		opportunity to request a hearing within 10 days from
11		receipt of notice, or to show in writing, why he should not
12		be held liable. A notice issued under this Section must set
13		forth the date, facts and nature of the act or omission
14		with which the respondent is charged and must specifically
15		identify the particular provision of this Article, rule,
16		regulation or order of which a violation is charged.
17		(3) No forfeiture liability under paragraph (1) of this
18		subsection may attach for any violation occurring more than
19		2 years prior to the date of issuance of the notice of
20		apparent liability and in no event may the total civil
21		penalty forfeiture imposed for the acts or omissions set
22		forth in any one notice of apparent liability exceed
23		$100,000.
24		(4) All administrative hearings conducted pursuant to
25		this Article are subject to 50 Ill. Adm. Code 2402 and all
26		administrative hearings are subject to the Administrative
27		Review Law.
28		(5) The civil penalty forfeitures provided for in this
29		Section are payable to the General Revenue Fund of the
30		State of Illinois, and may be recovered in a civil suit in
31		the name of the State of Illinois brought in the Circuit
32		Court in Sangamon County or in the Circuit Court of the
33		county where the respondent is domiciled or has its
34		principal operating office.

1		(6) In any case where the Director issues a notice of
2		apparent liability looking toward the imposition of a civil
3		penalty forfeiture under this Section that fact may not be
4		used in any other proceeding before the Director to the
5		prejudice of the respondent to whom the notice was issued,
6		unless (a) the civil penalty forfeiture has been paid, or
7		(b) a court has ordered payment of the civil penalty
8		forfeiture and that order has become final.
9		(7) When any person or company has a license or
10		certificate of authority under this Code and knowingly
11		fails or refuses to comply with a lawful order of the
12		Director requiring compliance with this Article, entered
13		after notice and hearing, within the period of time
14		specified in the order, the Director may, in addition to
15		any other penalty or authority provided, revoke or refuse
16		to renew the license or certificate of authority of such
17		person or company, or may suspend the license or
18		certificate of authority of such person or company until
19		compliance with such order has been obtained.
20		(8) When any person or company has a license or
21		certificate of authority under this Code and knowingly
22		fails or refuses to comply with any provisions of this
23		Article, the Director may, after notice and hearing, in
24		addition to any other penalty provided, revoke or refuse to
25		renew the license or certificate of authority of such
26		person or company, or may suspend the license or
27		certificate of authority of such person or company, until
28		compliance with such provision of this Article has been
29		obtained.
30		(9) No suspension or revocation under this Section may
31		become effective until 5 days from the date that the notice
32		of suspension or revocation has been personally delivered
33		or delivered by registered or certified mail to the company
34		or person. A suspension or revocation under this Section is

1		stayed upon the filing, by the company or person, of a
2		petition for judicial review under the Administrative
3		Review Law.
4		(Source: P.A. 93-32, eff. 7-1-03.)

5		Section 315. The Medical Practice Act of 1987 is amended by
6		changing Sections 7, 22, 23, 24, and 36 as follows:
7		(225 ILCS 60/7) (from Ch. 111, par. 4400-7)
8		(Section scheduled to be repealed on January 1, 2007)
9		Sec. 7. Medical Disciplinary Board.
10		(A) There is hereby created the Illinois State Medical
11		Disciplinary Board (hereinafter referred to as the
12		"Disciplinary Board"). The Disciplinary Board shall consist of
13		9 members, to be appointed by the Governor by and with the
14		advice and consent of the Senate. All shall be residents of the
15		State, not more than 5 of whom shall be members of the same
16		political party. Five members shall be physicians licensed to
17		practice medicine in all of its branches in Illinois possessing
18		the degree of doctor of medicine. Two shall be members of the
19		public, who shall not be engaged in any way, directly or
20		indirectly, as providers of health care. The 2 public members
21		shall act as voting members. One member shall be a physician
22		licensed to practice in Illinois possessing the degree of
23		doctor of osteopathy or osteopathic medicine. One member shall
24		be a physician licensed to practice in Illinois and possessing
25		the degree of doctor of chiropractic.
26		(B) Members of the Disciplinary Board shall be appointed
27		for terms of 4 years. Upon the expiration of the term of any
28		member, their successor shall be appointed for a term of 4
29		years by the Governor by and with the advice and consent of the
30		Senate. The Governor shall fill any vacancy for the remainder
31		of the unexpired term by and with the advice and consent of the
32		Senate. Upon recommendation of the Board, any member of the

1		Disciplinary Board may be removed by the Governor for
2		misfeasance, malfeasance, or wilful neglect of duty, after
3		notice, and a public hearing, unless such notice and hearing
4		shall be expressly waived in writing. Each member shall serve
5		on the Disciplinary Board until their successor is appointed
6		and qualified. No member of the Disciplinary Board shall serve
7		more than 2 consecutive 4 year terms.
8		In making appointments the Governor shall attempt to insure
9		that the various social and geographic regions of the State of
10		Illinois are properly represented.
11		In making the designation of persons to act for the several
12		professions represented on the Disciplinary Board, the
13		Governor shall give due consideration to recommendations by
14		members of the respective professions and by organizations
15		therein.
16		(C) The Disciplinary Board shall annually elect one of its
17		voting members as chairperson and one as vice chairperson. No
18		officer shall be elected more than twice in succession to the
19		same office. Each officer shall serve until their successor has
20		been elected and qualified.
21		(D) (Blank).
22		(E) Four voting members of the Disciplinary Board shall
23		constitute a quorum. A vacancy in the membership of the
24		Disciplinary Board shall not impair the right of a quorum to
25		exercise all the rights and perform all the duties of the
26		Disciplinary Board. Any action taken by the Disciplinary Board
27		under this Act may be authorized by resolution at any regular
28		or special meeting and each such resolution shall take effect
29		immediately. The Disciplinary Board shall meet at least
30		quarterly. The Disciplinary Board is empowered to adopt all
31		rules and regulations necessary and incident to the powers
32		granted to it under this Act.
33		(F) Each member, and member-officer, of the Disciplinary
34		Board shall receive a per diem stipend as the Director of the

1		Department, hereinafter referred to as the Director, shall
2		determine. The Director shall also determine the per diem
3		stipend that each ex-officio member shall receive. Each member
4		shall be paid their necessary expenses while engaged in the
5		performance of their duties.
6		(G) The Director shall select a Chief Medical Coordinator
7		and not less than 2 a Deputy Medical Coordinators Coordinator
8		who shall not be members of the Disciplinary Board. Each
9		medical coordinator shall be a physician licensed to practice
10		medicine in all of its branches, and the Director shall set
11		their rates of compensation. The Director shall assign at least
12		one medical coordinator to a region composed of Cook County and
13		such other counties as the Director may deem appropriate, and
14		such medical coordinator or coordinators shall locate their
15		office in Chicago. The Director shall assign at least one the
16		remaining medical coordinator to a region composed of the
17		balance of counties in the State, and such medical coordinator
18		or coordinators shall locate their office in Springfield. Each
19		medical coordinator shall be the chief enforcement officer of
20		this Act in his or her their assigned region and shall serve at
21		the will of the Disciplinary Board.
22		The Director shall employ, in conformity with the Personnel
23		Code, not less than one full time investigator for every 2,500
24		5000 physicians licensed in the State. Each investigator shall
25		be a college graduate with at least 2 years' investigative
26		experience or one year advanced medical education. Upon the
27		written request of the Disciplinary Board, the Director shall
28		employ, in conformity with the Personnel Code, such other
29		professional, technical, investigative, and clerical help,
30		either on a full or part-time basis as the Disciplinary Board
31		deems necessary for the proper performance of its duties.
32		(H) Upon the specific request of the Disciplinary Board,
33		signed by either the chairman, vice chairman, or a medical
34		coordinator of the Disciplinary Board, the Department of Human

1		Services or the Department of State Police shall make available
2		any and all information that they have in their possession
3		regarding a particular case then under investigation by the
4		Disciplinary Board.
5		(I) Members of the Disciplinary Board shall be immune from
6		suit in any action based upon any disciplinary proceedings or
7		other acts performed in good faith as members of the
8		Disciplinary Board.
9		(J) The Disciplinary Board may compile and establish a
10		statewide roster of physicians and other medical
11		professionals, including the several medical specialties, of
12		such physicians and medical professionals, who have agreed to
13		serve from time to time as advisors to the medical
14		coordinators. Such advisors shall assist the medical
15		coordinators or the Disciplinary Board in their investigations
16		and participation in complaints against physicians. Such
17		advisors shall serve under contract and shall be reimbursed at
18		a reasonable rate for the services provided, plus reasonable
19		expenses incurred. While serving in this capacity, the advisor,
20		for any act undertaken in good faith and in the conduct of
21		their duties under this Section, shall be immune from civil
22		suit.
23		(Source: P.A. 93-138, eff. 7-10-03.)
24		(225 ILCS 60/22) (from Ch. 111, par. 4400-22)
25		(Section scheduled to be repealed on January 1, 2007)
26		Sec. 22. Disciplinary action.
27		(A) The Department may revoke, suspend, place on
28		probationary status, refuse to renew, or take any other
29		disciplinary action as the Department may deem proper with
30		regard to the license or visiting professor permit of any
31		person issued under this Act to practice medicine, or to treat
32		human ailments without the use of drugs and without operative
33		surgery upon any of the following grounds:

1		(1) Performance of an elective abortion in any place,
2		locale, facility, or institution other than:
3		(a) a facility licensed pursuant to the Ambulatory
4		Surgical Treatment Center Act;
5		(b) an institution licensed under the Hospital
6		Licensing Act; or
7		(c) an ambulatory surgical treatment center or
8		hospitalization or care facility maintained by the
9		State or any agency thereof, where such department or
10		agency has authority under law to establish and enforce
11		standards for the ambulatory surgical treatment
12		centers, hospitalization, or care facilities under its
13		management and control; or
14		(d) ambulatory surgical treatment centers,
15		hospitalization or care facilities maintained by the
16		Federal Government; or
17		(e) ambulatory surgical treatment centers,
18		hospitalization or care facilities maintained by any
19		university or college established under the laws of
20		this State and supported principally by public funds
21		raised by taxation.
22		(2) Performance of an abortion procedure in a wilful
23		and wanton manner on a woman who was not pregnant at the
24		time the abortion procedure was performed.
25		(3) The conviction of a felony in this or any other
26		jurisdiction, except as otherwise provided in subsection B
27		of this Section, whether or not related to practice under
28		this Act, or the entry of a guilty or nolo contendere plea
29		to a felony charge.
30		(4) Gross negligence in practice under this Act.
31		(5) Engaging in dishonorable, unethical or
32		unprofessional conduct of a character likely to deceive,
33		defraud or harm the public.
34		(6) Obtaining any fee by fraud, deceit, or

1		misrepresentation.
2		(7) Habitual or excessive use or abuse of drugs defined
3		in law as controlled substances, of alcohol, or of any
4		other substances which results in the inability to practice
5		with reasonable judgment, skill or safety.
6		(8) Practicing under a false or, except as provided by
7		law, an assumed name.
8		(9) Fraud or misrepresentation in applying for, or
9		procuring, a license under this Act or in connection with
10		applying for renewal of a license under this Act.
11		(10) Making a false or misleading statement regarding
12		their skill or the efficacy or value of the medicine,
13		treatment, or remedy prescribed by them at their direction
14		in the treatment of any disease or other condition of the
15		body or mind.
16		(11) Allowing another person or organization to use
17		their license, procured under this Act, to practice.
18		(12) Disciplinary action of another state or
19		jurisdiction against a license or other authorization to
20		practice as a medical doctor, doctor of osteopathy, doctor
21		of osteopathic medicine or doctor of chiropractic, a
22		certified copy of the record of the action taken by the
23		other state or jurisdiction being prima facie evidence
24		thereof.
25		(13) Violation of any provision of this Act or of the
26		Medical Practice Act prior to the repeal of that Act, or
27		violation of the rules, or a final administrative action of
28		the Director, after consideration of the recommendation of
29		the Disciplinary Board.
30		(14) Dividing with anyone other than physicians with
31		whom the licensee practices in a partnership, Professional
32		Association, limited liability company, or Medical or
33		Professional Corporation any fee, commission, rebate or
34		other form of compensation for any professional services

1		not actually and personally rendered. Nothing contained in
2		this subsection prohibits persons holding valid and
3		current licenses under this Act from practicing medicine in
4		partnership under a partnership agreement, including a
5		limited liability partnership, in a limited liability
6		company under the Limited Liability Company Act, in a
7		corporation authorized by the Medical Corporation Act, as
8		an association authorized by the Professional Association
9		Act, or in a corporation under the Professional Corporation
10		Act or from pooling, sharing, dividing or apportioning the
11		fees and monies received by them or by the partnership,
12		corporation or association in accordance with the
13		partnership agreement or the policies of the Board of
14		Directors of the corporation or association. Nothing
15		contained in this subsection prohibits 2 or more
16		corporations authorized by the Medical Corporation Act,
17		from forming a partnership or joint venture of such
18		corporations, and providing medical, surgical and
19		scientific research and knowledge by employees of these
20		corporations if such employees are licensed under this Act,
21		or from pooling, sharing, dividing, or apportioning the
22		fees and monies received by the partnership or joint
23		venture in accordance with the partnership or joint venture
24		agreement. Nothing contained in this subsection shall
25		abrogate the right of 2 or more persons, holding valid and
26		current licenses under this Act, to each receive adequate
27		compensation for concurrently rendering professional
28		services to a patient and divide a fee; provided, the
29		patient has full knowledge of the division, and, provided,
30		that the division is made in proportion to the services
31		performed and responsibility assumed by each.
32		(15) A finding by the Medical Disciplinary Board that
33		the registrant after having his or her license placed on
34		probationary status or subjected to conditions or

1		restrictions violated the terms of the probation or failed
2		to comply with such terms or conditions.
3		(16) Abandonment of a patient.
4		(17) Prescribing, selling, administering,
5		distributing, giving or self-administering any drug
6		classified as a controlled substance (designated product)
7		or narcotic for other than medically accepted therapeutic
8		purposes.
9		(18) Promotion of the sale of drugs, devices,
10		appliances or goods provided for a patient in such manner
11		as to exploit the patient for financial gain of the
12		physician.
13		(19) Offering, undertaking or agreeing to cure or treat
14		disease by a secret method, procedure, treatment or
15		medicine, or the treating, operating or prescribing for any
16		human condition by a method, means or procedure which the
17		licensee refuses to divulge upon demand of the Department.
18		(20) Immoral conduct in the commission of any act
19		including, but not limited to, commission of an act of
20		sexual misconduct related to the licensee's practice.
21		(21) Wilfully making or filing false records or reports
22		in his or her practice as a physician, including, but not
23		limited to, false records to support claims against the
24		medical assistance program of the Department of Public Aid
25		under the Illinois Public Aid Code.
26		(22) Wilful omission to file or record, or wilfully
27		impeding the filing or recording, or inducing another
28		person to omit to file or record, medical reports as
29		required by law, or wilfully failing to report an instance
30		of suspected abuse or neglect as required by law.
31		(23) Being named as a perpetrator in an indicated
32		report by the Department of Children and Family Services
33		under the Abused and Neglected Child Reporting Act, and
34		upon proof by clear and convincing evidence that the

1		licensee has caused a child to be an abused child or
2		neglected child as defined in the Abused and Neglected
3		Child Reporting Act.
4		(24) Solicitation of professional patronage by any
5		corporation, agents or persons, or profiting from those
6		representing themselves to be agents of the licensee.
7		(25) Gross and wilful and continued overcharging for
8		professional services, including filing false statements
9		for collection of fees for which services are not rendered,
10		including, but not limited to, filing such false statements
11		for collection of monies for services not rendered from the
12		medical assistance program of the Department of Public Aid
13		under the Illinois Public Aid Code.
14		(26) A pattern of practice or other behavior which
15		demonstrates incapacity or incompetence to practice under
16		this Act.
17		(27) Mental illness or disability which results in the
18		inability to practice under this Act with reasonable
19		judgment, skill or safety.
20		(28) Physical illness, including, but not limited to,
21		deterioration through the aging process, or loss of motor
22		skill which results in a physician's inability to practice
23		under this Act with reasonable judgment, skill or safety.
24		(29) Cheating on or attempt to subvert the licensing
25		examinations administered under this Act.
26		(30) Wilfully or negligently violating the
27		confidentiality between physician and patient except as
28		required by law.
29		(31) The use of any false, fraudulent, or deceptive
30		statement in any document connected with practice under
31		this Act.
32		(32) Aiding and abetting an individual not licensed
33		under this Act in the practice of a profession licensed
34		under this Act.

1		(33) Violating state or federal laws or regulations
2		relating to controlled substances, legend drugs, or
3		ephedra, as defined in the Ephedra Prohibition Act.
4		(34) Failure to report to the Department any adverse
5		final action taken against them by another licensing
6		jurisdiction (any other state or any territory of the
7		United States or any foreign state or country), by any peer
8		review body, by any health care institution, by any
9		professional society or association related to practice
10		under this Act, by any governmental agency, by any law
11		enforcement agency, or by any court for acts or conduct
12		similar to acts or conduct which would constitute grounds
13		for action as defined in this Section.
14		(35) Failure to report to the Department surrender of a
15		license or authorization to practice as a medical doctor, a
16		doctor of osteopathy, a doctor of osteopathic medicine, or
17		doctor of chiropractic in another state or jurisdiction, or
18		surrender of membership on any medical staff or in any
19		medical or professional association or society, while
20		under disciplinary investigation by any of those
21		authorities or bodies, for acts or conduct similar to acts
22		or conduct which would constitute grounds for action as
23		defined in this Section.
24		(36) Failure to report to the Department any adverse
25		judgment, settlement, or award arising from a liability
26		claim related to acts or conduct similar to acts or conduct
27		which would constitute grounds for action as defined in
28		this Section.
29		(37) Failure to transfer copies of medical records as
30		required by law.
31		(38) Failure to furnish the Department, its
32		investigators or representatives, relevant information,
33		legally requested by the Department after consultation
34		with the Chief Medical Coordinator or the Deputy Medical

1		Coordinator.
2		(39) Violating the Health Care Worker Self-Referral
3		Act.
4		(40) Willful failure to provide notice when notice is
5		required under the Parental Notice of Abortion Act of 1995.
6		(41) Failure to establish and maintain records of
7		patient care and treatment as required by this law.
8		(42) Entering into an excessive number of written
9		collaborative agreements with licensed advanced practice
10		nurses resulting in an inability to adequately collaborate
11		and provide medical direction.
12		(43) Repeated failure to adequately collaborate with
13		or provide medical direction to a licensed advanced
14		practice nurse.
15		Except for actions involving the ground numbered (26), all
16		All proceedings to suspend, revoke, place on probationary
17		status, or take any other disciplinary action as the Department
18		may deem proper, with regard to a license on any of the
19		foregoing grounds, must be commenced within 5 3 years next
20		after receipt by the Department of a complaint alleging the
21		commission of or notice of the conviction order for any of the
22		acts described herein. Except for the grounds numbered (8),
23		(9), (26), and (29), no action shall be commenced more than 10
24		5 years after the date of the incident or act alleged to have
25		violated this Section. For actions involving the ground
26		numbered (26), a pattern of practice or other behavior includes
27		all incidents alleged to be part of the pattern of practice or
28		other behavior that occurred or a report pursuant to Section 23
29		of this Act received within the 10-year period preceding the
30		filing of the complaint. In the event of the settlement of any
31		claim or cause of action in favor of the claimant or the
32		reduction to final judgment of any civil action in favor of the
33		plaintiff, such claim, cause of action or civil action being
34		grounded on the allegation that a person licensed under this

1		Act was negligent in providing care, the Department shall have
2		an additional period of 2 years one year from the date of
3		notification to the Department under Section 23 of this Act of
4		such settlement or final judgment in which to investigate and
5		commence formal disciplinary proceedings under Section 36 of
6		this Act, except as otherwise provided by law. The Department
7		shall expunge the records of discipline solely for
8		administrative matters 3 years after final disposition or after
9		the statute of limitations has expired, whichever is later. The
10		time during which the holder of the license was outside the
11		State of Illinois shall not be included within any period of
12		time limiting the commencement of disciplinary action by the
13		Department.
14		The entry of an order or judgment by any circuit court
15		establishing that any person holding a license under this Act
16		is a person in need of mental treatment operates as a
17		suspension of that license. That person may resume their
18		practice only upon the entry of a Departmental order based upon
19		a finding by the Medical Disciplinary Board that they have been
20		determined to be recovered from mental illness by the court and
21		upon the Disciplinary Board's recommendation that they be
22		permitted to resume their practice.
23		The Department may refuse to issue or take disciplinary
24		action concerning the license of any person who fails to file a
25		return, or to pay the tax, penalty or interest shown in a filed
26		return, or to pay any final assessment of tax, penalty or
27		interest, as required by any tax Act administered by the
28		Illinois Department of Revenue, until such time as the
29		requirements of any such tax Act are satisfied as determined by
30		the Illinois Department of Revenue.
31		The Department, upon the recommendation of the
32		Disciplinary Board, shall adopt rules which set forth standards
33		to be used in determining:
34		(a) when a person will be deemed sufficiently

1		rehabilitated to warrant the public trust;
2		(b) what constitutes dishonorable, unethical or
3		unprofessional conduct of a character likely to deceive,
4		defraud, or harm the public;
5		(c) what constitutes immoral conduct in the commission
6		of any act, including, but not limited to, commission of an
7		act of sexual misconduct related to the licensee's
8		practice; and
9		(d) what constitutes gross negligence in the practice
10		of medicine.
11		However, no such rule shall be admissible into evidence in
12		any civil action except for review of a licensing or other
13		disciplinary action under this Act.
14		In enforcing this Section, the Medical Disciplinary Board,
15		upon a showing of a possible violation, may compel any
16		individual licensed to practice under this Act, or who has
17		applied for licensure or a permit pursuant to this Act, to
18		submit to a mental or physical examination, or both, as
19		required by and at the expense of the Department. The examining
20		physician or physicians shall be those specifically designated
21		by the Disciplinary Board. The Medical Disciplinary Board or
22		the Department may order the examining physician to present
23		testimony concerning this mental or physical examination of the
24		licensee or applicant. No information shall be excluded by
25		reason of any common law or statutory privilege relating to
26		communication between the licensee or applicant and the
27		examining physician. The individual to be examined may have, at
28		his or her own expense, another physician of his or her choice
29		present during all aspects of the examination. Failure of any
30		individual to submit to mental or physical examination, when
31		directed, shall be grounds for suspension of his or her license
32		until such time as the individual submits to the examination if
33		the Disciplinary Board finds, after notice and hearing, that
34		the refusal to submit to the examination was without reasonable

1		cause. If the Disciplinary Board finds a physician unable to
2		practice because of the reasons set forth in this Section, the
3		Disciplinary Board shall require such physician to submit to
4		care, counseling, or treatment by physicians approved or
5		designated by the Disciplinary Board, as a condition for
6		continued, reinstated, or renewed licensure to practice. Any
7		physician, whose license was granted pursuant to Sections 9,
8		17, or 19 of this Act, or, continued, reinstated, renewed,
9		disciplined or supervised, subject to such terms, conditions or
10		restrictions who shall fail to comply with such terms,
11		conditions or restrictions, or to complete a required program
12		of care, counseling, or treatment, as determined by the Chief
13		Medical Coordinator or Deputy Medical Coordinators, shall be
14		referred to the Director for a determination as to whether the
15		licensee shall have their license suspended immediately,
16		pending a hearing by the Disciplinary Board. In instances in
17		which the Director immediately suspends a license under this
18		Section, a hearing upon such person's license must be convened
19		by the Disciplinary Board within 15 days after such suspension
20		and completed without appreciable delay. The Disciplinary
21		Board shall have the authority to review the subject
22		physician's record of treatment and counseling regarding the
23		impairment, to the extent permitted by applicable federal
24		statutes and regulations safeguarding the confidentiality of
25		medical records.
26		An individual licensed under this Act, affected under this
27		Section, shall be afforded an opportunity to demonstrate to the
28		Disciplinary Board that they can resume practice in compliance
29		with acceptable and prevailing standards under the provisions
30		of their license.
31		The Department may promulgate rules for the imposition of
32		fines in disciplinary cases, not to exceed $10,000 $5,000 for
33		each violation of this Act. Fines may be imposed in conjunction
34		with other forms of disciplinary action, but shall not be the

1		exclusive disposition of any disciplinary action arising out of
2		conduct resulting in death or injury to a patient. Any funds
3		collected from such fines shall be deposited in the Medical
4		Disciplinary Fund.
5		(B) The Department shall revoke the license or visiting
6		permit of any person issued under this Act to practice medicine
7		or to treat human ailments without the use of drugs and without
8		operative surgery, who has been convicted a second time of
9		committing any felony under the Illinois Controlled Substances
10		Act, or who has been convicted a second time of committing a
11		Class 1 felony under Sections 8A-3 and 8A-6 of the Illinois
12		Public Aid Code. A person whose license or visiting permit is
13		revoked under this subsection B of Section 22 of this Act shall
14		be prohibited from practicing medicine or treating human
15		ailments without the use of drugs and without operative
16		surgery.
17		(C) The Medical Disciplinary Board shall recommend to the
18		Department civil penalties and any other appropriate
19		discipline in disciplinary cases when the Board finds that a
20		physician willfully performed an abortion with actual
21		knowledge that the person upon whom the abortion has been
22		performed is a minor or an incompetent person without notice as
23		required under the Parental Notice of Abortion Act of 1995.
24		Upon the Board's recommendation, the Department shall impose,
25		for the first violation, a civil penalty of $1,000 and for a
26		second or subsequent violation, a civil penalty of $5,000.
27		(Source: P.A. 89-18, eff. 6-1-95; 89-201, eff. 1-1-96; 89-626,
28		eff. 8-9-96; 89-702, eff. 7-1-97; 90-742, eff. 8-13-98.)
29		(225 ILCS 60/23) (from Ch. 111, par. 4400-23)
30		(Section scheduled to be repealed on January 1, 2007)
31		Sec. 23. Reports relating to professional conduct and
32		capacity.
33		(A) Entities required to report.

1		(1) Health care institutions. The chief administrator
2		or executive officer of any health care institution
3		licensed by the Illinois Department of Public Health shall
4		report to the Disciplinary Board when any person's clinical
5		privileges are terminated or are restricted based on a
6		final determination, in accordance with that institution's
7		by-laws or rules and regulations, that a person has either
8		committed an act or acts which may directly threaten
9		patient care, and not of an administrative nature, or that
10		a person may be mentally or physically disabled in such a
11		manner as to endanger patients under that person's care.
12		Such officer also shall report if a person accepts
13		voluntary termination or restriction of clinical
14		privileges in lieu of formal action based upon conduct
15		related directly to patient care and not of an
16		administrative nature, or in lieu of formal action seeking
17		to determine whether a person may be mentally or physically
18		disabled in such a manner as to endanger patients under
19		that person's care. The Medical Disciplinary Board shall,
20		by rule, provide for the reporting to it of all instances
21		in which a person, licensed under this Act, who is impaired
22		by reason of age, drug or alcohol abuse or physical or
23		mental impairment, is under supervision and, where
24		appropriate, is in a program of rehabilitation. Such
25		reports shall be strictly confidential and may be reviewed
26		and considered only by the members of the Disciplinary
27		Board, or by authorized staff as provided by rules of the
28		Disciplinary Board. Provisions shall be made for the
29		periodic report of the status of any such person not less
30		than twice annually in order that the Disciplinary Board
31		shall have current information upon which to determine the
32		status of any such person. Such initial and periodic
33		reports of impaired physicians shall not be considered
34		records within the meaning of The State Records Act and

1		shall be disposed of, following a determination by the
2		Disciplinary Board that such reports are no longer
3		required, in a manner and at such time as the Disciplinary
4		Board shall determine by rule. The filing of such reports
5		shall be construed as the filing of a report for purposes
6		of subsection (C) of this Section.
7		(2) Professional associations. The President or chief
8		executive officer of any association or society, of persons
9		licensed under this Act, operating within this State shall
10		report to the Disciplinary Board when the association or
11		society renders a final determination that a person has
12		committed unprofessional conduct related directly to
13		patient care or that a person may be mentally or physically
14		disabled in such a manner as to endanger patients under
15		that person's care.
16		(3) Professional liability insurers. Every insurance
17		company which offers policies of professional liability
18		insurance to persons licensed under this Act, or any other
19		entity which seeks to indemnify the professional liability
20		of a person licensed under this Act, shall report to the
21		Disciplinary Board the settlement of any claim or cause of
22		action, or final judgment rendered in any cause of action,
23		which alleged negligence in the furnishing of medical care
24		by such licensed person when such settlement or final
25		judgment is in favor of the plaintiff.
26		(4) State's Attorneys. The State's Attorney of each
27		county shall report to the Disciplinary Board all instances
28		in which a person licensed under this Act is convicted or
29		otherwise found guilty of the commission of any felony. The
30		State's Attorney of each county may report to the
31		Disciplinary Board through a verified complaint any
32		instance in which the State's Attorney believes that a
33		physician has willfully violated the notice requirements
34		of the Parental Notice of Abortion Act of 1995.

1		(5) State agencies. All agencies, boards, commissions,
2		departments, or other instrumentalities of the government
3		of the State of Illinois shall report to the Disciplinary
4		Board any instance arising in connection with the
5		operations of such agency, including the administration of
6		any law by such agency, in which a person licensed under
7		this Act has either committed an act or acts which may be a
8		violation of this Act or which may constitute
9		unprofessional conduct related directly to patient care or
10		which indicates that a person licensed under this Act may
11		be mentally or physically disabled in such a manner as to
12		endanger patients under that person's care.
13		(B) Mandatory reporting. All reports required by items
14		(34), (35), and (36) of subsection (A) of Section 22 and by
15		Section 23 shall be submitted to the Disciplinary Board in a
16		timely fashion. The reports shall be filed in writing within 60
17		days after a determination that a report is required under this
18		Act. All reports shall contain the following information:
19		(1) The name, address and telephone number of the
20		person making the report.
21		(2) The name, address and telephone number of the
22		person who is the subject of the report.
23		(3) The name and date of birth or other means of
24		identification of any patient or patients whose treatment
25		is a subject of the report, if available, or other means of
26		identification if such information is not available,
27		identification of the hospital or other healthcare
28		facility where the care at issue in the report was
29		rendered, provided, however, no medical records may be
30		revealed without the written consent of the patient or
31		patients.
32		(4) A brief description of the facts which gave rise to
33		the issuance of the report, including the dates of any
34		occurrences deemed to necessitate the filing of the report.

1		(5) If court action is involved, the identity of the
2		court in which the action is filed, along with the docket
3		number and date of filing of the action.
4		(6) Any further pertinent information which the
5		reporting party deems to be an aid in the evaluation of the
6		report.
7		The Department shall have the right to inform patients of
8		the right to provide written consent for the Department to
9		obtain copies of hospital and medical records. The Disciplinary
10		Board or Department may also exercise the power under Section
11		38 of this Act to subpoena copies of hospital or medical
12		records in mandatory report cases alleging death or permanent
13		bodily injury when consent to obtain records is not provided by
14		a patient or legal representative. Appropriate rules shall be
15		adopted by the Department with the approval of the Disciplinary
16		Board.
17		When the Department has received written reports
18		concerning incidents required to be reported in items (34),
19		(35), and (36) of subsection (A) of Section 22, the licensee's
20		failure to report the incident to the Department under those
21		items shall not be the sole grounds for disciplinary action.
22		Nothing contained in this Section shall act to in any way,
23		waive or modify the confidentiality of medical reports and
24		committee reports to the extent provided by law. Any
25		information reported or disclosed shall be kept for the
26		confidential use of the Disciplinary Board, the Medical
27		Coordinators, the Disciplinary Board's attorneys, the medical
28		investigative staff, and authorized clerical staff, as
29		provided in this Act, and shall be afforded the same status as
30		is provided information concerning medical studies in Part 21
31		of Article VIII of the Code of Civil Procedure, except that the
32		Department may disclose information and documents to a federal,
33		State, or local law enforcement agency pursuant to a subpoena
34		in an ongoing criminal investigation. Furthermore, information

1		and documents disclosed to a federal, State, or local law
2		enforcement agency may be used by that agency only for the
3		investigation and prosecution of a criminal offense.
4		(C) Immunity from prosecution. Any individual or
5		organization acting in good faith, and not in a wilful and
6		wanton manner, in complying with this Act by providing any
7		report or other information to the Disciplinary Board or a peer
8		review committee, or assisting in the investigation or
9		preparation of such information, or by voluntarily reporting to
10		the Disciplinary Board or a peer review committee information
11		regarding alleged errors or negligence by a person licensed
12		under this Act, or by participating in proceedings of the
13		Disciplinary Board or a peer review committee, or by serving as
14		a member of the Disciplinary Board or a peer review committee,
15		shall not, as a result of such actions, be subject to criminal
16		prosecution or civil damages.
17		(D) Indemnification. Members of the Disciplinary Board,
18		the Medical Coordinators, the Disciplinary Board's attorneys,
19		the medical investigative staff, physicians retained under
20		contract to assist and advise the medical coordinators in the
21		investigation, and authorized clerical staff shall be
22		indemnified by the State for any actions occurring within the
23		scope of services on the Disciplinary Board, done in good faith
24		and not wilful and wanton in nature. The Attorney General shall
25		defend all such actions unless he or she determines either that
26		there would be a conflict of interest in such representation or
27		that the actions complained of were not in good faith or were
28		wilful and wanton.
29		Should the Attorney General decline representation, the
30		member shall have the right to employ counsel of his or her
31		choice, whose fees shall be provided by the State, after
32		approval by the Attorney General, unless there is a
33		determination by a court that the member's actions were not in
34		good faith or were wilful and wanton.

1		The member must notify the Attorney General within 7 days
2		of receipt of notice of the initiation of any action involving
3		services of the Disciplinary Board. Failure to so notify the
4		Attorney General shall constitute an absolute waiver of the
5		right to a defense and indemnification.
6		The Attorney General shall determine within 7 days after
7		receiving such notice, whether he or she will undertake to
8		represent the member.
9		(E) Deliberations of Disciplinary Board. Upon the receipt
10		of any report called for by this Act, other than those reports
11		of impaired persons licensed under this Act required pursuant
12		to the rules of the Disciplinary Board, the Disciplinary Board
13		shall notify in writing, by certified mail, the person who is
14		the subject of the report. Such notification shall be made
15		within 30 days of receipt by the Disciplinary Board of the
16		report.
17		The notification shall include a written notice setting
18		forth the person's right to examine the report. Included in
19		such notification shall be the address at which the file is
20		maintained, the name of the custodian of the reports, and the
21		telephone number at which the custodian may be reached. The
22		person who is the subject of the report shall submit a written
23		statement responding, clarifying, adding to, or proposing the
24		amending of the report previously filed. The person who is the
25		subject of the report shall also submit with the written
26		statement any medical records related to the report. The
27		statement and accompanying medical records shall become a
28		permanent part of the file and must be received by the
29		Disciplinary Board no more than 30 60 days after the date on
30		which the person was notified by the Disciplinary Board of the
31		existence of the original report.
32		The Disciplinary Board shall review all reports received by
33		it, together with any supporting information and responding
34		statements submitted by persons who are the subject of reports.

1		The review by the Disciplinary Board shall be in a timely
2		manner but in no event, shall the Disciplinary Board's initial
3		review of the material contained in each disciplinary file be
4		less than 61 days nor more than 180 days after the receipt of
5		the initial report by the Disciplinary Board.
6		When the Disciplinary Board makes its initial review of the
7		materials contained within its disciplinary files, the
8		Disciplinary Board shall, in writing, make a determination as
9		to whether there are sufficient facts to warrant further
10		investigation or action. Failure to make such determination
11		within the time provided shall be deemed to be a determination
12		that there are not sufficient facts to warrant further
13		investigation or action.
14		Should the Disciplinary Board find that there are not
15		sufficient facts to warrant further investigation, or action,
16		the report shall be accepted for filing and the matter shall be
17		deemed closed and so reported to the Director. The Director
18		shall then have 30 days to accept the Medical Disciplinary
19		Board's decision or request further investigation. The
20		Director shall inform the Board in writing of the decision to
21		request further investigation, including the specific reasons
22		for the decision. The individual or entity filing the original
23		report or complaint and the person who is the subject of the
24		report or complaint shall be notified in writing by the
25		Director of any final action on their report or complaint.
26		(F) Summary reports. The Disciplinary Board shall prepare,
27		on a timely basis, but in no event less than one every other
28		month, a summary report of final actions taken upon
29		disciplinary files maintained by the Disciplinary Board. The
30		summary reports shall be sent by the Disciplinary Board to
31		every health care facility licensed by the Illinois Department
32		of Public Health, every professional association and society of
33		persons licensed under this Act functioning on a statewide
34		basis in this State, the American Medical Association, the

1		American Osteopathic Association, the American Chiropractic
2		Association, all insurers providing professional liability
3		insurance to persons licensed under this Act in the State of
4		Illinois, the Federation of State Medical Licensing Boards, and
5		the Illinois Pharmacists Association.
6		(G) Any violation of this Section shall be a Class A
7		misdemeanor.
8		(H) If any such person violates the provisions of this
9		Section an action may be brought in the name of the People of
10		the State of Illinois, through the Attorney General of the
11		State of Illinois, for an order enjoining such violation or for
12		an order enforcing compliance with this Section. Upon filing of
13		a verified petition in such court, the court may issue a
14		temporary restraining order without notice or bond and may
15		preliminarily or permanently enjoin such violation, and if it
16		is established that such person has violated or is violating
17		the injunction, the court may punish the offender for contempt
18		of court. Proceedings under this paragraph shall be in addition
19		to, and not in lieu of, all other remedies and penalties
20		provided for by this Section.
21		(Source: P.A. 89-18, eff. 6-1-95; 89-702, eff. 7-1-97; 90-699,
22		eff. 1-1-99.)
23		(225 ILCS 60/24) (from Ch. 111, par. 4400-24)
24		(Section scheduled to be repealed on January 1, 2007)
25		Sec. 24. Report of violations; medical associations. Any
26		physician licensed under this Act, the Illinois State Medical
27		Society, the Illinois Association of Osteopathic Physicians
28		and Surgeons, the Illinois Chiropractic Society, the Illinois
29		Prairie State Chiropractic Association, or any component
30		societies of any of these 4 groups, and any other person, may
31		report to the Disciplinary Board any information the physician,
32		association, society, or person may have that appears to show
33		that a physician is or may be in violation of any of the

1		provisions of Section 22 of this Act.
2		The Department may enter into agreements with the Illinois
3		State Medical Society, the Illinois Association of Osteopathic
4		Physicians and Surgeons, the Illinois Prairie State
5		Chiropractic Association, or the Illinois Chiropractic Society
6		to allow these organizations to assist the Disciplinary Board
7		in the review of alleged violations of this Act. Subject to the
8		approval of the Department, any organization party to such an
9		agreement may subcontract with other individuals or
10		organizations to assist in review.
11		Any physician, association, society, or person
12		participating in good faith in the making of a report, under
13		this Act or participating in or assisting with an investigation
14		or review under this Act Section shall have immunity from any
15		civil, criminal, or other liability that might result by reason
16		of those actions.
17		The medical information in the custody of an entity under
18		contract with the Department participating in an investigation
19		or review shall be privileged and confidential to the same
20		extent as are information and reports under the provisions of
21		Part 21 of Article VIII of the Code of Civil Procedure.
22		Upon request by the Department after a mandatory report has
23		been filed with the Department, an attorney for any party
24		seeking to recover damages for injuries or death by reason of
25		medical, hospital, or other healing art malpractice shall
26		provide patient records related to the physician involved in
27		the disciplinary proceeding to the Department within 30 days of
28		the Department's request for use by the Department in any
29		disciplinary matter under this Act. An attorney who provides
30		patient records to the Department in accordance with this
31		requirement shall not be deemed to have violated any
32		attorney-client privilege. Notwithstanding any other provision
33		of law, consent by a patient shall not be required for the
34		provision of patient records in accordance with this

1		requirement.
2		For the purpose of any civil or criminal proceedings, the
3		good faith of any physician, association, society or person
4		shall be presumed. The Disciplinary Board may request the
5		Illinois State Medical Society, the Illinois Association of
6		Osteopathic Physicians and Surgeons, the Illinois Prairie
7		State Chiropractic Association, or the Illinois Chiropractic
8		Society to assist the Disciplinary Board in preparing for or
9		conducting any medical competency examination as the Board may
10		deem appropriate.
11		(Source: P.A. 88-324.)
12		(225 ILCS 60/36) (from Ch. 111, par. 4400-36)
13		(Section scheduled to be repealed on January 1, 2007)
14		Sec. 36. Upon the motion of either the Department or the
15		Disciplinary Board or upon the verified complaint in writing of
16		any person setting forth facts which, if proven, would
17		constitute grounds for suspension or revocation under Section
18		22 of this Act, the Department shall investigate the actions of
19		any person, so accused, who holds or represents that they hold
20		a license. Such person is hereinafter called the accused.
21		The Department shall, before suspending, revoking, placing
22		on probationary status, or taking any other disciplinary action
23		as the Department may deem proper with regard to any license at
24		least 30 days prior to the date set for the hearing, notify the
25		accused in writing of any charges made and the time and place
26		for a hearing of the charges before the Disciplinary Board,
27		direct them to file their written answer thereto to the
28		Disciplinary Board under oath within 20 days after the service
29		on them of such notice and inform them that if they fail to
30		file such answer default will be taken against them and their
31		license may be suspended, revoked, placed on probationary
32		status, or have other disciplinary action, including limiting
33		the scope, nature or extent of their practice, as the

1		Department may deem proper taken with regard thereto.
2		Where a physician has been found, upon complaint and
3		investigation of the Department, and after hearing, to have
4		performed an abortion procedure in a wilful and wanton manner
5		upon a woman who was not pregnant at the time such abortion
6		procedure was performed, the Department shall automatically
7		revoke the license of such physician to practice medicine in
8		Illinois.
9		Such written notice and any notice in such proceedings
10		thereafter may be served by delivery of the same, personally,
11		to the accused person, or by mailing the same by registered or
12		certified mail to the address last theretofore specified by the
13		accused in their last notification to the Department.
14		All information gathered by the Department during its
15		investigation including information subpoenaed under Section
16		23 or 38 of this Act and the investigative file shall be kept
17		for the confidential use of the Director, Disciplinary Board,
18		the Medical Coordinators, persons employed by contract to
19		advise the Medical Coordinator or the Department, the
20		Disciplinary Board's attorneys, the medical investigative
21		staff, and authorized clerical staff, as provided in this Act
22		and shall be afforded the same status as is provided
23		information concerning medical studies in Part 21 of Article
24		VIII of the Code of Civil Procedure, except that the Department
25		may disclose information and documents to a federal, State, or
26		local law enforcement agency pursuant to a subpoena in an
27		ongoing criminal investigation. Furthermore, information and
28		documents disclosed to a federal, State, or local law
29		enforcement agency may be used by that agency only for the
30		investigation and prosecution of a criminal offense.
31		(Source: P.A. 90-699, eff. 1-1-99.)

32		Section 320. The Clerks of Courts Act is amended by adding
33		Section 27.10 as follows:

1		(705 ILCS 105/27.10 new)
2		Sec. 27.10. Director of Insurance. Each clerk of the
3		circuit court shall provide to the Director of Insurance such
4		information as the Director of Insurance requests under Section
5		155.19 of the Illinois Insurance Code.

6		Section 325. The Health Care Arbitration Act is amended by
7		changing Sections 8 and 9 as follows:
8		(710 ILCS 15/8) (from Ch. 10, par. 208)
9		Sec. 8. Conditions. Every health care arbitration
10		agreement shall be subject to the following conditions:
11		(a) The agreement is not a condition to the rendering of
12		health care services by any party and the agreement has been
13		executed by the recipient of health care services at the
14		inception of or during the term of provision of services for a
15		specific cause by either a health care provider or a hospital;
16		and
17		(b) The agreement is a separate instrument complete in
18		itself and not a part of any other contract or instrument and
19		an executed copy of the agreement shall be provided to the
20		patient or the patient's legal representative upon signing; and
21		(c) The agreement may not limit, impair, or waive any
22		substantive rights or defenses of any party, including the
23		statute of limitations; and
24		(d) The agreement shall not limit, impair, or waive the
25		procedural rights to be heard, to present material evidence, to
26		cross-examine witnesses, and to be represented by an attorney,
27		or other procedural rights of due process of any party.
28		(e) (Blank). As a part of the discharge planning process
29		the patient or, if appropriate, members of his family must be
30		given a copy of the health care arbitration agreement
31		previously executed by or for the patient and shall re-affirm

1		it. Failure to comply with this provision during the discharge
2		planning process shall void the health care arbitration
3		agreement.
4		(f) This amendatory Act of the 93rd General Assembly
5		applies to health care arbitration agreements executed on or
6		after its effective date.
7		(Source: P.A. 80-1012.)
8		(710 ILCS 15/9) (from Ch. 10, par. 209)
9		Sec. 9. Mandatory Provisions.
10		(a) Every health care arbitration agreement shall be
11		clearly captioned "Health Care Arbitration Agreement".
12		(b) Every health care arbitration agreement in relation to
13		health care services rendered during hospitalization shall
14		specify the date of commencement of hospitalization. Every
15		health care arbitration agreement in relation to health care
16		services not rendered during hospitalization shall state the
17		specific cause for which the services are provided.
18		(c) Every health care arbitration agreement may be
19		cancelled by any signatory (1) within 120 60 days of its
20		execution or within 120 60 days of the date of the patient's
21		discharge from the hospital, whichever is later, as to an
22		agreement in relation to health care services rendered during
23		hospitalization, provided, that if executed other than at the
24		time of discharge of the patient from the hospital, the health
25		care arbitration agreement be reaffirmed at the time of the
26		discharge planning process in the same manner as provided for
27		in the execution of the original agreement; or (2) within 120
28		60 days of the date of its execution, or the last date of
29		treatment by the health care provider, whichever is later, as
30		to an agreement in relation to health care services not
31		rendered during hospitalization. Provided, that no health care
32		arbitration agreement shall be valid after 4 2 years from the
33		date of its execution. An employee of a hospital or health care

1		provider who is not a signatory to an agreement may cancel such
2		agreement as to himself until 30 days following his
3		notification that he is a party to a dispute or issue on which
4		arbitration has been demanded pursuant to such agreement. If
5		any person executing a health care arbitration agreement dies
6		before the period of cancellation as outlined above, the
7		personal representative of the decedent shall have the right to
8		cancel the health care arbitration agreement within 60 days of
9		the date of his appointment as the legal representative of the
10		decedent's estate. Provided, that if no legal representative is
11		appointed within 6 months of the death of said decedent the
12		next of kin of such decedent shall have the right to cancel the
13		health care arbitration agreement within 8 months from the date
14		of death.
15		(d) Every health care arbitration agreement shall contain
16		immediately above the signature lines, in upper case type in
17		printed letters of at least 3/16 inch height, a caption and
18		paragraphs as follows:
19		"AGREEMENT TO ARBITRATE HEALTH CARE
20		NEGLIGENCE CLAIMS
21		NOTICE TO PATIENT
22		YOU CANNOT BE REQUIRED TO SIGN THIS AGREEMENT IN ORDER TO
23		RECEIVE TREATMENT. BY SIGNING THIS AGREEMENT, YOUR RIGHT TO
24		TRIAL BY A JURY OR A JUDGE IN A COURT WILL BE BARRED AS TO
25		ANY DISPUTE RELATING TO INJURIES THAT MAY RESULT FROM
26		NEGLIGENCE DURING YOUR TREATMENT OR CARE, AND WILL BE
27		REPLACED BY AN ARBITRATION PROCEDURE.
28		THIS AGREEMENT MAY BE CANCELLED WITHIN 120 60 DAYS OF
29		SIGNING OR 120 60 DAYS AFTER YOUR HOSPITAL DISCHARGE,
30		WHICHEVER IS LATER, OR 120 60 DAYS AFTER YOUR LAST MEDICAL
31		TREATMENT IN RELATION TO HEALTH CARE SERVICES NOT RENDERED
32		DURING HOSPITALIZATION.
33		THIS AGREEMENT PROVIDES THAT ANY CLAIMS WHICH MAY ARISE OUT
34		OF YOUR HEALTH CARE WILL BE SUBMITTED TO A PANEL OF

1		ARBITRATORS, RATHER THAN TO A COURT FOR DETERMINATION. THIS
2		AGREEMENT REQUIRES ALL PARTIES SIGNING IT TO ABIDE BY THE
3		DECISION OF THE ARBITRATION PANEL."
4		(e) An an executed copy of the AGREEMENT TO ARBITRATE
5		HEALTH CARE CLAIMS and any reaffirmation of that agreement as
6		required by this Act shall be given to the patient or the
7		patient's legally authorized representative upon signing
8		during the time of the discharge planning process or at the
9		time of discharge.
10		(f) This amendatory Act of the 93rd General Assembly
11		applies to health care arbitration agreements executed on or
12		after its effective date.
13		(Source: P.A. 91-156, eff. 1-1-00.)

14		Section 330. The Code of Civil Procedure is amended by
15		reenacting and changing Sections 2-402, 2-622, and 8-2501, by
16		changing Sections 2-1704 and 8-1901, and by adding Sections
17		2-1105.01 and 2-1721 as follows:
18		(735 ILCS 5/2-402) (from Ch. 110, par. 2-402)
19		(Text of Section WITHOUT the changes made by P.A. 89-7,
20		which has been held unconstitutional)
21		Sec. 2-402. Respondents in discovery. The plaintiff in any
22		civil action may designate as respondents in discovery in his
23		or her pleading those individuals or other entities, other than
24		the named defendants, believed by the plaintiff to have
25		information essential to the determination of who should
26		properly be named as additional defendants in the action.
27		Persons or entities so named as respondents in discovery
28		shall be required to respond to discovery by the plaintiff in
29		the same manner as are defendants and may, on motion of the
30		plaintiff, be added as defendants if the evidence discloses the
31		existence of probable cause for such action.
32		A person or entity named a respondent in discovery may upon

1		his or her own motion be made a defendant in the action, in
2		which case the provisions of this Section are no longer
3		applicable to that person.
4		A copy of the complaint shall be served on each person or
5		entity named as a respondent in discovery.
6		Each respondent in discovery shall be paid expenses and
7		fees as provided for witnesses.
8		A person or entity named as a respondent in discovery in
9		any civil action may be made a defendant in the same action at
10		any time within 6 months after being named as a respondent in
11		discovery, even though the time during which an action may
12		otherwise be initiated against him or her may have expired
13		during such 6 month period. An extension from the original
14		6-month period for good cause may be granted only once for up
15		to 90 days for (i) withdrawal of plaintiff's counsel or (ii)
16		good cause. Notwithstanding the limitations in this Section,
17		the court may grant additional reasonable extensions from this
18		6-month period for a failure or refusal on the part of the
19		respondent to comply with timely filed discovery.
20		This amendatory Act of the 93rd General Assembly applies to
21		causes of action accruing on or after its effective date.
22		(Source: P.A. 86-483.)
23		(735 ILCS 5/2-622) (from Ch. 110, par. 2-622)
24		(Text of Section WITHOUT the changes made by P.A. 89-7,
25		which has been held unconstitutional)
26		Sec. 2-622. Healing art malpractice.
27		(a) In any action, whether in tort, contract or otherwise,
28		in which the plaintiff seeks damages for injuries or death by
29		reason of medical, hospital, or other healing art malpractice,
30		the plaintiff's attorney or the plaintiff, if the plaintiff is
31		proceeding pro se, shall file an affidavit, attached to the
32		original and all copies of the complaint, declaring one of the
33		following:

1		1. That the affiant has consulted and reviewed the
2		facts of the case with a health professional who the
3		affiant reasonably believes: (i) is knowledgeable in the
4		relevant issues involved in the particular action; (ii)
5		practices or has practiced within the last 5 6 years or
6		teaches or has taught within the last 5 6 years in the same
7		area of health care or medicine that is at issue in the
8		particular action; and (iii) meets the expert witness
9		standards set forth in paragraphs (a) through (d) of
10		Section 8-2501; is qualified by experience or demonstrated
11		competence in the subject of the case; that the reviewing
12		health professional has determined in a written report,
13		after a review of the medical record and other relevant
14		material involved in the particular action that there is a
15		reasonable and meritorious cause for the filing of such
16		action; and that the affiant has concluded on the basis of
17		the reviewing health professional's review and
18		consultation that there is a reasonable and meritorious
19		cause for filing of such action. A single written report
20		must be filed to cover each defendant in the action. As to
21		defendants who are individuals, the If the affidavit is
22		filed as to a defendant who is a physician licensed to
23		treat human ailments without the use of drugs or medicines
24		and without operative surgery, a dentist, a podiatrist, a
25		psychologist, or a naprapath, The written report must be
26		from a health professional licensed in the same profession,
27		with the same class of license, as the defendant. For
28		written reports affidavits filed as to all other
29		defendants, who are not individuals, the written report
30		must be from a physician licensed to practice medicine in
31		all its branches who is qualified by experience with the
32		standard of care, methods, procedures and treatments
33		relevant to the allegations at issue in the case. In either
34		event, the written report affidavit must identify the

1		profession of the reviewing health professional. A copy of
2		the written report, clearly identifying the plaintiff and
3		the reasons for the reviewing health professional's
4		determination that a reasonable and meritorious cause for
5		the filing of the action exists, must be attached to the
6		affidavit, but information which would identify the
7		reviewing health professional may be deleted from the copy
8		so attached. The report must contain the affirmations set
9		forth in items (i) through (iii) of this paragraph 1. At
10		the first Supreme Court Rule 218 case management
11		conference, the plaintiff shall present to the court the
12		original signed health professional's report, along with
13		the health professional's current license number and state
14		of licensure and curriculum vitae, for an in camera
15		inspection. The court shall verify whether the report and
16		affidavit comply with the requirements of this paragraph 1.
17		The court, in verifying whether the report and affidavit
18		comply with the requirements of this paragraph 1, shall
19		determine whether the health professional preparing the
20		report is qualified and the determination shall be either
21		in writing or transcribed. If the court finds that the
22		report, the health professional's current license
23		information or curriculum vitae, or the affidavit is
24		deficient, the court may request from the plaintiff all
25		documents it deems necessary to make its decision and shall
26		allow for a reasonable opportunity to provide any requested
27		documents and to amend that report or affidavit; provided,
28		if the statute of limitations has tolled, the judge may
29		grant only one extension not exceeding 120 days. The
30		court's verification as to whether the health professional
31		preparing the report is qualified shall be issued to all
32		parties and be made a part of the official record. The
33		original report, the health professional's current license
34		number and state of licensure and curriculum vitae, and any

1		documents requested by the court shall remain under seal
2		and part of the court record. Notwithstanding the other
3		provisions of this Section, the judge may disclose the name
4		and address of the reviewing health professional upon a
5		showing of good cause by the defendant who in good faith
6		challenges the qualifications of the health professional
7		based on information available to the defendant. If the
8		information is disclosed at the trial level, then it shall
9		be confidential and it shall not be disclosed by the
10		defendant to a third party.
11		2. That the affiant was unable to obtain a consultation
12		required by paragraph 1 because a statute of limitations
13		would impair the action and the consultation required could
14		not be obtained before the expiration of the statute of
15		limitations. If an affidavit is executed pursuant to this
16		paragraph, the affidavit certificate and written report
17		required by paragraph 1 shall be filed within 90 days after
18		the filing of the complaint. No additional 90-day
19		extensions pursuant to this paragraph shall be granted,
20		except where there has been a withdrawal of the plaintiff's
21		counsel. The defendant shall be excused from answering or
22		otherwise pleading until 30 days after being served with an
23		affidavit and a report a certificate required by paragraph
24		1.
25		3. That a request has been made by the plaintiff or his
26		attorney for examination and copying of records pursuant to
27		Part 20 of Article VIII of this Code and the party required
28		to comply under those Sections has failed to produce such
29		records within 60 days of the receipt of the request. If an
30		affidavit is executed pursuant to this paragraph, the
31		affidavit certificate and written report required by
32		paragraph 1 shall be filed within 90 days following receipt
33		of the requested records. All defendants except those whose
34		failure to comply with Part 20 of Article VIII of this Code

1		is the basis for an affidavit under this paragraph shall be
2		excused from answering or otherwise pleading until 30 days
3		after being served with the affidavit and report
4		certificate required by paragraph 1.
5		(b) Where an affidavit a certificate and written report are
6		required pursuant to this Section a separate affidavit
7		certificate and written report shall be filed as to each
8		defendant who has been named in the complaint and shall be
9		filed as to each defendant named at a later time.
10		(c) Where the plaintiff intends to rely on the doctrine of
11		"res ipsa loquitur", as defined by Section 2-1113 of this Code,
12		the affidavit certificate and written report must state that,
13		in the opinion of the reviewing health professional, negligence
14		has occurred in the course of medical treatment. The affiant
15		shall certify upon filing of the complaint that he is relying
16		on the doctrine of "res ipsa loquitur".
17		(d) When the attorney intends to rely on the doctrine of
18		failure to inform of the consequences of the procedure, the
19		attorney shall certify upon the filing of the complaint that
20		the reviewing health professional has, after reviewing the
21		medical record and other relevant materials involved in the
22		particular action, concluded that a reasonable health
23		professional would have informed the patient of the
24		consequences of the procedure.
25		(e) Allegations and denials in the affidavit, made without
26		reasonable cause and found to be untrue, shall subject the
27		party pleading them or his attorney, or both, to the payment of
28		reasonable expenses, actually incurred by the other party by
29		reason of the untrue pleading, together with reasonable
30		attorneys' fees to be summarily taxed by the court upon motion
31		made within 30 days of the judgment or dismissal. In no event
32		shall the award for attorneys' fees and expenses exceed those
33		actually paid by the moving party, including the insurer, if
34		any. In proceedings under this paragraph (e), the moving party

1		shall have the right to depose and examine any and all
2		reviewing health professionals who prepared reports used in
3		conjunction with an affidavit required by this Section.
4		(f) A reviewing health professional who in good faith
5		prepares a report used in conjunction with an affidavit
6		required by this Section shall have civil immunity from
7		liability which otherwise might result from the preparation of
8		such report.
9		(g) The failure of the plaintiff to file an affidavit and
10		report in compliance with to file a certificate required by
11		this Section shall be grounds for dismissal under Section
12		2-619.
13		(h) This Section does not apply to or affect any actions
14		pending at the time of its effective date, but applies to cases
15		filed on or after its effective date.
16		(i) This amendatory Act of 1997 does not apply to or
17		affect any actions pending at the time of its effective date,
18		but applies to cases filed on or after its effective date.
19		(j) This amendatory Act of the 93rd General Assembly
20		applies to causes of action accruing on or after its effective
21		date.
22		(Source: P.A. 86-646; 90-579, eff. 5-1-98.)
23		(735 ILCS 5/2-1105.01 new)
24		Sec. 2-1105.01. Personal assets protected in healing art
25		malpractice cases.
26		(a) In the event that a physician has at least $1,000,000
27		in professional liability insurance coverage to cover a claim
28		against him or her, and there is a verdict in excess of the
29		physician's professional liability policy limits, the
30		physician may petition the trial court or the designee of the
31		chief judge of the circuit court for asset protection in an
32		amount equal to 2 times the maximum amount payable per
33		occurrence under the physician's professional liability

1		insurance coverage and obtain such asset protection if the
2		court finds that:
3		(1) the physician's role and participation, if any, in
4		the choice to proceed to verdict and not to settle the
5		action within the physician's insurance policy limits,
6		given all of the facts and circumstances the physician knew
7		or should have known up to the time of verdict in the
8		underlying action, was reasonable; and
9		(2) after the verdict, the physician has assigned to
10		the plaintiff any and all causes of action the physician
11		has against the physician's insurer for acting in bad faith
12		or vexatiously and without reasonable cause by failing to
13		settle the action within the physician's insurance policy
14		limits.
15		(b) Under this Section, no attachment, garnishment, or
16		other form of forfeiture to satisfy any judgment or verdict
17		from any assets of the physician shall occur before the trial
18		court or the designee of the chief judge of the circuit court
19		has ruled upon the physician's petition.
20		(c) For the purpose of this Section, "asset" includes,
21		without limitation, any asset, property (real or personal),
22		interest, or other thing of value, of any kind or character
23		whatsoever that would otherwise be subject to immediate
24		execution to satisfy a judgment.
25		(d) This Section applies only to an individual physician
26		who satisfies the applicable requirements of this Section and
27		does not apply to any actual or alleged principal, apparent
28		principal, employer, master, or partner of the physician, or
29		any other party in the action.
30		(e) This Section shall not restrict, impair, or otherwise
31		affect the amount of damages that may be awarded to the
32		plaintiff or the amount of any judgment in favor of the
33		plaintiff. In any statutory or common law cause of action
34		against the physician's insurer in which it is alleged that the

1		physician's insurer acted in bad faith or vexatiously and
2		without reasonable cause by not settling the action within the
3		physician's insurance policy limits before verdict, neither a
4		physician nor a physician's assignee shall be required to
5		allege or prove that the physician made a demand to settle the
6		action before verdict or that there was a conflict between the
7		physician and the insurer over whether to settle the action
8		before verdict. Proof by the physician or the physician's
9		assignee of the remaining elements of such a statutory or
10		common law cause of action shall constitute a prima facie case
11		of the insurer acting in bad faith or vexatiously and without
12		reasonable cause.
13		(f) This amendatory Act of the 93rd General Assembly
14		applies to causes of action accruing on or after its effective
15		date.
16		(735 ILCS 5/2-1704) (from Ch. 110, par. 2-1704)
17		Sec. 2-1704. Healing art malpractice Medical Malpractice
18		Action. As used in this Code Part, "healing art medical
19		malpractice action" means any action, whether in tort, contract
20		or otherwise, in which the plaintiff seeks damages for injuries
21		or death by reason of medical, hospital, or other healing art
22		malpractice including but not limited to medical, hospital,
23		nursing, dental, or podiatric malpractice. The term "healing
24		art" shall not include care and treatment by spiritual means
25		through prayer in accord with the tenets and practices of a
26		recognized church or religious denomination.
27		This amendatory Act of the 93rd General Assembly applies to
28		causes of action accruing on or after its effective date.
29		(Source: P.A. 84-7.)
30		(735 ILCS 5/2-1721 new)
31		Sec. 2-1721. Hospitals; apparent or ostensible agency.
32		(a) A hospital shall not be liable for the conduct of a

1		non-employee member of its medical staff under any claim based
2		upon apparent or ostensible agency as a matter of law,
3		provided:
4		(1) the patient was unconscious or unaware of his or
5		her surroundings upon arrival at the hospital and the
6		patient's legal representative was not present at the time
7		to be informed that the non-employee member of its medical
8		staff was not an agent or employee of the hospital; or
9		(2) the specific member of the hospital's medical staff
10		personally informed the patient, or his or her legal
11		representative, if present, before rendering treatment
12		that he or she was not an agent or employee of the
13		hospital.
14		(b) A hospital shall not be liable for the conduct of a
15		non-employee member of its medical staff under any claim based
16		upon apparent or ostensible agency, provided:
17		(1) the following disclosure is provided to the patient
18		prior to the provision of the care in question in a
19		separate document, complete in itself and not part of any
20		other contract or instrument, which shall contain in upper
21		case type in printed letters of at least 3/16 inch height a
22		caption and statement as follows:
23		"NOTICE OF STATUS OF TREATING PHYSICIANS
24		SOME PHYSICIANS WHO WILL TREAT YOU AT THIS HOSPITAL MAY NOT
25		BE EMPLOYEES OF THE HOSPITAL AND THE HOSPITAL IS NOT
26		RESPONSIBLE FOR ANY CONDUCT OF ANY NON-EMPLOYEE PHYSICIANS
27		ON THE BASIS THAT THEY ARE HOSPITAL AGENTS OR EMPLOYEES";
28		and
29		(2) if the patient is asked to sign the disclosure, the
30		disclosure shall contain immediately above the signature
31		lines, in upper case bold type printed letters of at least
32		3/16 inch height, a statement that the patient cannot be

1		required to sign the disclosure in order to receive
2		treatment; and
3		(3) the patient was not required to sign the disclosure
4		in order to receive treatment; and
5		(4) such disclosure is provided in a reasonable and
6		meaningful manner. In determining if a disclosure
7		satisfies the requirements of this item (4), the trier of
8		fact shall consider only the following factors:
9		(A) Whether the patient knowingly and voluntarily
10		signed the disclosure.
11		(B) Whether the hospital provided an opportunity
12		for the patient to ask questions.
13		(C) Whether the patient's questions about this
14		disclosure were answered and the contents of the
15		answers.
16		(D) Whether such disclosure was provided orally
17		and in writing.
18		(E) Whether a reasonable person under the
19		circumstances should have understood the disclosure,
20		taking into account any and all representations made by
21		or on behalf of the hospital.
22		As used in this subsection (b), "patient" refers to the
23		patient or any legal representative of the patient.
24		(c) Nothing in this Section shall be construed as imposing
25		an obligation on a hospital to provide any particular health
26		care service, treatment, or procedure to a patient.
27		(d) Nothing in this Section precludes any other defense to
28		a claim of apparent or ostensible agency.
29		(e) This amendatory Act of the 93rd General Assembly
30		applies to causes of action accruing on or after its effective
31		date.
32		(735 ILCS 5/8-1901) (from Ch. 110, par. 8-1901)
33		Sec. 8-1901. Admission of liability - Effect.

1		(a) The providing of, or payment for, medical, surgical,
2		hospital, or rehabilitation services, facilities, or equipment
3		by or on behalf of any person, or the offer to provide, or pay
4		for, any one or more of the foregoing, shall not be construed
5		as an admission of any liability by such person or persons.
6		Testimony, writings, records, reports or information with
7		respect to the foregoing shall not be admissible in evidence as
8		an admission of any liability in any action of any kind in any
9		court or before any commission, administrative agency, or other
10		tribunal in this State, except at the instance of the person or
11		persons so making any such provision, payment or offer.
12		(b) Any expression of grief, apology, or explanation
13		provided by a health care provider, including, but not limited
14		to, a statement that the health care provider is "sorry" for
15		the outcome to a patient, the patient's family, or the
16		patient's legal representative about an inadequate or
17		unanticipated treatment or care outcome that is provided within
18		72 hours of when the provider knew or should have known of the
19		potential cause of such outcome shall not be admissible as
20		evidence in any action of any kind in any court or before any
21		tribunal, board, agency, or person. The disclosure of any such
22		information, whether proper, or improper, shall not waive or
23		have any effect upon its confidentiality or inadmissibility. As
24		used in this Section, a "health care provider" is any hospital,
25		nursing home or other facility, or employee or agent thereof, a
26		physician, or other licensed health care professional. Nothing
27		in this Section precludes the discovery or admissibility of any
28		other facts regarding the patient's treatment or outcome as
29		otherwise permitted by law.
30		(c) This amendatory Act of the 93rd General Assembly
31		applies to causes of action accruing on or after its effective
32		date.
33		(Source: P.A. 82-280.)

1		(735 ILCS 5/8-2501) (from Ch. 110, par. 8-2501)
2		(Text of Section WITHOUT the changes made by P.A. 89-7,
3		which has been held unconstitutional)
4		Sec. 8-2501. Expert Witness Standards. In any case in which
5		the standard of care applicable to given by a medical
6		professional profession is at issue, the court shall apply the
7		following standards to determine if a witness qualifies as an
8		expert witness and can testify on the issue of the appropriate
9		standard of care.
10		(a) Whether the witness is board certified or board
11		eligible, or has completed a residency, in the same or
12		substantially similar medical specialties as the defendant and
13		is otherwise qualified by significant experience with the
14		standard of care, methods, procedures, and treatments relevant
15		to the allegations against the defendant Relationship of the
16		medical specialties of the witness to the medical problem or
17		problems and the type of treatment administered in the case;
18		(b) Whether the witness has devoted a majority substantial
19		portion of his or her work time to the practice of medicine,
20		teaching or University based research in relation to the
21		medical care and type of treatment at issue which gave rise to
22		the medical problem of which the plaintiff complains;
23		(c) whether the witness is licensed in the same profession
24		with the same class of license as the defendant if the
25		defendant is an individual; and
26		(d) whether, in the case against a nonspecialist, the
27		witness can demonstrate a sufficient familiarity with the
28		standard of care practiced in this State.
29		An expert shall provide evidence of active practice,
30		teaching, or engaging in university-based research. If
31		retired, an expert must provide evidence of attendance and
32		completion of continuing education courses for 3 years previous
33		to giving testimony. An expert who has not actively practiced,
34		taught, or been engaged in university-based research, or any

1		combination thereof, during the preceding 5 years may not be
2		qualified as an expert witness.
3		This amendatory Act of the 93rd General Assembly applies to
4		causes of action accruing on or after its effective date.
5		(Source: P.A. 84-7.)

6		Section 340. The Good Samaritan Act is amended by changing
7		Section 30 as follows:
8		(745 ILCS 49/30)
9		Sec. 30. Free medical clinic; exemption from civil
10		liability for services performed without compensation.
11		(a) A person licensed under the Medical Practice Act of
12		1987, a person licensed to practice the treatment of human
13		ailments in any other state or territory of the United States,
14		or a health care professional, including but not limited to an
15		advanced practice nurse, retired physician, physician
16		assistant, nurse, pharmacist, physical therapist, podiatrist,
17		or social worker licensed in this State or any other state or
18		territory of the United States, who, in good faith, provides
19		medical treatment, diagnosis, or advice as a part of the
20		services of an established free medical clinic providing care,
21		including but not limited to home visits, without charge to
22		medically indigent patients which is limited to care that does
23		not require the services of a licensed hospital or ambulatory
24		surgical treatment center and who receives no fee or
25		compensation from that source shall not be liable for civil
26		damages as a result of his or her acts or omissions in
27		providing that medical treatment, except for willful or wanton
28		misconduct.
29		(b) For purposes of this Section, a "free medical clinic"
30		is an organized community based program providing medical care
31		without charge to individuals unable to pay for it, at which
32		the care provided does not include the use of general

1		anesthesia or require an overnight stay in a health-care
2		facility.
3		(c) The provisions of subsection (a) of this Section do not
4		apply to a particular case unless the free medical clinic has
5		posted in a conspicuous place on its premises an explanation of
6		the exemption from civil liability provided herein.
7		(d) The immunity from civil damages provided under
8		subsection (a) also applies to physicians, retired physicians,
9		hospitals, and other health care providers that provide further
10		medical treatment, diagnosis, or advice, including but not
11		limited to hospitalization, office visits, and home visits, to
12		a patient upon referral from an established free medical clinic
13		without fee or compensation.
14		(d-5) A free medical clinic may receive reimbursement from
15		the Illinois Department of Public Aid, provided any
16		reimbursements shall be used only to pay overhead expenses of
17		operating the free medical clinic and may not be used, in whole
18		or in part, to provide a fee or other compensation to any
19		person licensed under the Medical Practice Act of 1987 or any
20		other health care professional who is receiving an exemption
21		under this Section. Any health care professional receiving an
22		exemption under this Section may not receive any fee or other
23		compensation in connection with any services provided to, or
24		any ownership interest in, the clinic. Medical care shall not
25		include an overnight stay in a health care facility.
26		(e) Nothing in this Section prohibits a free medical clinic
27		from accepting voluntary contributions for medical services
28		provided to a patient who has acknowledged his or her ability
29		and willingness to pay a portion of the value of the medical
30		services provided.
31		(f) Any voluntary contribution collected for providing
32		care at a free medical clinic shall be used only to pay
33		overhead expenses of operating the clinic. No portion of any
34		moneys collected shall be used to provide a fee or other

1		compensation to any person licensed under Medical Practice Act
2		of 1987.
3		(g) This amendatory Act of the 93rd General Assembly
4		applies to causes of action accruing on or after its effective
5		date.
6		(Source: P.A. 89-607, eff. 1-1-97; 90-742, eff. 8-13-98.)

ARTICLE 4. SORRY WORKS! PILOT PROGRAM ACT

8		Section 401. Short title. This Article 4 may be cited as
9		the Sorry Works! Pilot Program Act, and references in this
10		Article to "this Act" mean this Article.

DocumentFragmentPlaceHolder1

21		Section 410. Establishment of committee.
22		(a) A committee is established to develop, oversee, and
23		implement the Sorry Works! pilot program. The committee shall
24		have 10 members, each of whom shall be a voting member. Six
25		members of the committee shall constitute a quorum. The
26		committee shall be comprised as follows:
27		(1) The President of the Senate, the Minority Leader of
28		the Senate, the Speaker of the House of Representatives,
29		and the Minority Leader of the House of Representatives
30		shall each appoint 2 members.
31		(2) The Director of Professional Regulation or his or
32		her designee.
33		(3) The Director of Insurance or his or her designee.

1		(b) The committee shall establish criteria for the program,
2		including but not limited to: selection of hospitals,
3		physicians, and insurers to participate in the program; and
4		creation of a subcommittee to review cases from hospitals and
5		determine whether hospitals, physicians, and insurers are
6		entitled to compensation under the program.
7		(c) The committee shall communicate with hospitals,
8		physicians, and insurers that are interested in participating
9		in the program. The committee shall make final decisions as to
10		which applicants are accepted for the program.
11		(d) The committee shall report to the Governor and the
12		General Assembly annually.
13		(e) The committee shall publish data regarding the program.
14		(f) Committee members shall receive no compensation for the
15		performance of their duties as members, but each member shall
16		be paid necessary expenses while engaged in the performance of
17		those duties.

18		Section 415. Termination of program.
19		(a) The program may be terminated at any time if the
20		committee, by a vote of two-thirds of its members, votes to
21		terminate the program.
22		(b) If the program is not terminated under subsection (a),
23		the program shall terminate after its second year of operation.

24		Section 495. The State Finance Act is amended by adding
25		Section 5.626 as follows:
26		(30 ILCS 105/5.626 new)
27		Sec. 5.626. The Sorry Works! Fund.

ARTICLE 9. MISCELLANEOUS

29

Section 995. Severability. The provisions of this Act are

1		severable under Section 1.31 of the Statute on Statutes.

Section 999. Effective date. This Act takes effect upon becoming law.".