(20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153) (Text of Section before amendment by P.A. 104-365) (Section scheduled to be repealed on December 31, 2029) Sec. 3. Definitions. As used in this Act: "Health care facilities" means and includes
the following facilities, organizations, and related persons: (1) An ambulatory surgical treatment center required |
| to be licensed pursuant to the Ambulatory Surgical Treatment Center Act.
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(2) An institution, place, building, or agency
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| required to be licensed pursuant to the Hospital Licensing Act.
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(3) Skilled and intermediate long term care
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| facilities licensed under the Nursing Home Care Act.
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(A) If a demonstration project under the Nursing
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| Home Care Act applies for a certificate of need to convert to a nursing facility, it shall meet the licensure and certificate of need requirements in effect as of the date of application.
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(B) Except as provided in item (A) of this
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| subsection, this Act does not apply to facilities granted waivers under Section 3-102.2 of the Nursing Home Care Act.
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(3.5) Skilled and intermediate care facilities
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| licensed under the ID/DD Community Care Act or the MC/DD Act. No permit or exemption is required for a facility licensed under the ID/DD Community Care Act or the MC/DD Act prior to the reduction of the number of beds at a facility. If there is a total reduction of beds at a facility licensed under the ID/DD Community Care Act or the MC/DD Act, this is a discontinuation or closure of the facility. If a facility licensed under the ID/DD Community Care Act or the MC/DD Act reduces the number of beds or discontinues the facility, that facility must notify the Board as provided in Section 14.1 of this Act.
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(3.7) Facilities licensed under the Specialized
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| Mental Health Rehabilitation Act of 2013.
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(4) Hospitals, nursing homes, ambulatory surgical
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| treatment centers, or kidney disease treatment centers maintained by the State or any department or agency thereof.
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(5) Kidney disease treatment centers, including a
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| free-standing hemodialysis unit required to meet the requirements of 42 CFR 494 in order to be certified for participation in Medicare and Medicaid under Titles XVIII and XIX of the federal Social Security Act.
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(A) This Act does not apply to a dialysis
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| facility that provides only dialysis training, support, and related services to individuals with end stage renal disease who have elected to receive home dialysis.
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(B) This Act does not apply to a dialysis unit
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| located in a licensed nursing home that offers or provides dialysis-related services to residents with end stage renal disease who have elected to receive home dialysis within the nursing home.
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(C) The Board, however, may require dialysis
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| facilities and licensed nursing homes under items (A) and (B) of this subsection to report statistical information on a quarterly basis to the Board to be used by the Board to conduct analyses on the need for proposed kidney disease treatment centers.
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(6) An institution, place, building, or room used for
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| the performance of outpatient surgical procedures that is leased, owned, or operated by or on behalf of an out-of-state facility.
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(7) An institution, place, building, or room used for
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| provision of a health care category of service, including, but not limited to, cardiac catheterization and open heart surgery.
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(8) An institution, place, building, or room housing
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| major medical equipment used in the direct clinical diagnosis or treatment of patients, and whose project cost is in excess of the capital expenditure minimum.
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"Health care facilities" does not include the following entities or facility transactions:
(1) Federally-owned facilities.
(2) Facilities used solely for healing by prayer or
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(3) An existing facility located on any campus
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| facility as defined in Section 5-5.8b of the Illinois Public Aid Code, provided that the campus facility encompasses 30 or more contiguous acres and that the new or renovated facility is intended for use by a licensed residential facility.
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(4) Facilities licensed under the Supportive
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| Residences Licensing Act or the Assisted Living and Shared Housing Act.
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(5) Facilities designated as supportive living
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| facilities that are in good standing with the program established under Section 5-5.01a of the Illinois Public Aid Code.
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(6) Facilities established and operating under the
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| Alternative Health Care Delivery Act as a children's community-based health care center alternative health care model demonstration program or as an Alzheimer's Disease Management Center alternative health care model demonstration program.
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(7) The closure of an entity or a portion of an
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| entity licensed under the Nursing Home Care Act, the Specialized Mental Health Rehabilitation Act of 2013, the ID/DD Community Care Act, or the MC/DD Act, with the exception of facilities operated by a county or Illinois Veterans Homes, that elect to convert, in whole or in part, to an assisted living or shared housing establishment licensed under the Assisted Living and Shared Housing Act and with the exception of a facility licensed under the Specialized Mental Health Rehabilitation Act of 2013 in connection with a proposal to close a facility and re-establish the facility in another location.
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(8) Any change of ownership of a health care facility
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| that is licensed under the Nursing Home Care Act, the Specialized Mental Health Rehabilitation Act of 2013, the ID/DD Community Care Act, or the MC/DD Act, with the exception of facilities operated by a county or Illinois Veterans Homes. Changes of ownership of facilities licensed under the Nursing Home Care Act must meet the requirements set forth in Sections 3-101 through 3-119 of the Nursing Home Care Act.
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(9) (Blank).
With the exception of those health care facilities specifically
included in this Section, nothing in this Act shall be intended to
include facilities operated as a part of the practice of a physician or
other licensed health care professional, whether practicing in his
individual capacity or within the legal structure of any partnership,
medical or professional corporation, or unincorporated medical or
professional group. Further, this Act shall not apply to physicians or
other licensed health care professional's practices where such practices
are carried out in a portion of a health care facility under contract
with such health care facility by a physician or by other licensed
health care professionals, whether practicing in his individual capacity
or within the legal structure of any partnership, medical or
professional corporation, or unincorporated medical or professional
groups, unless the entity constructs, modifies, or establishes a health care facility as specifically defined in this Section. This Act shall apply to construction or
modification and to establishment by such health care facility of such
contracted portion which is subject to facility licensing requirements,
irrespective of the party responsible for such action or attendant
financial obligation.
"Person" means any one or more natural persons, legal entities,
governmental bodies other than federal, or any combination thereof.
"Consumer" means any person other than a person (a) whose major
occupation currently involves or whose official capacity within the last
12 months has involved the providing, administering or financing of any
type of health care facility, (b) who is engaged in health research or
the teaching of health, (c) who has a material financial interest in any
activity which involves the providing, administering or financing of any
type of health care facility, or (d) who is or ever has been a member of
the immediate family of the person defined by item (a), (b), or (c).
"State Board" or "Board" means the Health Facilities and Services Review Board.
"Construction or modification" means the establishment, erection,
building, alteration, reconstruction, modernization, improvement,
extension, discontinuation, change of ownership, of or by a health care
facility, or the purchase or acquisition by or through a health care facility
of
equipment or service for diagnostic or therapeutic purposes or for
facility administration or operation, or any capital expenditure made by
or on behalf of a health care facility which
exceeds the capital expenditure minimum; however, any capital expenditure
made by or on behalf of a health care facility for (i) the construction or
modification of a facility licensed under the Assisted Living and Shared
Housing Act or (ii) a conversion project undertaken in accordance with Section 30 of the Older Adult Services Act shall be excluded from any obligations under this Act.
"Establish" means the construction of a health care facility or the
replacement of an existing facility on another site or the initiation of a category of service.
"Major medical equipment" means medical equipment which is used for the
provision of medical and other health services and which costs in excess
of the capital expenditure minimum, except that such term does not include
medical equipment acquired
by or on behalf of a clinical laboratory to provide clinical laboratory
services if the clinical laboratory is independent of a physician's office
and a hospital and it has been determined under Title XVIII of the Social
Security Act to meet the requirements of paragraphs (10) and (11) of Section
1861(s) of such Act. In determining whether medical equipment has a value
in excess of the capital expenditure minimum, the value of studies, surveys,
designs, plans, working drawings, specifications, and other activities
essential to the acquisition of such equipment shall be included.
"Capital expenditure" means an expenditure: (A) made by or on behalf of
a health care facility (as such a facility is defined in this Act); and
(B) which under generally accepted accounting principles is not properly
chargeable as an expense of operation and maintenance, or is made to obtain
by lease or comparable arrangement any facility or part thereof or any
equipment for a facility or part; and which exceeds the capital expenditure
minimum.
For the purpose of this paragraph, the cost of any studies, surveys, designs,
plans, working drawings, specifications, and other activities essential
to the acquisition, improvement, expansion, or replacement of any plant
or equipment with respect to which an expenditure is made shall be included
in determining if such expenditure exceeds the capital expenditures minimum.
Unless otherwise interdependent, or submitted as one project by the applicant, components of construction or modification undertaken by means of a single construction contract or financed through the issuance of a single debt instrument shall not be grouped together as one project. Donations of equipment
or facilities to a health care facility which if acquired directly by such
facility would be subject to review under this Act shall be considered capital
expenditures, and a transfer of equipment or facilities for less than fair
market value shall be considered a capital expenditure for purposes of this
Act if a transfer of the equipment or facilities at fair market value would
be subject to review.
"Capital expenditure minimum" means $11,500,000 for projects by hospital applicants, $6,500,000 for applicants for projects related to skilled and intermediate care long-term care facilities licensed under the Nursing Home Care Act, and $3,000,000 for projects by all other applicants, which shall be annually
adjusted to reflect the increase in construction costs due to inflation, for major medical equipment and for all other
capital expenditures.
"Financial commitment" means the commitment of at least 33% of total funds assigned to cover total project cost, which occurs by the actual expenditure of 33% or more of the total project cost or the commitment to expend 33% or more of the total project cost by signed contracts or other legal means.
"Non-clinical service area" means an area (i) for the benefit of the
patients, visitors, staff, or employees of a health care facility and (ii) not
directly related to the diagnosis, treatment, or rehabilitation of persons
receiving services from the health care facility. "Non-clinical service areas"
include, but are not limited to, chapels; gift shops; news stands; computer
systems; tunnels, walkways, and elevators; telephone systems; projects to
comply with life safety codes; educational facilities; student housing;
patient, employee, staff, and visitor dining areas; administration and
volunteer offices; modernization of structural components (such as roof
replacement and masonry work); boiler repair or replacement; vehicle
maintenance and storage facilities; parking facilities; mechanical systems for
heating, ventilation, and air conditioning; loading docks; and repair or
replacement of carpeting, tile, wall coverings, window coverings or treatments,
or furniture. Solely for the purpose of this definition, "non-clinical service
area" does not include health and fitness centers.
"Areawide" means a major area of the State delineated on a
geographic, demographic, and functional basis for health planning and
for health service and having within it one or more local areas for
health planning and health service. The term "region", as contrasted
with the term "subregion", and the word "area" may be used synonymously
with the term "areawide".
"Local" means a subarea of a delineated major area that on a
geographic, demographic, and functional basis may be considered to be
part of such major area. The term "subregion" may be used synonymously
with the term "local".
"Physician" means a person licensed to practice in accordance with
the Medical Practice Act of 1987, as amended.
"Licensed health care professional" means a person licensed to
practice a health profession under pertinent licensing statutes of the
State of Illinois.
"Director" means the Director of the Illinois Department of Public Health.
"Agency" or "Department" means the Illinois Department of Public Health.
"Alternative health care model" means a facility or program authorized
under the Alternative Health Care Delivery Act.
"Out-of-state facility" means a person that is both (i) licensed as a
hospital or as an ambulatory surgery center under the laws of another state
or that
qualifies as a hospital or an ambulatory surgery center under regulations
adopted pursuant to the Social Security Act and (ii) not licensed under the
Ambulatory Surgical Treatment Center Act, the Hospital Licensing Act, or the
Nursing Home Care Act. Affiliates of out-of-state facilities shall be
considered out-of-state facilities. Affiliates of Illinois licensed health
care facilities 100% owned by an Illinois licensed health care facility, its
parent, or Illinois physicians licensed to practice medicine in all its
branches shall not be considered out-of-state facilities. Nothing in
this definition shall be
construed to include an office or any part of an office of a physician licensed
to practice medicine in all its branches in Illinois that is not required to be
licensed under the Ambulatory Surgical Treatment Center Act.
"Change of ownership of a health care facility" means a change in the
person
who has ownership or
control of a health care facility's physical plant and capital assets. A change
in ownership is indicated by
the following transactions: sale, transfer, acquisition, lease, change of
sponsorship, or other means of
transferring control.
"Related person" means any person that: (i) is at least 50% owned, directly
or indirectly, by
either the health care facility or a person owning, directly or indirectly, at
least 50% of the health
care facility; or (ii) owns, directly or indirectly, at least 50% of the
health care facility.
"Charity care" means care provided by a health care facility for which the provider does not expect to receive payment from the patient or a third-party payer.
"Freestanding emergency center" means a facility subject to licensure under Section 32.5 of the Emergency Medical Services (EMS) Systems Act.
"Category of service" means a grouping by generic class of various types or levels of support functions, equipment, care, or treatment provided to patients or residents, including, but not limited to, classes such as medical-surgical, pediatrics, or cardiac catheterization. A category of service may include subcategories or levels of care that identify a particular degree or type of care within the category of service. Nothing in this definition shall be construed to include the practice of a physician or other licensed health care professional while functioning in an office providing for the care, diagnosis, or treatment of patients. A category of service that is subject to the Board's jurisdiction must be designated in rules adopted by the Board.
"State Board Staff Report" means the document that sets forth the review and findings of the State Board staff, as prescribed by the State Board, regarding applications subject to Board jurisdiction.
(Source: P.A. 100-518, eff. 6-1-18; 100-581, eff. 3-12-18; 100-957, eff. 8-19-18; 101-81, eff. 7-12-19; 101-650, eff. 7-7-20.)
(Text of Section after amendment by P.A. 104-365)
(Section scheduled to be repealed on December 31, 2029)
Sec. 3. Definitions. As used in this Act:
"Health care facilities" means and includes the following facilities, organizations, and related persons:
(1) An ambulatory surgical treatment center required
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| to be licensed pursuant to the Ambulatory Surgical Treatment Center Act.
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|
(2) An institution, place, building, or agency
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| required to be licensed pursuant to the Hospital Licensing Act.
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(3) Skilled and intermediate long term care
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| facilities licensed under the Nursing Home Care Act.
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(A) If a demonstration project under the Nursing
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| Home Care Act applies for a certificate of need to convert to a nursing facility, it shall meet the licensure and certificate of need requirements in effect as of the date of application.
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(B) Except as provided in item (A) of this
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| subsection, this Act does not apply to facilities granted waivers under Section 3-102.2 of the Nursing Home Care Act.
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(3.5) Skilled and intermediate care facilities
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| licensed under the ID/DD Community Care Act or the MC/DD Act. No permit or exemption is required for a facility licensed under the ID/DD Community Care Act or the MC/DD Act prior to the reduction of the number of beds at a facility. If there is a total reduction of beds at a facility licensed under the ID/DD Community Care Act or the MC/DD Act, this is a discontinuation or closure of the facility. If a facility licensed under the ID/DD Community Care Act or the MC/DD Act reduces the number of beds or discontinues the facility, that facility must notify the Board as provided in Section 14.1 of this Act.
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(3.7) Facilities licensed under the Specialized
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| Mental Health Rehabilitation Act of 2013.
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(4) Hospitals, nursing homes, ambulatory surgical
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| treatment centers, or kidney disease treatment centers maintained by the State or any department or agency thereof.
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(5) Kidney disease treatment centers, including a
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| free-standing hemodialysis unit required to meet the requirements of 42 CFR 494 in order to be certified for participation in Medicare and Medicaid under Titles XVIII and XIX of the federal Social Security Act.
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(A) This Act does not apply to a dialysis
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| facility that provides only dialysis training, support, and related services to individuals with end stage renal disease who have elected to receive home dialysis.
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(B) This Act does not apply to a dialysis unit
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| located in a licensed nursing home that offers or provides dialysis-related services to residents with end stage renal disease who have elected to receive home dialysis within the nursing home.
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(C) The Board, however, may require dialysis
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| facilities and licensed nursing homes under items (A) and (B) of this subsection to report statistical information on a quarterly basis to the Board to be used by the Board to conduct analyses on the need for proposed kidney disease treatment centers.
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(6) An institution, place, building, or room used for
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| the performance of outpatient surgical procedures that is leased, owned, or operated by or on behalf of an out-of-state facility.
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(7) An institution, place, building, or room used for
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| provision of a health care category of service, including, but not limited to, cardiac catheterization and open heart surgery.
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|
(8) An institution, place, building, or room housing
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| major medical equipment used in the direct clinical diagnosis or treatment of patients, and whose project cost is in excess of the capital expenditure minimum.
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|
"Health care facilities" does not include the following entities or facility transactions:
(1) Federally-owned facilities.
(2) Facilities used solely for healing by prayer or
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|
(3) An existing facility located on any campus
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| facility as defined in Section 5-5.8b of the Illinois Public Aid Code, provided that the campus facility encompasses 30 or more contiguous acres and that the new or renovated facility is intended for use by a licensed residential facility.
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(4) Facilities licensed under the Supportive
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| Residences Licensing Act or the Assisted Living and Shared Housing Act.
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(5) Facilities designated as supportive living
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| facilities that are in good standing with the program established under Section 5-5.01a of the Illinois Public Aid Code.
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(6) Facilities established and operating under the
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| Alternative Health Care Delivery Act as a children's community-based health care center alternative health care model demonstration program or as an Alzheimer's Disease Management Center alternative health care model demonstration program.
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(7) The closure of an entity or a portion of an
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| entity licensed under the Nursing Home Care Act, the Specialized Mental Health Rehabilitation Act of 2013, the ID/DD Community Care Act, or the MC/DD Act, with the exception of facilities operated by a county or Illinois Veterans Homes, that elect to convert, in whole or in part, to an assisted living or shared housing establishment licensed under the Assisted Living and Shared Housing Act and with the exception of a facility licensed under the Specialized Mental Health Rehabilitation Act of 2013 in connection with a proposal to close a facility and re-establish the facility in another location.
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(8) Any change of ownership of a health care facility
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| that is licensed under the Nursing Home Care Act, the Specialized Mental Health Rehabilitation Act of 2013, the ID/DD Community Care Act, or the MC/DD Act, with the exception of facilities operated by a county or Illinois Veterans Homes. Changes of ownership of facilities licensed under the Nursing Home Care Act must meet the requirements set forth in Sections 3-101 through 3-119 of the Nursing Home Care Act.
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(9) (Blank).
With the exception of those health care facilities specifically included in this Section, nothing in this Act shall be intended to include facilities operated as a part of the practice of a physician or other licensed health care professional, whether practicing in his individual capacity or within the legal structure of any partnership, medical or professional corporation, or unincorporated medical or professional group. Further, this Act shall not apply to physicians or other licensed health care professional's practices where such practices are carried out in a portion of a health care facility under contract with such health care facility by a physician or by other licensed health care professionals, whether practicing in his individual capacity or within the legal structure of any partnership, medical or professional corporation, or unincorporated medical or professional groups, unless the entity constructs, modifies, or establishes a health care facility as specifically defined in this Section. This Act shall apply to construction or modification and to establishment by such health care facility of such contracted portion which is subject to facility licensing requirements, irrespective of the party responsible for such action or attendant financial obligation.
"Person" means any one or more natural persons, legal entities, governmental bodies other than federal, or any combination thereof.
"Consumer" means any person other than a person (a) whose major occupation currently involves or whose official capacity within the last 12 months has involved the providing, administering or financing of any type of health care facility, (b) who is engaged in health research or the teaching of health, (c) who has a material financial interest in any activity which involves the providing, administering or financing of any type of health care facility, or (d) who is or ever has been a member of the immediate family of the person defined by item (a), (b), or (c).
"State Board" or "Board" means the Health Facilities and Services Review Board.
"Construction or modification" means the establishment, erection, building, alteration, reconstruction, modernization, improvement, extension, discontinuation, change of ownership, of or by a health care facility, or the purchase or acquisition by or through a health care facility of equipment or service for diagnostic or therapeutic purposes or for facility administration or operation, or any capital expenditure made by or on behalf of a health care facility which exceeds the capital expenditure minimum; however, any capital expenditure made by or on behalf of a health care facility for (i) the construction or modification of a facility licensed under the Assisted Living and Shared Housing Act or (ii) a conversion project undertaken in accordance with Section 30 of the Older Adult Services Act shall be excluded from any obligations under this Act.
"Establish" means the construction of a health care facility or the replacement of an existing facility on another site or the initiation of a category of service.
"Major medical equipment" means medical equipment which is used for the provision of medical and other health services and which costs in excess of the capital expenditure minimum, except that such term does not include medical equipment acquired by or on behalf of a clinical laboratory to provide clinical laboratory services if the clinical laboratory is independent of a physician's office and a hospital and it has been determined under Title XVIII of the Social Security Act to meet the requirements of paragraphs (10) and (11) of Section 1861(s) of such Act. In determining whether medical equipment has a value in excess of the capital expenditure minimum, the value of studies, surveys, designs, plans, working drawings, specifications, and other activities essential to the acquisition of such equipment shall be included.
"Capital expenditure" means an expenditure: (A) made by or on behalf of a health care facility (as such a facility is defined in this Act); and (B) which under generally accepted accounting principles is not properly chargeable as an expense of operation and maintenance, or is made to obtain by lease or comparable arrangement any facility or part thereof or any equipment for a facility or part; and which exceeds the capital expenditure minimum.
For the purpose of this paragraph, the cost of any studies, surveys, designs, plans, working drawings, specifications, and other activities essential to the acquisition, improvement, expansion, or replacement of any plant or equipment with respect to which an expenditure is made shall be included in determining if such expenditure exceeds the capital expenditures minimum. Unless otherwise interdependent, or submitted as one project by the applicant, components of construction or modification undertaken by means of a single construction contract or financed through the issuance of a single debt instrument shall not be grouped together as one project. Donations of equipment or facilities to a health care facility which if acquired directly by such facility would be subject to review under this Act shall be considered capital expenditures, and a transfer of equipment or facilities for less than fair market value shall be considered a capital expenditure for purposes of this Act if a transfer of the equipment or facilities at fair market value would be subject to review.
"Capital expenditure minimum" means $11,500,000 for projects by hospital applicants, $6,500,000 for applicants for projects related to skilled and intermediate care long-term care facilities licensed under the Nursing Home Care Act, and $3,000,000 for projects by all other applicants, which shall be annually adjusted to reflect the increase in construction costs due to inflation, for major medical equipment and for all other capital expenditures.
"Financial commitment" means the commitment of at least 33% of total funds assigned to cover total project cost, which occurs by the actual expenditure of 33% or more of the total project cost or the commitment to expend 33% or more of the total project cost by signed contracts or other legal means.
"Non-clinical service area" means an area (i) for the benefit of the patients, visitors, staff, or employees of a health care facility and (ii) not directly related to the diagnosis, treatment, or rehabilitation of persons receiving services from the health care facility. "Non-clinical service areas" include, but are not limited to, chapels; gift shops; news stands; computer systems; tunnels, walkways, and elevators; telephone systems; projects to comply with life safety codes; educational facilities; components in a patient care unit used as educational space, consultation and touchdown rooms, and on-call rooms; student housing; patient, employee, staff, and visitor dining areas; administration and volunteer offices; modernization of structural components (such as roof replacement and masonry work); boiler repair or replacement; vehicle maintenance and storage facilities; parking facilities; mechanical systems for heating, ventilation, and air conditioning; loading docks; and repair or replacement of carpeting, tile, wall coverings, window coverings or treatments, or furniture. "Non-clinical service area" does not include health and fitness centers, areas in a patient care unit, or areas that are required by Department licensing standards, including life safety code regulations, such as hallways and other interdependent components to a clinical area.
"Areawide" means a major area of the State delineated on a geographic, demographic, and functional basis for health planning and for health service and having within it one or more local areas for health planning and health service. The term "region", as contrasted with the term "subregion", and the word "area" may be used synonymously with the term "areawide".
"Local" means a subarea of a delineated major area that on a geographic, demographic, and functional basis may be considered to be part of such major area. The term "subregion" may be used synonymously with the term "local".
"Physician" means a person licensed to practice in accordance with the Medical Practice Act of 1987, as amended.
"Licensed health care professional" means a person licensed to practice a health profession under pertinent licensing statutes of the State of Illinois.
"Director" means the Director of the Illinois Department of Public Health.
"Agency" or "Department" means the Illinois Department of Public Health.
"Alternative health care model" means a facility or program authorized under the Alternative Health Care Delivery Act.
"Out-of-state facility" means a person that is both (i) licensed as a hospital or as an ambulatory surgery center under the laws of another state or that qualifies as a hospital or an ambulatory surgery center under regulations adopted pursuant to the Social Security Act and (ii) not licensed under the Ambulatory Surgical Treatment Center Act, the Hospital Licensing Act, or the Nursing Home Care Act. Affiliates of out-of-state facilities shall be considered out-of-state facilities. Affiliates of Illinois licensed health care facilities 100% owned by an Illinois licensed health care facility, its parent, or Illinois physicians licensed to practice medicine in all its branches shall not be considered out-of-state facilities. Nothing in this definition shall be construed to include an office or any part of an office of a physician licensed to practice medicine in all its branches in Illinois that is not required to be licensed under the Ambulatory Surgical Treatment Center Act.
"Change of ownership of a health care facility" means a change in the person who has ownership or control of a health care facility's physical plant and capital assets. A change in ownership is indicated by the following transactions: sale, transfer, acquisition, lease, change of sponsorship, or other means of transferring control.
"Related person" means any person that: (i) is at least 50% owned, directly or indirectly, by either the health care facility or a person owning, directly or indirectly, at least 50% of the health care facility; or (ii) owns, directly or indirectly, at least 50% of the health care facility.
"Charity care" means care provided by a health care facility for which the provider does not expect to receive payment from the patient or a third-party payer.
"Freestanding emergency center" means a facility subject to licensure under Section 32.5 of the Emergency Medical Services (EMS) Systems Act.
"Category of service" means a grouping by generic class of various types or levels of support functions, equipment, care, or treatment provided to patients or residents, including, but not limited to, classes such as medical-surgical, pediatrics, or cardiac catheterization. A category of service may include subcategories or levels of care that identify a particular degree or type of care within the category of service. Nothing in this definition shall be construed to include the practice of a physician or other licensed health care professional while functioning in an office providing for the care, diagnosis, or treatment of patients. A category of service that is subject to the Board's jurisdiction must be designated in rules adopted by the Board.
"State Board Staff Report" means the document that sets forth the review and findings of the State Board staff, as prescribed by the State Board, regarding applications subject to Board jurisdiction.
"Patient care unit" means a physically identifiable and organized unit in a clearly defined administrative and geographic area that meets applicable standards of service in which nursing care and therapeutic services are provided on a continuous basis and to which specific nursing and support staff are assigned. "Patient care unit" does not include education spaces, consultation and touchdown rooms, and on-call rooms that are not required by Department licensing standards.
"Provider" includes, but is not limited to, a hospital, long-term care facility, end-stage renal dialysis facility, ambulatory surgical treatment center, freestanding emergency center, or birth center.
(Source: P.A. 104-365, eff. 1-1-26.)
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(20 ILCS 3960/12) (from Ch. 111 1/2, par. 1162)
(Section scheduled to be repealed on December 31, 2029) Sec. 12. Powers and duties of State Board. For purposes of this Act,
the State Board
shall
exercise the following powers and duties:
(1) Prescribe rules, regulations, standards, |
| criteria, procedures or reviews which may vary according to the purpose for which a particular review is being conducted or the type of project reviewed and which are required to carry out the provisions and purposes of this Act. Policies and procedures of the State Board shall take into consideration the priorities and needs of medically underserved areas and other health care services, giving special consideration to the impact of projects on access to safety net services.
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(2) Adopt procedures for public notice and hearing on
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| all proposed rules, regulations, standards, criteria, and plans required to carry out the provisions of this Act.
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(3) (Blank).
(4) Develop criteria and standards for health care
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| facilities planning, conduct statewide inventories of health care facilities, maintain an updated inventory on the Board's web site reflecting the most recent bed and service changes and updated need determinations when new census data become available or new need formulae are adopted, and develop health care facility plans which shall be utilized in the review of applications for permit under this Act. Such health facility plans shall be coordinated by the Board with pertinent State Plans. Inventories pursuant to this Section of skilled or intermediate care facilities licensed under the Nursing Home Care Act, skilled or intermediate care facilities licensed under the ID/DD Community Care Act, skilled or intermediate care facilities licensed under the MC/DD Act, facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013, or nursing homes licensed under the Hospital Licensing Act shall be conducted on an annual basis no later than July 1 of each year and shall include among the information requested a list of all services provided by a facility to its residents and to the community at large and differentiate between active and inactive beds.
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In developing health care facility plans, the State
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| Board shall consider, but shall not be limited to, the following:
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(a) The size, composition and growth of the
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| population of the area to be served;
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(b) The number of existing and planned facilities
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| offering similar programs;
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(c) The extent of utilization of existing
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(d) The availability of facilities which may
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| serve as alternatives or substitutes;
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(e) The availability of personnel necessary to
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| the operation of the facility;
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(f) Multi-institutional planning and the
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| establishment of multi-institutional systems where feasible;
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(g) The financial and economic feasibility of
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| proposed construction or modification; and
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(h) In the case of health care facilities
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| established by a religious body or denomination, the needs of the members of such religious body or denomination may be considered to be public need.
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The health care facility plans which are developed
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| and adopted in accordance with this Section shall form the basis for the plan of the State to deal most effectively with statewide health needs in regard to health care facilities.
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(5) Coordinate with other state agencies having
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| responsibilities affecting health care facilities, including those of licensure and cost reporting.
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(6) Solicit, accept, hold and administer on behalf of
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| the State any grants or bequests of money, securities or property for use by the State Board in the administration of this Act; and enter into contracts consistent with the appropriations for purposes enumerated in this Act.
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|
(7) (Blank).
(8) Prescribe rules, regulations, standards, and
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| criteria for the conduct of an expeditious review of applications for permits for projects of construction or modification of a health care facility, which projects are classified as emergency, substantive, or non-substantive in nature.
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|
Substantive projects shall include no more than the
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(a) Projects to construct (1) a new or
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| replacement facility located on a new site or (2) a replacement facility located on the same site as the original facility and the cost of the replacement facility exceeds the capital expenditure minimum, which shall be reviewed by the Board within 120 days;
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|
(b) Projects proposing a (1) new service within
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| an existing healthcare facility or (2) discontinuation of a service within an existing healthcare facility, which shall be reviewed by the Board within 60 days; or
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|
(c) Projects proposing a change in the bed
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| capacity of a health care facility by an increase in the total number of beds or by a redistribution of beds among various categories of service or by a relocation of beds from one physical facility or site to another by more than 20 beds or more than 10% of total bed capacity, as defined by the State Board, whichever is less, over a 2-year period.
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The Chairman may approve applications for exemption
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| that meet the criteria set forth in rules or refer them to the full Board. The Chairman may approve any unopposed application that meets all of the review criteria or refer them to the full Board.
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|
Such rules shall not prevent the conduct of a public
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| hearing upon the timely request of an interested party. Such reviews shall not exceed 60 days from the date the application is declared to be complete.
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(9) Prescribe rules, regulations, standards, and
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| criteria pertaining to the granting of permits for construction and modifications which are emergent in nature and must be undertaken immediately to prevent or correct structural deficiencies or hazardous conditions that may harm or injure persons using the facility, as defined in the rules and regulations of the State Board. This procedure is exempt from public hearing requirements of this Act.
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|
(10) Prescribe rules, regulations, standards and
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| criteria for the conduct of an expeditious review, not exceeding 60 days, of applications for permits for projects to construct or modify health care facilities which are needed for the care and treatment of persons who have acquired immunodeficiency syndrome (AIDS) or related conditions.
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|
(10.5) Provide its rationale when voting on an item
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| before it at a State Board meeting in order to comply with subsection (b) of Section 3-108 of the Code of Civil Procedure.
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|
(11) Issue written decisions upon request of the
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| applicant or an adversely affected party to the Board. Requests for a written decision shall be made within 15 days after the Board meeting in which a final decision has been made. A "final decision" for purposes of this Act is the decision to approve or deny an application, or take other actions permitted under this Act, at the time and date of the meeting that such action is scheduled by the Board. The transcript of the State Board meeting shall be incorporated into the Board's final decision. The staff of the Board shall prepare a written copy of the final decision and the Board shall approve a final copy for inclusion in the formal record. The Board shall consider, for approval, the written draft of the final decision no later than the next scheduled Board meeting. The written decision shall identify the applicable criteria and factors listed in this Act and the Board's regulations that were taken into consideration by the Board when coming to a final decision. If the Board denies or fails to approve an application for permit or exemption, the Board shall include in the final decision a detailed explanation as to why the application was denied and identify what specific criteria or standards the applicant did not fulfill.
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|
(12) (Blank).
(13) Provide a mechanism for the public to comment
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| on, and request changes to, draft rules and standards.
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|
(14) Implement public information campaigns to
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| regularly inform the general public about the opportunity for public hearings and public hearing procedures.
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|
(15) Establish a separate set of rules and guidelines
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| for long-term care that recognizes that nursing homes are a different business line and service model from other regulated facilities. An open and transparent process shall be developed that considers the following: how skilled nursing fits in the continuum of care with other care providers, modernization of nursing homes, establishment of more private rooms, development of alternative services, and current trends in long-term care services. The Chairman of the Board shall appoint a permanent Health Services Review Board Long-term Care Facility Advisory Subcommittee that shall develop and recommend to the Board the rules to be established by the Board under this paragraph (15). The Subcommittee shall also provide continuous review and commentary on policies and procedures relative to long-term care and the review of related projects. The Subcommittee shall make recommendations to the Board no later than January 1, 2016 and every January thereafter pursuant to the Subcommittee's responsibility for the continuous review and commentary on policies and procedures relative to long-term care. In consultation with other experts from the health field of long-term care, the Board and the Subcommittee shall study new approaches to the current bed need formula and Health Service Area boundaries to encourage flexibility and innovation in design models reflective of the changing long-term care marketplace and consumer preferences and submit its recommendations to the Chairman of the Board no later than January 1, 2017. The Subcommittee shall evaluate, and make recommendations to the State Board regarding, the buying, selling, and exchange of beds between long-term care facilities within a specified geographic area or drive time. The Board shall file the proposed related administrative rules for the separate rules and guidelines for long-term care required by this paragraph (15) by no later than September 30, 2011. The Subcommittee shall be provided a reasonable and timely opportunity to review and comment on any review, revision, or updating of the criteria, standards, procedures, and rules used to evaluate project applications as provided under Section 12.3 of this Act.
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|
The Chairman of the Board shall appoint voting
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| members of the Subcommittee, who shall serve for a period of 3 years, with one-third of the terms expiring each January, to be determined by lot. Appointees shall include, but not be limited to, recommendations from each of the 3 statewide long-term care associations, with an equal number to be appointed from each. Compliance with this provision shall be through the appointment and reappointment process. All appointees serving as of April 1, 2015 shall serve to the end of their term as determined by lot or until the appointee voluntarily resigns, whichever is earlier.
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|
One representative from the Department of Public
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| Health, the Department of Healthcare and Family Services, the Department on Aging, and the Department of Human Services may each serve as an ex-officio non-voting member of the Subcommittee. The Chairman of the Board shall select a Subcommittee Chair, who shall serve for a period of 3 years.
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|
(16) Prescribe the format of the State Board Staff
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| Report. A State Board Staff Report shall pertain to applications that include, but are not limited to, applications for permit or exemption, applications for permit renewal, applications for extension of the financial commitment period, applications requesting a declaratory ruling, or applications under the Health Care Worker Self-Referral Act. State Board Staff Reports shall compare applications to the relevant review criteria under the Board's rules.
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|
(17) Establish a separate set of rules and guidelines
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| for facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013. An application for the re-establishment of a facility in connection with the relocation of the facility shall not be granted unless the applicant has a contractual relationship with at least one hospital to provide emergency and inpatient mental health services required by facility consumers, and at least one community mental health agency to provide oversight and assistance to facility consumers while living in the facility, and appropriate services, including case management, to assist them to prepare for discharge and reside stably in the community thereafter. No new facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013 shall be established after June 16, 2014 (the effective date of Public Act 98-651) except in connection with the relocation of an existing facility to a new location. An application for a new location shall not be approved unless there are adequate community services accessible to the consumers within a reasonable distance, or by use of public transportation, so as to facilitate the goal of achieving maximum individual self-care and independence. At no time shall the total number of authorized beds under this Act in facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013 exceed the number of authorized beds on June 16, 2014 (the effective date of Public Act 98-651).
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|
(18) Elect a Vice Chairman to preside over State
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| Board meetings and otherwise act in place of the Chairman when the Chairman is unavailable.
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|
(Source: P.A. 100-518, eff. 6-1-18; 100-681, eff. 8-3-18; 101-83, eff. 7-15-19.)
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(20 ILCS 3960/14.1)
(Section scheduled to be repealed on December 31, 2029) Sec. 14.1. Denial of permit; other sanctions. (a) The State Board may deny an application for a permit or may revoke or
take other action as permitted by this Act with regard to a permit as the State
Board deems appropriate, including the imposition of fines as set forth in this
Section, for any one or a combination of the following: (1) The acquisition of major medical equipment |
| without a permit or in violation of the terms of a permit.
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|
(2) The establishment, construction, modification, or
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| change of ownership of a health care facility without a permit or exemption or in violation of the terms of a permit.
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|
(3) The violation of any provision of this Act or any
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| rule adopted under this Act.
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|
(4) The failure, by any person subject to this Act,
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| to provide information requested by the State Board or Agency within 30 days after a formal written request for the information.
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|
(5) The failure to pay any fine imposed under this
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| Section within 30 days of its imposition.
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|
(a-5) For facilities licensed under the ID/DD Community Care Act, no permit shall be denied on the basis of prior operator history, other than for actions specified under item (2), (4), or (5) of Section 3-117 of the ID/DD Community Care Act. For facilities licensed under the MC/DD Act, no permit shall be denied on the basis of prior operator history, other than for actions specified under item (2), (4), or (5) of Section 3-117 of the MC/DD Act. For facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013, no permit shall be denied on the basis of prior operator history, other than for actions specified under subsections (a) and (b) of Section 4-109 of the Specialized Mental Health Rehabilitation Act of 2013. For facilities licensed under the Nursing Home Care Act, no permit shall be denied on the basis of prior operator history, other than for: (i) actions specified under item (2), (3), (4), (5), or (6) of Section 3-117 of the Nursing Home Care Act; (ii) actions specified under item (a)(6) of Section 3-119 of the Nursing Home Care Act; or (iii) actions within the preceding 5 years constituting a substantial and repeated failure to comply with the Nursing Home Care Act or the rules and regulations adopted by the Department under that Act. The State Board shall not deny a permit on account of any action described in this subsection (a-5) without also considering all such actions in the light of all relevant information available to the State Board, including whether the permit is sought to substantially comply with a mandatory or voluntary plan of correction associated with any action described in this subsection (a-5).
(b) Persons shall be subject to fines as follows:
(1) A permit holder who fails to comply with the
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| requirements of maintaining a valid permit shall be fined an amount not to exceed 1% of the approved permit amount plus an additional 1% of the approved permit amount for each 30-day period, or fraction thereof, that the violation continues.
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|
(2) A permit holder who alters the scope of an
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| approved project or whose project costs exceed the allowable permit amount without first obtaining approval from the State Board shall be fined an amount not to exceed the sum of (i) the lesser of $25,000 or 2% of the approved permit amount and (ii) in those cases where the approved permit amount is exceeded by more than $1,000,000, an additional $20,000 for each $1,000,000, or fraction thereof, in excess of the approved permit amount.
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|
(2.5) A permit or exemption holder who fails to
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| comply with the post-permit and reporting requirements set forth in Sections 5 and 8.5 shall be fined an amount not to exceed $10,000 plus an additional $10,000 for each 30-day period, or fraction thereof, that the violation continues. The accrued fine is not waived by the permit or exemption holder submitting the required information and reports. Prior to any fine beginning to accrue, the Board shall notify, in writing, a permit or exemption holder of the due date for the post-permit and reporting requirements no later than 30 days before the due date for the requirements. The exemption letter shall serve as the notice for exemptions.
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|
(3) A person who acquires major medical equipment or
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| who establishes a category of service without first obtaining a permit or exemption, as the case may be, shall be fined an amount not to exceed $10,000 for each such acquisition or category of service established plus an additional $10,000 for each 30-day period, or fraction thereof, that the violation continues.
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|
(4) A person who constructs, modifies, establishes,
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| or changes ownership of a health care facility without first obtaining a permit or exemption shall be fined an amount not to exceed $25,000 plus an additional $25,000 for each 30-day period, or fraction thereof, that the violation continues.
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|
(5) A person who discontinues a health care facility
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| or a category of service without first obtaining a permit or exemption shall be fined an amount not to exceed $10,000 plus an additional $10,000 for each 30-day period, or fraction thereof, that the violation continues. For purposes of this subparagraph (5), facilities licensed under the Nursing Home Care Act, the ID/DD Community Care Act, or the MC/DD Act, with the exceptions of facilities operated by a county or Illinois Veterans Homes, are exempt from this permit requirement. However, facilities licensed under the Nursing Home Care Act, the ID/DD Community Care Act, or the MC/DD Act must comply with Section 3-423 of the Nursing Home Care Act, Section 3-423 of the ID/DD Community Care Act, or Section 3-423 of the MC/DD Act and must provide the Board and the Department of Human Services with 30 days' written notice of their intent to close. Facilities licensed under the ID/DD Community Care Act or the MC/DD Act also must provide the Board and the Department of Human Services with 30 days' written notice of their intent to reduce the number of beds for a facility.
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|
(6) A person subject to this Act who fails to provide
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| information requested by the State Board or Agency within 30 days of a formal written request shall be fined an amount not to exceed $1,000 plus an additional $1,000 for each 30-day period, or fraction thereof, that the information is not received by the State Board or Agency.
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|
(b-5) The State Board may accept in-kind services or donations instead of or in combination with the imposition of a fine. This authorization is limited to cases where the non-compliant individual or entity has waived the right to an administrative hearing or opportunity to appear before the Board regarding the non-compliant matter.
(c) Before imposing any fine authorized under this Section, the State Board
shall afford the person or permit holder, as the case may be, an appearance
before the State Board and an opportunity for a hearing before a hearing
officer appointed by the State Board. The hearing shall be conducted in
accordance with Section 10. Requests for an appearance before the State Board must be made within 30 days after receiving notice that a fine will be imposed.
(d) All fines collected under this Act shall be transmitted to the State
Treasurer, who shall deposit them into the Illinois Health Facilities Planning
Fund.
(e) Fines imposed under this Section shall continue to accrue until: (i) the date that the matter is referred by the State Board to the Board's legal counsel; or (ii) the date that the health care facility becomes compliant with the Act, whichever is earlier.
(Source: P.A. 99-114, eff. 7-23-15; 99-180, eff. 7-29-15; 99-527, eff. 1-1-17; 99-642, eff. 6-28-16; 100-681, eff. 8-3-18.)
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