99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1512

 

Introduced 2/6/2015, by Rep. Reginald Phillips

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3960/3  from Ch. 111 1/2, par. 1153
20 ILCS 3960/5.4
20 ILCS 3960/12  from Ch. 111 1/2, par. 1162
20 ILCS 3960/13  from Ch. 111 1/2, par. 1163
20 ILCS 3960/14.1
210 ILCS 45/3-102.2
210 ILCS 45/3-103  from Ch. 111 1/2, par. 4153-103

    Amends the Health Facilities Planning Act. Removes nursing homes from the requirements of the Act and the authority of the Health Facilities and Services Review Board. Makes conforming changes in the Nursing Home Care Act.


LRB099 06858 JLK 26936 b

 

 

A BILL FOR

 

HB1512LRB099 06858 JLK 26936 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Health Facilities Planning Act is
5amended by changing Sections 3, 5.4, 12, 13, and 14.1 as
6follows:
 
7    (20 ILCS 3960/3)  (from Ch. 111 1/2, par. 1153)
8    (Section scheduled to be repealed on December 31, 2019)
9    Sec. 3. Definitions. As used in this Act:
10    "Health care facilities" means and includes the following
11facilities, organizations, and related persons:
12        (1) An ambulatory surgical treatment center required
13    to be licensed pursuant to the Ambulatory Surgical
14    Treatment Center Act.
15        (2) An institution, place, building, or agency
16    required to be licensed pursuant to the Hospital Licensing
17    Act.
18        (3) (Blank). Skilled and intermediate long term care
19    facilities licensed under the Nursing Home Care Act.
20            (A) If a demonstration project under the Nursing
21        Home Care Act applies for a certificate of need to
22        convert to a nursing facility, it shall meet the
23        licensure and certificate of need requirements in

 

 

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1        effect as of the date of application.
2            (B) Except as provided in item (A) of this
3        subsection, this Act does not apply to facilities
4        granted waivers under Section 3-102.2 of the Nursing
5        Home Care Act.
6        (3.5) Skilled and intermediate care facilities
7    licensed under the ID/DD Community Care Act. (A) No permit
8    or exemption is required for a facility licensed under the
9    ID/DD Community Care Act prior to the reduction of the
10    number of beds at a facility. If there is a total reduction
11    of beds at a facility licensed under the ID/DD Community
12    Care Act, this is a discontinuation or closure of the
13    facility. If a facility licensed under the ID/DD Community
14    Care Act reduces the number of beds or discontinues the
15    facility, that facility must notify the Board as provided
16    in Section 14.1 of this Act.
17        (3.7) Facilities licensed under the Specialized Mental
18    Health Rehabilitation Act of 2013.
19        (4) Hospitals, nursing homes, ambulatory surgical
20    treatment centers, or kidney disease treatment centers
21    maintained by the State or any department or agency
22    thereof.
23        (5) Kidney disease treatment centers, including a
24    free-standing hemodialysis unit required to be licensed
25    under the End Stage Renal Disease Facility Act.
26            (A) This Act does not apply to a dialysis facility

 

 

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1        that provides only dialysis training, support, and
2        related services to individuals with end stage renal
3        disease who have elected to receive home dialysis.
4            (B) This Act does not apply to a dialysis unit
5        located in a licensed nursing home that offers or
6        provides dialysis-related services to residents with
7        end stage renal disease who have elected to receive
8        home dialysis within the nursing home.
9            (C) The Board, however, may require dialysis
10        facilities and licensed nursing homes under item items
11        (A) and (B) of this subsection to report statistical
12        information on a quarterly basis to the Board to be
13        used by the Board to conduct analyses on the need for
14        proposed kidney disease treatment centers.
15        (6) An institution, place, building, or room used for
16    the performance of outpatient surgical procedures that is
17    leased, owned, or operated by or on behalf of an
18    out-of-state facility.
19        (7) An institution, place, building, or room used for
20    provision of a health care category of service, including,
21    but not limited to, cardiac catheterization and open heart
22    surgery.
23        (8) An institution, place, building, or room housing
24    major medical equipment used in the direct clinical
25    diagnosis or treatment of patients, and whose project cost
26    is in excess of the capital expenditure minimum.

 

 

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1    "Health care facilities" does not include the following
2entities or facility transactions:
3        (1) Federally-owned facilities.
4        (2) Facilities used solely for healing by prayer or
5    spiritual means.
6        (3) An existing facility located on any campus facility
7    as defined in Section 5-5.8b of the Illinois Public Aid
8    Code, provided that the campus facility encompasses 30 or
9    more contiguous acres and that the new or renovated
10    facility is intended for use by a licensed residential
11    facility.
12        (4) Facilities licensed under the Supportive
13    Residences Licensing Act or the Assisted Living and Shared
14    Housing Act.
15        (5) Facilities designated as supportive living
16    facilities that are in good standing with the program
17    established under Section 5-5.01a of the Illinois Public
18    Aid Code.
19        (6) Facilities established and operating under the
20    Alternative Health Care Delivery Act as a children's
21    community-based health care center children's respite care
22    center alternative health care model demonstration program
23    or as an Alzheimer's Disease Management Center alternative
24    health care model demonstration program.
25        (7) The closure of an entity or a portion of an entity
26    licensed under the Nursing Home Care Act, the Specialized

 

 

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1    Mental Health Rehabilitation Act of 2013 , or the ID/DD
2    Community Care Act, with the exception of facilities
3    operated by a county or Illinois Veterans Homes, that elect
4    to convert, in whole or in part, to an assisted living or
5    shared housing establishment licensed under the Assisted
6    Living and Shared Housing Act and with the exception of a
7    facility licensed under the Specialized Mental Health
8    Rehabilitation Act of 2013 in connection with a proposal to
9    close a facility and re-establish the facility in another
10    location.
11        (8) Any change of ownership of a health care healthcare
12    facility that is licensed under the Nursing Home Care Act,
13    the Specialized Mental Health Rehabilitation Act of 2013 ,
14    or the ID/DD Community Care Act, with the exception of
15    facilities operated by a county or Illinois Veterans Homes.
16    Changes of ownership of facilities licensed under the
17    Nursing Home Care Act must meet the requirements set forth
18    in Sections 3-101 through 3-119 of the Nursing Home Care
19    Act. children's community-based health care center of 2013
20    and with the exception of a facility licensed under the
21    Specialized Mental Health Rehabilitation Act of 2013 in
22    connection with a proposal to close a facility and
23    re-establish the facility in another location of 2013
24    With the exception of those health care facilities
25specifically included in this Section, nothing in this Act
26shall be intended to include facilities operated as a part of

 

 

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1the practice of a physician or other licensed health care
2professional, whether practicing in his individual capacity or
3within the legal structure of any partnership, medical or
4professional corporation, or unincorporated medical or
5professional group. Further, this Act shall not apply to
6physicians or other licensed health care professional's
7practices where such practices are carried out in a portion of
8a health care facility under contract with such health care
9facility by a physician or by other licensed health care
10professionals, whether practicing in his individual capacity
11or within the legal structure of any partnership, medical or
12professional corporation, or unincorporated medical or
13professional groups, unless the entity constructs, modifies,
14or establishes a health care facility as specifically defined
15in this Section. This Act shall apply to construction or
16modification and to establishment by such health care facility
17of such contracted portion which is subject to facility
18licensing requirements, irrespective of the party responsible
19for such action or attendant financial obligation.
20    "Person" means any one or more natural persons, legal
21entities, governmental bodies other than federal, or any
22combination thereof.
23    "Consumer" means any person other than a person (a) whose
24major occupation currently involves or whose official capacity
25within the last 12 months has involved the providing,
26administering or financing of any type of health care facility,

 

 

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1(b) who is engaged in health research or the teaching of
2health, (c) who has a material financial interest in any
3activity which involves the providing, administering or
4financing of any type of health care facility, or (d) who is or
5ever has been a member of the immediate family of the person
6defined by (a), (b), or (c).
7    "State Board" or "Board" means the Health Facilities and
8Services Review Board.
9    "Construction or modification" means the establishment,
10erection, building, alteration, reconstruction, modernization,
11improvement, extension, discontinuation, change of ownership,
12of or by a health care facility, or the purchase or acquisition
13by or through a health care facility of equipment or service
14for diagnostic or therapeutic purposes or for facility
15administration or operation, or any capital expenditure made by
16or on behalf of a health care facility which exceeds the
17capital expenditure minimum; however, any capital expenditure
18made by or on behalf of a health care facility for (i) the
19construction or modification of a facility licensed under the
20Assisted Living and Shared Housing Act or (ii) a conversion
21project undertaken in accordance with Section 30 of the Older
22Adult Services Act shall be excluded from any obligations under
23this Act.
24    "Establish" means the construction of a health care
25facility or the replacement of an existing facility on another
26site or the initiation of a category of service.

 

 

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1    "Major medical equipment" means medical equipment which is
2used for the provision of medical and other health services and
3which costs in excess of the capital expenditure minimum,
4except that such term does not include medical equipment
5acquired by or on behalf of a clinical laboratory to provide
6clinical laboratory services if the clinical laboratory is
7independent of a physician's office and a hospital and it has
8been determined under Title XVIII of the Social Security Act to
9meet the requirements of paragraphs (10) and (11) of Section
101861(s) of such Act. In determining whether medical equipment
11has a value in excess of the capital expenditure minimum, the
12value of studies, surveys, designs, plans, working drawings,
13specifications, and other activities essential to the
14acquisition of such equipment shall be included.
15    "Capital Expenditure" means an expenditure: (A) made by or
16on behalf of a health care facility (as such a facility is
17defined in this Act); and (B) which under generally accepted
18accounting principles is not properly chargeable as an expense
19of operation and maintenance, or is made to obtain by lease or
20comparable arrangement any facility or part thereof or any
21equipment for a facility or part; and which exceeds the capital
22expenditure minimum.
23    For the purpose of this paragraph, the cost of any studies,
24surveys, designs, plans, working drawings, specifications, and
25other activities essential to the acquisition, improvement,
26expansion, or replacement of any plant or equipment with

 

 

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1respect to which an expenditure is made shall be included in
2determining if such expenditure exceeds the capital
3expenditures minimum. Unless otherwise interdependent, or
4submitted as one project by the applicant, components of
5construction or modification undertaken by means of a single
6construction contract or financed through the issuance of a
7single debt instrument shall not be grouped together as one
8project. Donations of equipment or facilities to a health care
9facility which if acquired directly by such facility would be
10subject to review under this Act shall be considered capital
11expenditures, and a transfer of equipment or facilities for
12less than fair market value shall be considered a capital
13expenditure for purposes of this Act if a transfer of the
14equipment or facilities at fair market value would be subject
15to review.
16    "Capital expenditure minimum" means $11,500,000 for
17projects by hospital applicants, $6,500,000 for applicants for
18projects related to skilled and intermediate care long-term
19care facilities licensed under the Nursing Home Care Act, and
20$3,000,000 for projects by all other applicants, which shall be
21annually adjusted to reflect the increase in construction costs
22due to inflation, for major medical equipment and for all other
23capital expenditures.
24    "Non-clinical service area" means an area (i) for the
25benefit of the patients, visitors, staff, or employees of a
26health care facility and (ii) not directly related to the

 

 

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1diagnosis, treatment, or rehabilitation of persons receiving
2services from the health care facility. "Non-clinical service
3areas" include, but are not limited to, chapels; gift shops;
4news stands; computer systems; tunnels, walkways, and
5elevators; telephone systems; projects to comply with life
6safety codes; educational facilities; student housing;
7patient, employee, staff, and visitor dining areas;
8administration and volunteer offices; modernization of
9structural components (such as roof replacement and masonry
10work); boiler repair or replacement; vehicle maintenance and
11storage facilities; parking facilities; mechanical systems for
12heating, ventilation, and air conditioning; loading docks; and
13repair or replacement of carpeting, tile, wall coverings,
14window coverings or treatments, or furniture. Solely for the
15purpose of this definition, "non-clinical service area" does
16not include health and fitness centers.
17    "Areawide" means a major area of the State delineated on a
18geographic, demographic, and functional basis for health
19planning and for health service and having within it one or
20more local areas for health planning and health service. The
21term "region", as contrasted with the term "subregion", and the
22word "area" may be used synonymously with the term "areawide".
23    "Local" means a subarea of a delineated major area that on
24a geographic, demographic, and functional basis may be
25considered to be part of such major area. The term "subregion"
26may be used synonymously with the term "local".

 

 

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1    "Physician" means a person licensed to practice in
2accordance with the Medical Practice Act of 1987, as amended.
3    "Licensed health care professional" means a person
4licensed to practice a health profession under pertinent
5licensing statutes of the State of Illinois.
6    "Director" means the Director of the Illinois Department of
7Public Health.
8    "Agency" means the Illinois Department of Public Health.
9    "Alternative health care model" means a facility or program
10authorized under the Alternative Health Care Delivery Act.
11    "Out-of-state facility" means a person that is both (i)
12licensed as a hospital or as an ambulatory surgery center under
13the laws of another state or that qualifies as a hospital or an
14ambulatory surgery center under regulations adopted pursuant
15to the Social Security Act and (ii) not licensed under the
16Ambulatory Surgical Treatment Center Act, the Hospital
17Licensing Act, or the Nursing Home Care Act. Affiliates of
18out-of-state facilities shall be considered out-of-state
19facilities. Affiliates of Illinois licensed health care
20facilities 100% owned by an Illinois licensed health care
21facility, its parent, or Illinois physicians licensed to
22practice medicine in all its branches shall not be considered
23out-of-state facilities. Nothing in this definition shall be
24construed to include an office or any part of an office of a
25physician licensed to practice medicine in all its branches in
26Illinois that is not required to be licensed under the

 

 

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1Ambulatory Surgical Treatment Center Act.
2    "Change of ownership of a health care facility" means a
3change in the person who has ownership or control of a health
4care facility's physical plant and capital assets. A change in
5ownership is indicated by the following transactions: sale,
6transfer, acquisition, lease, change of sponsorship, or other
7means of transferring control.
8    "Related person" means any person that: (i) is at least 50%
9owned, directly or indirectly, by either the health care
10facility or a person owning, directly or indirectly, at least
1150% of the health care facility; or (ii) owns, directly or
12indirectly, at least 50% of the health care facility.
13    "Charity care" means care provided by a health care
14facility for which the provider does not expect to receive
15payment from the patient or a third-party payer.
16    "Freestanding emergency center" means a facility subject
17to licensure under Section 32.5 of the Emergency Medical
18Services (EMS) Systems Act.
19    "Category of service" means a grouping by generic class of
20various types or levels of support functions, equipment, care,
21or treatment provided to patients or residents, including, but
22not limited to, classes such as medical-surgical, pediatrics,
23or cardiac catheterization. A category of service may include
24subcategories or levels of care that identify a particular
25degree or type of care within the category of service. Nothing
26in this definition shall be construed to include the practice

 

 

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1of a physician or other licensed health care professional while
2functioning in an office providing for the care, diagnosis, or
3treatment of patients. A category of service that is subject to
4the Board's jurisdiction must be designated in rules adopted by
5the Board.
6    "State Board Staff Report" means the document that sets
7forth the review and findings of the State Board staff, as
8prescribed by the State Board, regarding applications subject
9to Board jurisdiction.
10(Source: P.A. 97-38, eff. 6-28-11; 97-277, eff. 1-1-12; 97-813,
11eff. 7-13-12; 97-980, eff. 8-17-12; 98-414, eff. 1-1-14;
1298-629, eff. 1-1-15; 98-651, eff. 6-16-14; 98-1086, eff.
138-26-14; revised 10-22-14.)
 
14    (20 ILCS 3960/5.4)
15    (Section scheduled to be repealed on December 31, 2019)
16    Sec. 5.4. Safety Net Impact Statement.
17    (a) General review criteria shall include a requirement
18that all health care facilities, with the exception of skilled
19and intermediate long-term care facilities licensed under the
20Nursing Home Care Act, provide a Safety Net Impact Statement,
21which shall be filed with an application for a substantive
22project or when the application proposes to discontinue a
23category of service.
24    (b) For the purposes of this Section, "safety net services"
25are services provided by health care providers or organizations

 

 

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1that deliver health care services to persons with barriers to
2mainstream health care due to lack of insurance, inability to
3pay, special needs, ethnic or cultural characteristics, or
4geographic isolation. Safety net service providers include,
5but are not limited to, hospitals and private practice
6physicians that provide charity care, school-based health
7centers, migrant health clinics, rural health clinics,
8federally qualified health centers, community health centers,
9public health departments, and community mental health
10centers.
11    (c) As developed by the applicant, a Safety Net Impact
12Statement shall describe all of the following:
13        (1) The project's material impact, if any, on essential
14    safety net services in the community, to the extent that it
15    is feasible for an applicant to have such knowledge.
16        (2) The project's impact on the ability of another
17    provider or health care system to cross-subsidize safety
18    net services, if reasonably known to the applicant.
19        (3) How the discontinuation of a facility or service
20    might impact the remaining safety net providers in a given
21    community, if reasonably known by the applicant.
22    (d) Safety Net Impact Statements shall also include all of
23the following:
24        (1) For the 3 fiscal years prior to the application, a
25    certification describing the amount of charity care
26    provided by the applicant. The amount calculated by

 

 

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1    hospital applicants shall be in accordance with the
2    reporting requirements for charity care reporting in the
3    Illinois Community Benefits Act. Non-hospital applicants
4    shall report charity care, at cost, in accordance with an
5    appropriate methodology specified by the Board.
6        (2) For the 3 fiscal years prior to the application, a
7    certification of the amount of care provided to Medicaid
8    patients. Hospital and non-hospital applicants shall
9    provide Medicaid information in a manner consistent with
10    the information reported each year to the State Board
11    regarding "Inpatients and Outpatients Served by Payor
12    Source" and "Inpatient and Outpatient Net Revenue by Payor
13    Source" as required by the Board under Section 13 of this
14    Act and published in the Annual Hospital Profile.
15        (3) Any information the applicant believes is directly
16    relevant to safety net services, including information
17    regarding teaching, research, and any other service.
18    (e) The Board staff shall publish a notice, that an
19application accompanied by a Safety Net Impact Statement has
20been filed, in a newspaper having general circulation within
21the area affected by the application. If no newspaper has a
22general circulation within the county, the Board shall post the
23notice in 5 conspicuous places within the proposed area.
24    (f) Any person, community organization, provider, or
25health system or other entity wishing to comment upon or oppose
26the application may file a Safety Net Impact Statement Response

 

 

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1with the Board, which shall provide additional information
2concerning a project's impact on safety net services in the
3community.
4    (g) Applicants shall be provided an opportunity to submit a
5reply to any Safety Net Impact Statement Response.
6    (h) The Board staff report shall include a statement as to
7whether a Safety Net Impact Statement was filed by the
8applicant and whether it included information on charity care,
9the amount of care provided to Medicaid patients, and
10information on teaching, research, or any other service
11provided by the applicant directly relevant to safety net
12services. The report shall also indicate the names of the
13parties submitting responses and the number of responses and
14replies, if any, that were filed.
15(Source: P.A. 98-1086, eff. 8-26-14.)
 
16    (20 ILCS 3960/12)  (from Ch. 111 1/2, par. 1162)
17    (Section scheduled to be repealed on December 31, 2019)
18    Sec. 12. Powers and duties of State Board. For purposes of
19this Act, the State Board shall exercise the following powers
20and duties:
21    (1) Prescribe rules, regulations, standards, criteria,
22procedures or reviews which may vary according to the purpose
23for which a particular review is being conducted or the type of
24project reviewed and which are required to carry out the
25provisions and purposes of this Act. Policies and procedures of

 

 

HB1512- 17 -LRB099 06858 JLK 26936 b

1the State Board shall take into consideration the priorities
2and needs of medically underserved areas and other health care
3services identified through the comprehensive health planning
4process, giving special consideration to the impact of projects
5on access to safety net services.
6    (2) Adopt procedures for public notice and hearing on all
7proposed rules, regulations, standards, criteria, and plans
8required to carry out the provisions of this Act.
9    (3) (Blank).
10    (4) Develop criteria and standards for health care
11facilities planning, conduct statewide inventories of health
12care facilities, maintain an updated inventory on the Board's
13web site reflecting the most recent bed and service changes and
14updated need determinations when new census data become
15available or new need formulae are adopted, and develop health
16care facility plans which shall be utilized in the review of
17applications for permit under this Act. Such health facility
18plans shall be coordinated by the Board with pertinent State
19Plans. Inventories pursuant to this Section of skilled or
20intermediate care facilities licensed under the Nursing Home
21Care Act, skilled or intermediate care facilities licensed
22under the ID/DD Community Care Act or , facilities licensed
23under the Specialized Mental Health Rehabilitation Act, or
24nursing homes licensed under the Hospital Licensing Act shall
25be conducted on an annual basis no later than July 1 of each
26year and shall include among the information requested a list

 

 

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1of all services provided by a facility to its residents and to
2the community at large and differentiate between active and
3inactive beds.
4    In developing health care facility plans, the State Board
5shall consider, but shall not be limited to, the following:
6        (a) The size, composition and growth of the population
7    of the area to be served;
8        (b) The number of existing and planned facilities
9    offering similar programs;
10        (c) The extent of utilization of existing facilities;
11        (d) The availability of facilities which may serve as
12    alternatives or substitutes;
13        (e) The availability of personnel necessary to the
14    operation of the facility;
15        (f) Multi-institutional planning and the establishment
16    of multi-institutional systems where feasible;
17        (g) The financial and economic feasibility of proposed
18    construction or modification; and
19        (h) In the case of health care facilities established
20    by a religious body or denomination, the needs of the
21    members of such religious body or denomination may be
22    considered to be public need.
23    The health care facility plans which are developed and
24adopted in accordance with this Section shall form the basis
25for the plan of the State to deal most effectively with
26statewide health needs in regard to health care facilities.

 

 

HB1512- 19 -LRB099 06858 JLK 26936 b

1    (5) Coordinate with the Center for Comprehensive Health
2Planning and other state agencies having responsibilities
3affecting health care facilities, including those of licensure
4and cost reporting. Beginning no later than January 1, 2013,
5the Department of Public Health shall produce a written annual
6report to the Governor and the General Assembly regarding the
7development of the Center for Comprehensive Health Planning.
8The Chairman of the State Board and the State Board
9Administrator shall also receive a copy of the annual report.
10    (6) Solicit, accept, hold and administer on behalf of the
11State any grants or bequests of money, securities or property
12for use by the State Board or Center for Comprehensive Health
13Planning in the administration of this Act; and enter into
14contracts consistent with the appropriations for purposes
15enumerated in this Act.
16    (7) The State Board shall prescribe procedures for review,
17standards, and criteria which shall be utilized to make
18periodic reviews and determinations of the appropriateness of
19any existing health services being rendered by health care
20facilities subject to the Act. The State Board shall consider
21recommendations of the Board in making its determinations.
22    (8) Prescribe, in consultation with the Center for
23Comprehensive Health Planning, rules, regulations, standards,
24and criteria for the conduct of an expeditious review of
25applications for permits for projects of construction or
26modification of a health care facility, which projects are

 

 

HB1512- 20 -LRB099 06858 JLK 26936 b

1classified as emergency, substantive, or non-substantive in
2nature.
3    Six months after June 30, 2009 (the effective date of
4Public Act 96-31), substantive projects shall include no more
5than the following:
6        (a) Projects to construct (1) a new or replacement
7    facility located on a new site or (2) a replacement
8    facility located on the same site as the original facility
9    and the cost of the replacement facility exceeds the
10    capital expenditure minimum, which shall be reviewed by the
11    Board within 120 days;
12        (b) Projects proposing a (1) new service within an
13    existing healthcare facility or (2) discontinuation of a
14    service within an existing healthcare facility, which
15    shall be reviewed by the Board within 60 days; or
16        (c) Projects proposing a change in the bed capacity of
17    a health care facility by an increase in the total number
18    of beds or by a redistribution of beds among various
19    categories of service or by a relocation of beds from one
20    physical facility or site to another by more than 20 beds
21    or more than 10% of total bed capacity, as defined by the
22    State Board, whichever is less, over a 2-year period.
23    The Chairman may approve applications for exemption that
24meet the criteria set forth in rules or refer them to the full
25Board. The Chairman may approve any unopposed application that
26meets all of the review criteria or refer them to the full

 

 

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1Board.
2    Such rules shall not abridge the right of the Center for
3Comprehensive Health Planning to make recommendations on the
4classification and approval of projects, nor shall such rules
5prevent the conduct of a public hearing upon the timely request
6of an interested party. Such reviews shall not exceed 60 days
7from the date the application is declared to be complete.
8    (9) Prescribe rules, regulations, standards, and criteria
9pertaining to the granting of permits for construction and
10modifications which are emergent in nature and must be
11undertaken immediately to prevent or correct structural
12deficiencies or hazardous conditions that may harm or injure
13persons using the facility, as defined in the rules and
14regulations of the State Board. This procedure is exempt from
15public hearing requirements of this Act.
16    (10) Prescribe rules, regulations, standards and criteria
17for the conduct of an expeditious review, not exceeding 60
18days, of applications for permits for projects to construct or
19modify health care facilities which are needed for the care and
20treatment of persons who have acquired immunodeficiency
21syndrome (AIDS) or related conditions.
22    (11) Issue written decisions upon request of the applicant
23or an adversely affected party to the Board. Requests for a
24written decision shall be made within 15 days after the Board
25meeting in which a final decision has been made. A "final
26decision" for purposes of this Act is the decision to approve

 

 

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1or deny an application, or take other actions permitted under
2this Act, at the time and date of the meeting that such action
3is scheduled by the Board. State Board members shall provide
4their rationale when voting on an item before the State Board
5at a State Board meeting in order to comply with subsection (b)
6of Section 3-108 of the Administrative Review Law of the Code
7of Civil Procedure. The transcript of the State Board meeting
8shall be incorporated into the Board's final decision. The
9staff of the Board shall prepare a written copy of the final
10decision and the Board shall approve a final copy for inclusion
11in the formal record. The Board shall consider, for approval,
12the written draft of the final decision no later than the next
13scheduled Board meeting. The written decision shall identify
14the applicable criteria and factors listed in this Act and the
15Board's regulations that were taken into consideration by the
16Board when coming to a final decision. If the Board denies or
17fails to approve an application for permit or exemption, the
18Board shall include in the final decision a detailed
19explanation as to why the application was denied and identify
20what specific criteria or standards the applicant did not
21fulfill.
22    (12) Require at least one of its members to participate in
23any public hearing, after the appointment of a majority of the
24members to the Board.
25    (13) Provide a mechanism for the public to comment on, and
26request changes to, draft rules and standards.

 

 

HB1512- 23 -LRB099 06858 JLK 26936 b

1    (14) Implement public information campaigns to regularly
2inform the general public about the opportunity for public
3hearings and public hearing procedures.
4    (15) (Blank). Establish a separate set of rules and
5guidelines for long-term care that recognizes that nursing
6homes are a different business line and service model from
7other regulated facilities. An open and transparent process
8shall be developed that considers the following: how skilled
9nursing fits in the continuum of care with other care
10providers, modernization of nursing homes, establishment of
11more private rooms, development of alternative services, and
12current trends in long-term care services. The Chairman of the
13Board shall appoint a permanent Health Services Review Board
14Long-term Care Facility Advisory Subcommittee that shall
15develop and recommend to the Board the rules to be established
16by the Board under this paragraph (15). The Subcommittee shall
17also provide continuous review and commentary on policies and
18procedures relative to long-term care and the review of related
19projects. In consultation with other experts from the health
20field of long-term care, the Board and the Subcommittee shall
21study new approaches to the current bed need formula and Health
22Service Area boundaries to encourage flexibility and
23innovation in design models reflective of the changing
24long-term care marketplace and consumer preferences. The
25Subcommittee shall evaluate, and make recommendations to the
26State Board regarding, the buying, selling, and exchange of

 

 

HB1512- 24 -LRB099 06858 JLK 26936 b

1beds between long-term care facilities within a specified
2geographic area or drive time. The Board shall file the
3proposed related administrative rules for the separate rules
4and guidelines for long-term care required by this paragraph
5(15) by no later than September 30, 2011. The Subcommittee
6shall be provided a reasonable and timely opportunity to review
7and comment on any review, revision, or updating of the
8criteria, standards, procedures, and rules used to evaluate
9project applications as provided under Section 12.3 of this
10Act.
11    (16) Prescribe and provide forms pertaining to the State
12Board Staff Report. A State Board Staff Report shall pertain to
13applications that include, but are not limited to, applications
14for permit or exemption, applications for permit renewal,
15applications for extension of the obligation period,
16applications requesting a declaratory ruling, or applications
17under the Health Care Worker Self-Referral Self Referral Act.
18State Board Staff Reports shall compare applications to the
19relevant review criteria under the Board's rules.
20    (17) (16) Establish a separate set of rules and guidelines
21for facilities licensed under the Specialized Mental Health
22Rehabilitation Act of 2013. An application for the
23re-establishment of a facility in connection with the
24relocation of the facility shall not be granted unless the
25applicant has a contractual relationship with at least one
26hospital to provide emergency and inpatient mental health

 

 

HB1512- 25 -LRB099 06858 JLK 26936 b

1services required by facility consumers, and at least one
2community mental health agency to provide oversight and
3assistance to facility consumers while living in the facility,
4and appropriate services, including case management, to assist
5them to prepare for discharge and reside stably in the
6community thereafter. No new facilities licensed under the
7Specialized Mental Health Rehabilitation Act of 2013 shall be
8established after June 16, 2014 (the effective date of Public
9Act 98-651) this amendatory Act of the 98th General Assembly
10except in connection with the relocation of an existing
11facility to a new location. An application for a new location
12shall not be approved unless there are adequate community
13services accessible to the consumers within a reasonable
14distance, or by use of public transportation, so as to
15facilitate the goal of achieving maximum individual self-care
16and independence. At no time shall the total number of
17authorized beds under this Act in facilities licensed under the
18Specialized Mental Health Rehabilitation Act of 2013 exceed the
19number of authorized beds on June 16, 2014 (the effective date
20of Public Act 98-651) this amendatory Act of the 98th General
21Assembly.
22(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
23eff. 7-13-12; 97-1045, eff. 8-21-13; 97-1115, eff. 8-27-12;
2498-414, eff. 1-1-14; 98-463, eff. 8-16-13; 98-651, eff.
256-16-14; 98-1086, eff. 8-26-14; revised 10-1-14.)
 

 

 

HB1512- 26 -LRB099 06858 JLK 26936 b

1    (20 ILCS 3960/13)  (from Ch. 111 1/2, par. 1163)
2    (Section scheduled to be repealed on December 31, 2019)
3    Sec. 13. Investigation of applications for permits and
4certificates of recognition. The State Board shall make or
5cause to be made such investigations as it deems necessary in
6connection with an application for a permit or an application
7for a certificate of recognition, or in connection with a
8determination of whether or not construction or modification
9which has been commenced is in accord with the permit issued by
10the State Board or whether construction or modification has
11been commenced without a permit having been obtained. The State
12Board may issue subpoenas duces tecum requiring the production
13of records and may administer oaths to such witnesses.
14    Any circuit court of this State, upon the application of
15the State Board or upon the application of any party to such
16proceedings, may, in its discretion, compel the attendance of
17witnesses, the production of books, papers, records, or
18memoranda and the giving of testimony before the State Board,
19by a proceeding as for contempt, or otherwise, in the same
20manner as production of evidence may be compelled before the
21court.
22    The State Board shall require all health facilities
23operating in this State to provide such reasonable reports at
24such times and containing such information as is needed by it
25to carry out the purposes and provisions of this Act. Prior to
26collecting information from health facilities, the State Board

 

 

HB1512- 27 -LRB099 06858 JLK 26936 b

1shall make reasonable efforts through a public process to
2consult with health facilities and associations that represent
3them to determine whether data and information requests will
4result in useful information for health planning, whether
5sufficient information is available from other sources, and
6whether data requested is routinely collected by health
7facilities and is available without retrospective record
8review. Data and information requests shall not impose undue
9paperwork burdens on health care facilities and personnel.
10Health facilities not complying with this requirement shall be
11reported to licensing, accrediting, certifying, or payment
12agencies as being in violation of State law. Health care
13facilities and other parties at interest shall have reasonable
14access, under rules established by the State Board, to all
15planning information submitted in accord with this Act
16pertaining to their area.
17    Among the reports to be required by the State Board are
18facility questionnaires for health care facilities licensed
19under the Ambulatory Surgical Treatment Center Act, the
20Hospital Licensing Act, the Nursing Home Care Act, the ID/DD
21Community Care Act, the Specialized Mental Health
22Rehabilitation Act, or the End Stage Renal Disease Facility
23Act. These questionnaires shall be conducted on an annual basis
24and compiled by the State Board. For health care facilities
25licensed under the Nursing Home Care Act or the Specialized
26Mental Health Rehabilitation Act, these reports shall include,

 

 

HB1512- 28 -LRB099 06858 JLK 26936 b

1but not be limited to, the identification of specialty services
2provided by the facility to patients, residents, and the
3community at large. Annual reports for facilities licensed
4under the ID/DD Community Care Act shall be different from the
5annual reports required of other health care facilities and
6shall be specific to those facilities licensed under the ID/DD
7Community Care Act. The Health Facilities and Services Review
8Board shall consult with associations representing facilities
9licensed under the ID/DD Community Care Act when developing the
10information requested in these annual reports. For health care
11facilities that contain long term care beds, the reports shall
12also include the number of staffed long term care beds,
13physical capacity for long term care beds at the facility, and
14long term care beds available for immediate occupancy. For
15purposes of this paragraph, "long term care beds" means beds
16(i) licensed under the Nursing Home Care Act, (ii) licensed
17under the ID/DD Community Care Act, (ii) (iii) licensed under
18the Hospital Licensing Act, or (iii) (iv) licensed under the
19Specialized Mental Health Rehabilitation Act and certified as
20skilled nursing or nursing facility beds under Medicaid or
21Medicare.
22(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
23eff. 7-13-12; 97-980, eff. 8-17-12; 98-1086, eff. 8-26-14.)
 
24    (20 ILCS 3960/14.1)
25    Sec. 14.1. Denial of permit; other sanctions.

 

 

HB1512- 29 -LRB099 06858 JLK 26936 b

1    (a) The State Board may deny an application for a permit or
2may revoke or take other action as permitted by this Act with
3regard to a permit as the State Board deems appropriate,
4including the imposition of fines as set forth in this Section,
5for any one or a combination of the following:
6        (1) The acquisition of major medical equipment without
7    a permit or in violation of the terms of a permit.
8        (2) The establishment, construction, or modification
9    of a health care facility without a permit or in violation
10    of the terms of a permit.
11        (3) The violation of any provision of this Act or any
12    rule adopted under this Act.
13        (4) The failure, by any person subject to this Act, to
14    provide information requested by the State Board or Agency
15    within 30 days after a formal written request for the
16    information.
17        (5) The failure to pay any fine imposed under this
18    Section within 30 days of its imposition.
19    (a-5) For facilities licensed under the ID/DD Community
20Care Act, no permit shall be denied on the basis of prior
21operator history, other than for actions specified under item
22(2), (4), or (5) of Section 3-117 of the ID/DD Community Care
23Act. For facilities licensed under the Specialized Mental
24Health Rehabilitation Act, no permit shall be denied on the
25basis of prior operator history, other than for actions
26specified under item (2), (4), or (5) of Section 3-117 of the

 

 

HB1512- 30 -LRB099 06858 JLK 26936 b

1Specialized Mental Health Rehabilitation Act. For facilities
2licensed under the Nursing Home Care Act, no permit shall be
3denied on the basis of prior operator history, other than for:
4(i) actions specified under item (2), (3), (4), (5), or (6) of
5Section 3-117 of the Nursing Home Care Act; (ii) actions
6specified under item (a)(6) of Section 3-119 of the Nursing
7Home Care Act; or (iii) actions within the preceding 5 years
8constituting a substantial and repeated failure to comply with
9the Nursing Home Care Act or the rules and regulations adopted
10by the Department under that Act. The State Board shall not
11deny a permit on account of any action described in this
12subsection (a-5) without also considering all such actions in
13the light of all relevant information available to the State
14Board, including whether the permit is sought to substantially
15comply with a mandatory or voluntary plan of correction
16associated with any action described in this subsection (a-5).
17    (b) Persons shall be subject to fines as follows:
18        (1) A permit holder who fails to comply with the
19    requirements of maintaining a valid permit shall be fined
20    an amount not to exceed 1% of the approved permit amount
21    plus an additional 1% of the approved permit amount for
22    each 30-day period, or fraction thereof, that the violation
23    continues.
24        (2) A permit holder who alters the scope of an approved
25    project or whose project costs exceed the allowable permit
26    amount without first obtaining approval from the State

 

 

HB1512- 31 -LRB099 06858 JLK 26936 b

1    Board shall be fined an amount not to exceed the sum of (i)
2    the lesser of $25,000 or 2% of the approved permit amount
3    and (ii) in those cases where the approved permit amount is
4    exceeded by more than $1,000,000, an additional $20,000 for
5    each $1,000,000, or fraction thereof, in excess of the
6    approved permit amount.
7        (2.5) A permit holder who fails to comply with the
8    post-permit and reporting requirements set forth in
9    Section 5 shall be fined an amount not to exceed $10,000
10    plus an additional $10,000 for each 30-day period, or
11    fraction thereof, that the violation continues. This fine
12    shall continue to accrue until the date that (i) the
13    post-permit requirements are met and the post-permit
14    reports are received by the State Board or (ii) the matter
15    is referred by the State Board to the State Board's legal
16    counsel. The accrued fine is not waived by the permit
17    holder submitting the required information and reports.
18    Prior to any fine beginning to accrue, the Board shall
19    notify, in writing, a permit holder of the due date for the
20    post-permit and reporting requirements no later than 30
21    days before the due date for the requirements. This
22    paragraph (2.5) takes effect 6 months after August 27, 2012
23    (the effective date of Public Act 97-1115).
24        (3) A person who acquires major medical equipment or
25    who establishes a category of service without first
26    obtaining a permit or exemption, as the case may be, shall

 

 

HB1512- 32 -LRB099 06858 JLK 26936 b

1    be fined an amount not to exceed $10,000 for each such
2    acquisition or category of service established plus an
3    additional $10,000 for each 30-day period, or fraction
4    thereof, that the violation continues.
5        (4) A person who constructs, modifies, or establishes a
6    health care facility without first obtaining a permit shall
7    be fined an amount not to exceed $25,000 plus an additional
8    $25,000 for each 30-day period, or fraction thereof, that
9    the violation continues.
10        (5) A person who discontinues a health care facility or
11    a category of service without first obtaining a permit
12    shall be fined an amount not to exceed $10,000 plus an
13    additional $10,000 for each 30-day period, or fraction
14    thereof, that the violation continues. For purposes of this
15    subparagraph (5), facilities licensed under the Nursing
16    Home Care Act or the ID/DD Community Care Act, with the
17    exceptions of facilities operated by a county or Illinois
18    Veterans Homes, are exempt from this permit requirement.
19    However, facilities licensed under the Nursing Home Care
20    Act or the ID/DD Community Care Act must comply with
21    Section 3-423 of the Nursing Home Care Act or Section 3-423
22    of the ID/DD Community Care Act and must provide the Board
23    and the Department of Human Services with 30 days' written
24    notice of its intent to close. Facilities licensed under
25    the ID/DD Community Care Act also must provide the Board
26    and the Department of Human Services with 30 days' written

 

 

HB1512- 33 -LRB099 06858 JLK 26936 b

1    notice of its intent to reduce the number of beds for a
2    facility.
3        (6) A person subject to this Act who fails to provide
4    information requested by the State Board or Agency within
5    30 days of a formal written request shall be fined an
6    amount not to exceed $1,000 plus an additional $1,000 for
7    each 30-day period, or fraction thereof, that the
8    information is not received by the State Board or Agency.
9    (c) Before imposing any fine authorized under this Section,
10the State Board shall afford the person or permit holder, as
11the case may be, an appearance before the State Board and an
12opportunity for a hearing before a hearing officer appointed by
13the State Board. The hearing shall be conducted in accordance
14with Section 10.
15    (d) All fines collected under this Act shall be transmitted
16to the State Treasurer, who shall deposit them into the
17Illinois Health Facilities Planning Fund.
18(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
19eff. 7-13-12; 97-980, eff. 8-17-12; 97-1115, eff. 8-27-12;
2098-463, eff. 8-16-13.)
 
21    Section 10. The Nursing Home Care Act is amended by
22changing Sections 3-102.2 and 3-103 as follows:
 
23    (210 ILCS 45/3-102.2)
24    Sec. 3-102.2. Supported congregate living arrangement

 

 

HB1512- 34 -LRB099 06858 JLK 26936 b

1demonstration. The Illinois Department may grant no more than 3
2waivers from the requirements of this Act for facilities
3participating in the supported congregate living arrangement
4demonstration. A joint waiver request must be made by an
5applicant and the Department on Aging. If the Department on
6Aging does not act upon an application within 60 days, the
7applicant may submit a written waiver request on its own
8behalf. The waiver request must include a specific program plan
9describing the types of residents to be served and the services
10that will be provided in the facility. The Department shall
11conduct an on-site review at each facility annually or as often
12as necessary to ascertain compliance with the program plan. The
13Department may revoke the waiver if it determines that the
14facility is not in compliance with the program plan. Nothing in
15this Section prohibits the Department from conducting
16complaint investigations.
17     A facility granted a waiver under this Section is not
18subject to the Illinois Health Facilities Planning Act, unless
19it subsequently applies for a certificate of need to convert to
20a nursing facility. A facility applying for conversion shall
21meet the licensure and certificate of need requirements in
22effect as of the date of application, and this provision may
23not be waived.
24(Source: P.A. 89-530, eff. 7-19-96.)
 
25    (210 ILCS 45/3-103)  (from Ch. 111 1/2, par. 4153-103)

 

 

HB1512- 35 -LRB099 06858 JLK 26936 b

1    Sec. 3-103. The procedure for obtaining a valid license
2shall be as follows:
3        (1) Application to operate a facility shall be made to
4    the Department on forms furnished by the Department.
5        (2) All license applications shall be accompanied with
6    an application fee. The fee for an annual license shall be
7    $1,990. Facilities that pay a fee or assessment pursuant to
8    Article V-C of the Illinois Public Aid Code shall be exempt
9    from the license fee imposed under this item (2). The fee
10    for a 2-year license shall be double the fee for the annual
11    license. The fees collected shall be deposited with the
12    State Treasurer into the Long Term Care Monitor/Receiver
13    Fund, which has been created as a special fund in the State
14    treasury. This special fund is to be used by the Department
15    for expenses related to the appointment of monitors and
16    receivers as contained in Sections 3-501 through 3-517 of
17    this Act, for the enforcement of this Act, for expenses
18    related to surveyor development, and for implementation of
19    the Abuse Prevention Review Team Act. All federal moneys
20    received as a result of expenditures from the Fund shall be
21    deposited into the Fund. The Department may reduce or waive
22    a penalty pursuant to Section 3-308 only if that action
23    will not threaten the ability of the Department to meet the
24    expenses required to be met by the Long Term Care
25    Monitor/Receiver Fund. The application shall be under oath
26    and the submission of false or misleading information shall

 

 

HB1512- 36 -LRB099 06858 JLK 26936 b

1    be a Class A misdemeanor. The application shall contain the
2    following information:
3            (a) The name and address of the applicant if an
4        individual, and if a firm, partnership, or
5        association, of every member thereof, and in the case
6        of a corporation, the name and address thereof and of
7        its officers and its registered agent, and in the case
8        of a unit of local government, the name and address of
9        its chief executive officer;
10            (b) The name and location of the facility for which
11        a license is sought;
12            (c) The name of the person or persons under whose
13        management or supervision the facility will be
14        conducted;
15            (d) The number and type of residents for which
16        maintenance, personal care, or nursing is to be
17        provided; and
18            (e) Such information relating to the number,
19        experience, and training of the employees of the
20        facility, any management agreements for the operation
21        of the facility, and of the moral character of the
22        applicant and employees as the Department may deem
23        necessary.
24        (3) Each initial application shall be accompanied by a
25    financial statement setting forth the financial condition
26    of the applicant and by a statement from the unit of local

 

 

HB1512- 37 -LRB099 06858 JLK 26936 b

1    government having zoning jurisdiction over the facility's
2    location stating that the location of the facility is not
3    in violation of a zoning ordinance. An initial application
4    for a new facility shall be accompanied by a permit as
5    required by the "Illinois Health Facilities Planning Act".
6    After the application is approved, the applicant shall
7    advise the Department every 6 months of any changes in the
8    information originally provided in the application.
9        (4) Other information necessary to determine the
10    identity and qualifications of an applicant to operate a
11    facility in accordance with this Act shall be included in
12    the application as required by the Department in
13    regulations.
14(Source: P.A. 96-758, eff. 8-25-09; 96-1372, eff. 7-29-10;
1596-1504, eff. 1-27-11; 96-1530, eff. 2-16-11; 97-489, eff.
161-1-12.)