Illinois General Assembly - Full Text of HB5968
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Full Text of HB5968  98th General Assembly




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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, 5.3, 5.4, 6.2, 8.5, 10, 11, 12,
612.2, 12.5, 13, and 15 as follows:
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8    (Section scheduled to be repealed on December 31, 2019)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) 1. An ambulatory surgical treatment center
13    required to be licensed pursuant to the Ambulatory Surgical
14    Treatment Center Act. ;
15        (2) 2. An institution, place, building, or agency
16    required to be licensed pursuant to the Hospital Licensing
17    Act. ;
18        (3) 3. 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) 3.5. Skilled and intermediate care facilities
7    licensed under the ID/DD Community Care Act. ;
8            (A) No permit or exemption is required for a
9        facility licensed under the ID/DD Community Care Act
10        prior to the reduction of the number of beds at a
11        facility. If there is a total reduction of beds at a
12        facility licensed under the ID/DD Community Care Act,
13        this is a discontinuation or closure of the facility.
14        If a facility licensed under the ID/DD Community Care
15        Act reduces the number of beds or discontinues the
16        facility, that facility must notify the Board as
17        provided in Section 14.1 of this Act.
18        (3.7) 3.7. Facilities licensed under the Specialized
19    Mental Health Rehabilitation Act. ;
20        (4) 4. Hospitals, nursing homes, ambulatory surgical
21    treatment centers, or kidney disease treatment centers
22    maintained by the State or any department or agency
23    thereof. ;
24        (5) 5. Kidney disease treatment centers, including a
25    free-standing hemodialysis unit required to be licensed
26    under the End Stage Renal Disease Facility Act. ;



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



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



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1        (7) The closure of an entity or a portion of an entity
2    licensed under the Nursing Home Care Act, the Specialized
3    Mental Health Rehabilitation Act, or the ID/DD Community
4    Care Act, with the exception of facilities operated by a
5    county or Illinois Veterans Homes, that elect to convert,
6    in whole or in part, to an assisted living or shared
7    housing establishment licensed under the Assisted Living
8    and Shared Housing Act.
9        (8) Any change of ownership of a healthcare facility
10    that is licensed under the Nursing Home Care Act, the
11    Specialized Mental Health Rehabilitation Act, or the ID/DD
12    Community Care Act, with the exception of facilities
13    operated by a county or Illinois Veterans Homes. Changes of
14    ownership of facilities licensed under the Nursing Home
15    Care Act must meet the requirements set forth in Sections
16    3-101 through 3-119 of the Nursing Home Care Act.
17    This Act shall not apply to the construction of any new
18facility or the renovation of any existing facility located on
19any campus facility as defined in Section 5-5.8b of the
20Illinois Public Aid Code, provided that the campus facility
21encompasses 30 or more contiguous acres and that the new or
22renovated facility is intended for use by a licensed
23residential facility.
24    No federally owned facility shall be subject to the
25provisions of this Act, nor facilities used solely for healing
26by prayer or spiritual means.



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1    No facility licensed under the Supportive Residences
2Licensing Act or the Assisted Living and Shared Housing Act
3shall be subject to the provisions of this Act.
4    No facility established and operating under the
5Alternative Health Care Delivery Act as a children's respite
6care center alternative health care model demonstration
7program or as an Alzheimer's Disease Management Center
8alternative health care model demonstration program shall be
9subject to the provisions of this Act.
10    A facility designated as a supportive living facility that
11is in good standing with the program established under Section
125-5.01a of the Illinois Public Aid Code shall not be subject to
13the provisions of this Act.
14    This Act does not apply to facilities granted waivers under
15Section 3-102.2 of the Nursing Home Care Act. However, if a
16demonstration project under that Act applies for a certificate
17of need to convert to a nursing facility, it shall meet the
18licensure and certificate of need requirements in effect as of
19the date of application.
20    This Act does not apply to a dialysis facility that
21provides only dialysis training, support, and related services
22to individuals with end stage renal disease who have elected to
23receive home dialysis. This Act does not apply to a dialysis
24unit located in a licensed nursing home that offers or provides
25dialysis-related services to residents with end stage renal
26disease who have elected to receive home dialysis within the



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1nursing home. The Board, however, may require these dialysis
2facilities and licensed nursing homes to report statistical
3information on a quarterly basis to the Board to be used by the
4Board to conduct analyses on the need for proposed kidney
5disease treatment centers.
6    This Act shall not apply to the closure of an entity or a
7portion of an entity licensed under the Nursing Home Care Act,
8the Specialized Mental Health Rehabilitation Act, or the ID/DD
9Community Care Act, with the exceptions of facilities operated
10by a county or Illinois Veterans Homes, that elects to convert,
11in whole or in part, to an assisted living or shared housing
12establishment licensed under the Assisted Living and Shared
13Housing Act.
14    This Act does not apply to any change of ownership of a
15healthcare facility that is licensed under the Nursing Home
16Care Act, the Specialized Mental Health Rehabilitation Act, or
17the ID/DD Community Care Act, with the exceptions of facilities
18operated by a county or Illinois Veterans Homes. Changes of
19ownership of facilities licensed under the Nursing Home Care
20Act must meet the requirements set forth in Sections 3-101
21through 3-119 of the Nursing Home Care Act.
22    With the exception of those health care facilities
23specifically included in this Section, nothing in this Act
24shall be intended to include facilities operated as a part of
25the practice of a physician or other licensed health care
26professional, whether practicing in his individual capacity or



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1within the legal structure of any partnership, medical or
2professional corporation, or unincorporated medical or
3professional group. Further, this Act shall not apply to
4physicians or other licensed health care professional's
5practices where such practices are carried out in a portion of
6a health care facility under contract with such health care
7facility by a physician or by other licensed health care
8professionals, whether practicing in his individual capacity
9or within the legal structure of any partnership, medical or
10professional corporation, or unincorporated medical or
11professional groups, unless the entity constructs, modifies,
12or establishes a health care facility as specifically defined
13in this Section. This Act shall apply to construction or
14modification and to establishment by such health care facility
15of such contracted portion which is subject to facility
16licensing requirements, irrespective of the party responsible
17for such action or attendant financial obligation.
18    No permit or exemption is required for a facility licensed
19under the ID/DD Community Care Act prior to the reduction of
20the number of beds at a facility. If there is a total reduction
21of beds at a facility licensed under the ID/DD Community Care
22Act, this is a discontinuation or closure of the facility.
23However, if a facility licensed under the ID/DD Community Care
24Act reduces the number of beds or discontinues the facility,
25that facility must notify the Board as provided in Section 14.1
26of this Act.



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1    "Person" means any one or more natural persons, legal
2entities, governmental bodies other than federal, or any
3combination thereof.
4    "Consumer" means any person other than a person (a) whose
5major occupation currently involves or whose official capacity
6within the last 12 months has involved the providing,
7administering or financing of any type of health care facility,
8(b) who is engaged in health research or the teaching of
9health, (c) who has a material financial interest in any
10activity which involves the providing, administering or
11financing of any type of health care facility, or (d) who is or
12ever has been a member of the immediate family of the person
13defined by (a), (b), or (c).
14    "State Board" or "Board" means the Health Facilities and
15Services Review Board.
16    "Construction or modification" means the establishment,
17erection, building, alteration, reconstruction, modernization,
18improvement, extension, discontinuation, change of ownership,
19of or by a health care facility, or the purchase or acquisition
20by or through a health care facility of equipment or service
21for diagnostic or therapeutic purposes or for facility
22administration or operation, or any capital expenditure made by
23or on behalf of a health care facility which exceeds the
24capital expenditure minimum; however, any capital expenditure
25made by or on behalf of a health care facility for (i) the
26construction or modification of a facility licensed under the



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1Assisted Living and Shared Housing Act or (ii) a conversion
2project undertaken in accordance with Section 30 of the Older
3Adult Services Act shall be excluded from any obligations under
4this Act.
5    "Establish" means the construction of a health care
6facility or the replacement of an existing facility on another
7site or the initiation of a category of service.
8    "Major medical equipment" means medical equipment which is
9used for the provision of medical and other health services and
10which costs in excess of the capital expenditure minimum,
11except that such term does not include medical equipment
12acquired by or on behalf of a clinical laboratory to provide
13clinical laboratory services if the clinical laboratory is
14independent of a physician's office and a hospital and it has
15been determined under Title XVIII of the Social Security Act to
16meet the requirements of paragraphs (10) and (11) of Section
171861(s) of such Act. In determining whether medical equipment
18has a value in excess of the capital expenditure minimum, the
19value of studies, surveys, designs, plans, working drawings,
20specifications, and other activities essential to the
21acquisition of such equipment shall be included.
22    "Capital Expenditure" means an expenditure: (A) made by or
23on behalf of a health care facility (as such a facility is
24defined in this Act); and (B) which under generally accepted
25accounting principles is not properly chargeable as an expense
26of operation and maintenance, or is made to obtain by lease or



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1comparable arrangement any facility or part thereof or any
2equipment for a facility or part; and which exceeds the capital
3expenditure minimum.
4    For the purpose of this paragraph, the cost of any studies,
5surveys, designs, plans, working drawings, specifications, and
6other activities essential to the acquisition, improvement,
7expansion, or replacement of any plant or equipment with
8respect to which an expenditure is made shall be included in
9determining if such expenditure exceeds the capital
10expenditures minimum. Unless otherwise interdependent, or
11submitted as one project by the applicant, components of
12construction or modification undertaken by means of a single
13construction contract or financed through the issuance of a
14single debt instrument shall not be grouped together as one
15project. Donations of equipment or facilities to a health care
16facility which if acquired directly by such facility would be
17subject to review under this Act shall be considered capital
18expenditures, and a transfer of equipment or facilities for
19less than fair market value shall be considered a capital
20expenditure for purposes of this Act if a transfer of the
21equipment or facilities at fair market value would be subject
22to review.
23    "Capital expenditure minimum" means $11,500,000 for
24projects by hospital applicants, $6,500,000 for applicants for
25projects related to skilled and intermediate care long-term
26care facilities licensed under the Nursing Home Care Act, and



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1$3,000,000 for projects by all other applicants, which shall be
2annually adjusted to reflect the increase in construction costs
3due to inflation, for major medical equipment and for all other
4capital expenditures.
5    "Non-clinical service area" means an area (i) for the
6benefit of the patients, visitors, staff, or employees of a
7health care facility and (ii) not directly related to the
8diagnosis, treatment, or rehabilitation of persons receiving
9services from the health care facility. "Non-clinical service
10areas" include, but are not limited to, chapels; gift shops;
11news stands; computer systems; tunnels, walkways, and
12elevators; telephone systems; projects to comply with life
13safety codes; educational facilities; student housing;
14patient, employee, staff, and visitor dining areas;
15administration and volunteer offices; modernization of
16structural components (such as roof replacement and masonry
17work); boiler repair or replacement; vehicle maintenance and
18storage facilities; parking facilities; mechanical systems for
19heating, ventilation, and air conditioning; loading docks; and
20repair or replacement of carpeting, tile, wall coverings,
21window coverings or treatments, or furniture. Solely for the
22purpose of this definition, "non-clinical service area" does
23not include health and fitness centers.
24    "Areawide" means a major area of the State delineated on a
25geographic, demographic, and functional basis for health
26planning and for health service and having within it one or



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1more local areas for health planning and health service. The
2term "region", as contrasted with the term "subregion", and the
3word "area" may be used synonymously with the term "areawide".
4    "Local" means a subarea of a delineated major area that on
5a geographic, demographic, and functional basis may be
6considered to be part of such major area. The term "subregion"
7may be used synonymously with the term "local".
8    "Physician" means a person licensed to practice in
9accordance with the Medical Practice Act of 1987, as amended.
10    "Licensed health care professional" means a person
11licensed to practice a health profession under pertinent
12licensing statutes of the State of Illinois.
13    "Director" means the Director of the Illinois Department of
14Public Health.
15    "Agency" means the Illinois Department of Public Health.
16    "Alternative health care model" means a facility or program
17authorized under the Alternative Health Care Delivery Act.
18    "Out-of-state facility" means a person that is both (i)
19licensed as a hospital or as an ambulatory surgery center under
20the laws of another state or that qualifies as a hospital or an
21ambulatory surgery center under regulations adopted pursuant
22to the Social Security Act and (ii) not licensed under the
23Ambulatory Surgical Treatment Center Act, the Hospital
24Licensing Act, or the Nursing Home Care Act. Affiliates of
25out-of-state facilities shall be considered out-of-state
26facilities. Affiliates of Illinois licensed health care



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1facilities 100% owned by an Illinois licensed health care
2facility, its parent, or Illinois physicians licensed to
3practice medicine in all its branches shall not be considered
4out-of-state facilities. Nothing in this definition shall be
5construed to include an office or any part of an office of a
6physician licensed to practice medicine in all its branches in
7Illinois that is not required to be licensed under the
8Ambulatory Surgical Treatment Center Act.
9    "Change of ownership of a health care facility" means a
10change in the person who has ownership or control of a health
11care facility's physical plant and capital assets. A change in
12ownership is indicated by the following transactions: sale,
13transfer, acquisition, lease, change of sponsorship, or other
14means of transferring control.
15    "Related person" means any person that: (i) is at least 50%
16owned, directly or indirectly, by either the health care
17facility or a person owning, directly or indirectly, at least
1850% of the health care facility; or (ii) owns, directly or
19indirectly, at least 50% of the health care facility.
20    "Charity care" means care provided by a health care
21facility for which the provider does not expect to receive
22payment from the patient or a third-party payer.
23    "Freestanding emergency center" means a facility subject
24to licensure under Section 32.5 of the Emergency Medical
25Services (EMS) Systems Act.
26    "Category of service" means a grouping by generic class of



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1various types or levels of support functions, equipment, care,
2or treatment provided to patients or residents, including, but
3not limited to, classes such as medical-surgical, pediatrics,
4or cardiac catheterization. A category of service may include
5subcategories or levels of care that identify a particular
6degree or type of care within the category of service. Nothing
7in this definition shall be construed to include the practice
8of a physician or other licensed health care professional while
9functioning in an office providing for the care, diagnosis, or
10treatment of patients. A category of service that is subject to
11the Board's jurisdiction must be designated in rules adopted by
12the Board.
13    "State Board Staff Report" means the document that sets
14forth the review and findings of the State Board staff, as
15prescribed by the State Board, regarding applications subject
16to Board jurisdiction.
17(Source: P.A. 97-38, eff. 6-28-11; 97-277, eff. 1-1-12; 97-813,
18eff. 7-13-12; 97-980, eff. 8-17-12; 98-414, eff. 1-1-14.)
19    (20 ILCS 3960/5.3)
20    (Section scheduled to be repealed on December 31, 2019)
21    Sec. 5.3. Annual report of capital expenditures. In
22addition to the State Board's authority to require reports, the
23State Board shall require each health care facility to submit
24an annual report of all capital expenditures in excess of
25$200,000 (which shall be annually adjusted to reflect the



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1increase in construction costs due to inflation) made by the
2health care facility during the most recent year. This annual
3report shall consist of a brief description of the capital
4expenditure, the amount and method of financing the capital
5expenditure, the certificate of need project number if the
6project was reviewed, and the total amount of capital
7expenditures obligated for the year. Data collected from health
8care facilities pursuant to this Section shall not duplicate or
9overlap other data collected by the Department and must be
10collected as part of the State Board's Department's Annual
11Questionnaires or supplements for health care facilities that
12report these data.
13(Source: P.A. 93-41, eff. 6-27-03.)
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
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    Illinois Department of Public Health regarding "Inpatients
12    and Outpatients Served by Payor Source" and "Inpatient and
13    Outpatient Net Revenue by Payor Source" as required by the
14    Board under Section 13 of this Act and published in the
15    Annual Hospital Profile.
16        (3) Any information the applicant believes is directly
17    relevant to safety net services, including information
18    regarding teaching, research, and any other service.
19    (e) The Board staff shall publish a notice, that an
20application accompanied by a Safety Net Impact Statement has
21been filed, in a newspaper having general circulation within
22the area affected by the application. If no newspaper has a
23general circulation within the county, the Board shall post the
24notice in 5 conspicuous places within the proposed area.
25    (f) Any person, community organization, provider, or
26health system or other entity wishing to comment upon or oppose



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1the application may file a Safety Net Impact Statement Response
2with the Board, which shall provide additional information
3concerning a project's impact on safety net services in the
5    (g) Applicants shall be provided an opportunity to submit a
6reply to any Safety Net Impact Statement Response.
7    (h) The Board staff report shall include a statement as to
8whether a Safety Net Impact Statement was filed by the
9applicant and whether it included information on charity care,
10the amount of care provided to Medicaid patients, and
11information on teaching, research, or any other service
12provided by the applicant directly relevant to safety net
13services. The report shall also indicate the names of the
14parties submitting responses and the number of responses and
15replies, if any, that were filed.
16(Source: P.A. 96-31, eff. 6-30-09.)
17    (20 ILCS 3960/6.2)
18    (Section scheduled to be repealed on December 31, 2019)
19    Sec. 6.2. Review of permits; State Board Staff Reports.
20Upon receipt of an application for a permit to establish,
21construct, or modify a health care facility, the State Board
22staff shall notify the applicant in writing within 10 working
23days either that the application is or is not complete. If the
24application is complete, the State Board staff shall notify the
25applicant of the beginning of the review process. If the



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1application is not complete, the Board staff shall explain
2within the 10-day period why the application is incomplete.
3    The State Board staff shall afford a reasonable amount of
4time as established by the State Board, but not to exceed 120
5days, for the review of the application. The 120-day period
6begins on the day the application is found to be substantially
7complete, as that term is defined by the State Board. During
8the 120-day period, the applicant may request an extension. An
9applicant may modify the application at any time before a final
10administrative decision has been made on the application.
11    The State Board shall prescribe and provide the forms upon
12which the review and findings of the State Board Staff Report
13staff shall be made. The State Board staff shall submit its
14State Board Staff Report review and findings to the State Board
15for its decision-making regarding approval or denial of the
17    When an application for a permit is initially reviewed by
18State Board staff, as provided in this Section, the State Board
19shall, upon request by the applicant or an interested person,
20afford an opportunity for a public hearing within a reasonable
21amount of time after receipt of the complete application, but
22not to exceed 90 days after receipt of the complete
23application. Notice of the hearing shall be made promptly, not
24less than 10 days before the hearing, by certified mail to the
25applicant and, not less than 10 days before the hearing, by
26publication in a newspaper of general circulation in the area



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1or community to be affected. The hearing shall be held in the
2area or community in which the proposed project is to be
3located and shall be for the purpose of allowing the applicant
4and any interested person to present public testimony
5concerning the approval, denial, renewal, or revocation of the
6permit. All interested persons attending the hearing shall be
7given a reasonable opportunity to present their views or
8arguments in writing or orally, and a record of all of the
9testimony shall accompany any findings of the State Board
10staff. The State Board shall adopt reasonable rules and
11regulations governing the procedure and conduct of the
13(Source: P.A. 97-1115, eff. 8-27-12.)
14    (20 ILCS 3960/8.5)
15    (Section scheduled to be repealed on December 31, 2019)
16    Sec. 8.5. Certificate of exemption for change of ownership
17of a health care facility; public notice and public hearing.
18    (a) Upon a finding by the Department of Public Health that
19an application for a change of ownership is complete, the State
20Board Department of Public Health shall publish a legal notice
21on 3 consecutive days in a newspaper of general circulation in
22the area or community to be affected and afford the public an
23opportunity to request a hearing. If the application is for a
24facility located in a Metropolitan Statistical Area, an
25additional legal notice shall be published in a newspaper of



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1limited circulation, if one exists, in the area in which the
2facility is located. If the newspaper of limited circulation is
3published on a daily basis, the additional legal notice shall
4be published on 3 consecutive days. The legal notice shall also
5be posted on the Health Facilities and Services Review Board's
6web site and sent to the State Representative and State Senator
7of the district in which the health care facility is located.
8An The Department of Public Health shall not find that an
9application for change of ownership of a hospital shall not be
10deemed is complete without a signed certification that for a
11period of 2 years after the change of ownership transaction is
12effective, the hospital will not adopt a charity care policy
13that is more restrictive than the policy in effect during the
14year prior to the transaction.
15    For the purposes of this subsection, "newspaper of limited
16circulation" means a newspaper intended to serve a particular
17or defined population of a specific geographic area within a
18Metropolitan Statistical Area such as a municipality, town,
19village, township, or community area, but does not include
20publications of professional and trade associations.
21    (b) If a public hearing is requested, it shall be held at
22least 15 days but no more than 30 days after the date of
23publication of the legal notice in the community in which the
24facility is located. The hearing shall be held in a place of
25reasonable size and accessibility and a full and complete
26written transcript of the proceedings shall be made. The



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1applicant shall provide a summary of the proposed change of
2ownership for distribution at the public hearing.
3(Source: P.A. 96-31, eff. 6-30-09.)
4    (20 ILCS 3960/10)  (from Ch. 111 1/2, par. 1160)
5    (Section scheduled to be repealed on December 31, 2019)
6    Sec. 10. Presenting information relevant to the approval of
7a permit or certificate or in opposition to the denial of the
8application; notice of outcome and review proceedings. When a
9motion by the State Board, to approve an application for a
10permit or a certificate of recognition, fails to pass, or when
11a motion to deny an application for a permit or a certificate
12of recognition is passed, the applicant or the holder of the
13permit, as the case may be, and such other parties as the State
14Board permits, will be given an opportunity to appear before
15the State Board and present such information as may be relevant
16to the approval of a permit or certificate or in opposition to
17the denial of the application.
18    Subsequent to an appearance by the applicant before the
19State Board or default of such opportunity to appear, a motion
20by the State Board to approve an application for a permit or a
21certificate of recognition which fails to pass or a motion to
22deny an application for a permit or a certificate of
23recognition which passes shall be considered denial of the
24application for a permit or certificate of recognition, as the
25case may be. Such action of denial or an action by the State



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1Board to revoke a permit or a certificate of recognition shall
2be communicated to the applicant or holder of the permit or
3certificate of recognition. Such person or organization shall
4be afforded an opportunity for a hearing before an
5administrative law judge, who is appointed by the Chairman of
6the State Board. A written notice of a request for such hearing
7shall be served upon the Chairman of the State Board within 30
8days following notification of the decision of the State Board.
9The administrative law judge shall take actions necessary to
10ensure that the hearing is completed within a reasonable period
11of time, but not to exceed 120 days, except for delays or
12continuances agreed to by the person requesting the hearing.
13Following its consideration of the report of the hearing, or
14upon default of the party to the hearing, the State Board shall
15make its final determination, specifying its findings and
16conclusions within 90 days of receiving the written report of
17the hearing. A copy of such determination shall be sent by
18certified mail or served personally upon the party.
19    A full and complete record shall be kept of all
20proceedings, including the notice of hearing, complaint, and
21all other documents in the nature of pleadings, written motions
22filed in the proceedings, and the report and orders of the
23State Board or hearing officer. All testimony shall be reported
24but need not be transcribed unless the decision is appealed in
25accordance with the Administrative Review Law, as now or
26hereafter amended. A copy or copies of the transcript may be



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1obtained by any interested party on payment of the cost of
2preparing such copy or copies.
3    The State Board or hearing officer shall upon its own or
4his motion, or on the written request of any party to the
5proceeding who has, in the State Board's or hearing officer's
6opinion, demonstrated the relevancy of such request to the
7outcome of the proceedings, issue subpoenas requiring the
8attendance and the giving of testimony by witnesses, and
9subpoenas duces tecum requiring the production of books,
10papers, records, or memoranda. The fees of witnesses for
11attendance and travel shall be the same as the fees of
12witnesses before the circuit court of this State.
13    When the witness is subpoenaed at the instance of the State
14Board, or its hearing officer, such fees shall be paid in the
15same manner as other expenses of the Board Agency, and when the
16witness is subpoenaed at the instance of any other party to any
17such proceeding the State Board may, in accordance with its the
18rules of the Agency, require that the cost of service of the
19subpoena or subpoena duces tecum and the fee of the witness be
20borne by the party at whose instance the witness is summoned.
21In such case, the State Board in its discretion, may require a
22deposit to cover the cost of such service and witness fees. A
23subpoena or subpoena duces tecum so issued shall be served in
24the same manner as a subpoena issued out of a court.
25    Any circuit court of this State upon the application of the
26State Board or upon the application of any other party to the



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1proceeding, may, in its discretion, compel the attendance of
2witnesses, the production of books, papers, records, or
3memoranda and the giving of testimony before it or its hearing
4officer conducting an investigation or holding a hearing
5authorized by this Act, by an attachment for contempt, or
6otherwise, in the same manner as production of evidence may be
7compelled before the court.
8(Source: P.A. 97-1115, eff. 8-27-12.)
9    (20 ILCS 3960/11)  (from Ch. 111 1/2, par. 1161)
10    (Section scheduled to be repealed on December 31, 2019)
11    Sec. 11. Any person who is adversely affected by a final
12decision of the State Board may have such decision judicially
13reviewed. The provisions of the Administrative Review Law, as
14now or hereafter amended, and the rules adopted pursuant
15thereto shall apply to and govern all proceedings for the
16judicial review of final administrative decisions of the State
17Board. The term "administrative decisions" is as defined in
18Section 3-101 of the Code of Civil Procedure. In order to
19comply with subsection (b) of Section 3-108 of the
20Administrative Review Law of the Code of Civil Procedure, the
21State Board shall transcribe each State Board meeting using a
22certified court reporter. The transcript shall contain the
23record of the findings and decisions of the State Board.
24(Source: P.A. 82-1057.)



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1    (20 ILCS 3960/12)  (from Ch. 111 1/2, par. 1162)
2    (Section scheduled to be repealed on December 31, 2019)
3    Sec. 12. Powers and duties of State Board. For purposes of
4this Act, the State Board shall exercise the following powers
5and duties:
6    (1) Prescribe rules, regulations, standards, criteria,
7procedures or reviews which may vary according to the purpose
8for which a particular review is being conducted or the type of
9project reviewed and which are required to carry out the
10provisions and purposes of this Act. Policies and procedures of
11the State Board shall take into consideration the priorities
12and needs of medically underserved areas and other health care
13services identified through the comprehensive health planning
14process, giving special consideration to the impact of projects
15on access to safety net services.
16    (2) Adopt procedures for public notice and hearing on all
17proposed rules, regulations, standards, criteria, and plans
18required to carry out the provisions of this Act.
19    (3) (Blank).
20    (4) Develop criteria and standards for health care
21facilities planning, conduct statewide inventories of health
22care facilities, maintain an updated inventory on the Board's
23web site reflecting the most recent bed and service changes and
24updated need determinations when new census data become
25available or new need formulae are adopted, and develop health
26care facility plans which shall be utilized in the review of



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1applications for permit under this Act. Such health facility
2plans shall be coordinated by the Board with pertinent State
3Plans. Inventories pursuant to this Section of skilled or
4intermediate care facilities licensed under the Nursing Home
5Care Act, skilled or intermediate care facilities licensed
6under the ID/DD Community Care Act, facilities licensed under
7the Specialized Mental Health Rehabilitation Act, or nursing
8homes licensed under the Hospital Licensing Act shall be
9conducted on an annual basis no later than July 1 of each year
10and shall include among the information requested a list of all
11services provided by a facility to its residents and to the
12community at large and differentiate between active and
13inactive beds.
14    In developing health care facility plans, the State Board
15shall consider, but shall not be limited to, the following:
16        (a) The size, composition and growth of the population
17    of the area to be served;
18        (b) The number of existing and planned facilities
19    offering similar programs;
20        (c) The extent of utilization of existing facilities;
21        (d) The availability of facilities which may serve as
22    alternatives or substitutes;
23        (e) The availability of personnel necessary to the
24    operation of the facility;
25        (f) Multi-institutional planning and the establishment
26    of multi-institutional systems where feasible;



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1        (g) The financial and economic feasibility of proposed
2    construction or modification; and
3        (h) In the case of health care facilities established
4    by a religious body or denomination, the needs of the
5    members of such religious body or denomination may be
6    considered to be public need.
7    The health care facility plans which are developed and
8adopted in accordance with this Section shall form the basis
9for the plan of the State to deal most effectively with
10statewide health needs in regard to health care facilities.
11    (5) Coordinate with the Center for Comprehensive Health
12Planning and other state agencies having responsibilities
13affecting health care facilities, including those of licensure
14and cost reporting. Beginning no later than January 1, 2013,
15the Department of Public Health shall produce a written annual
16report to the Governor and the General Assembly regarding the
17development of the Center for Comprehensive Health Planning.
18The Chairman of the State Board and the State Board
19Administrator shall also receive a copy of the annual report.
20    (6) Solicit, accept, hold and administer on behalf of the
21State any grants or bequests of money, securities or property
22for use by the State Board or Center for Comprehensive Health
23Planning in the administration of this Act; and enter into
24contracts consistent with the appropriations for purposes
25enumerated in this Act.
26    (7) The State Board shall prescribe procedures for review,



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1standards, and criteria which shall be utilized to make
2periodic reviews and determinations of the appropriateness of
3any existing health services being rendered by health care
4facilities subject to the Act. The State Board shall consider
5recommendations of the Board in making its determinations.
6    (8) Prescribe, in consultation with the Center for
7Comprehensive Health Planning, rules, regulations, standards,
8and criteria for the conduct of an expeditious review of
9applications for permits for projects of construction or
10modification of a health care facility, which projects are
11classified as emergency, substantive, or non-substantive in
13    Six months after June 30, 2009 (the effective date of
14Public Act 96-31), substantive projects shall include no more
15than the following:
16        (a) Projects to construct (1) a new or replacement
17    facility located on a new site or (2) a replacement
18    facility located on the same site as the original facility
19    and the cost of the replacement facility exceeds the
20    capital expenditure minimum, which shall be reviewed by the
21    Board within 120 days;
22        (b) Projects proposing a (1) new service within an
23    existing healthcare facility or (2) discontinuation of a
24    service within an existing healthcare facility, which
25    shall be reviewed by the Board within 60 days; or
26        (c) Projects proposing a change in the bed capacity of



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1    a health care facility by an increase in the total number
2    of beds or by a redistribution of beds among various
3    categories of service or by a relocation of beds from one
4    physical facility or site to another by more than 20 beds
5    or more than 10% of total bed capacity, as defined by the
6    State Board, whichever is less, over a 2-year period.
7    The Chairman may approve applications for exemption that
8meet the criteria set forth in rules or refer them to the full
9Board. The Chairman may approve any unopposed application that
10meets all of the review criteria or refer them to the full
12    Such rules shall not abridge the right of the Center for
13Comprehensive Health Planning to make recommendations on the
14classification and approval of projects, nor shall such rules
15prevent the conduct of a public hearing upon the timely request
16of an interested party. Such reviews shall not exceed 60 days
17from the date the application is declared to be complete.
18    (9) Prescribe rules, regulations, standards, and criteria
19pertaining to the granting of permits for construction and
20modifications which are emergent in nature and must be
21undertaken immediately to prevent or correct structural
22deficiencies or hazardous conditions that may harm or injure
23persons using the facility, as defined in the rules and
24regulations of the State Board. This procedure is exempt from
25public hearing requirements of this Act.
26    (10) Prescribe rules, regulations, standards and criteria



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1for the conduct of an expeditious review, not exceeding 60
2days, of applications for permits for projects to construct or
3modify health care facilities which are needed for the care and
4treatment of persons who have acquired immunodeficiency
5syndrome (AIDS) or related conditions.
6    (11) Issue written decisions upon request of the applicant
7or an adversely affected party to the Board. Requests for a
8written decision shall be made within 15 days after the Board
9meeting in which a final decision has been made. A "final
10decision" for purposes of this Act is the decision to approve
11or deny an application, or take other actions permitted under
12this Act, at the time and date of the meeting that such action
13is scheduled by the Board. State Board members shall provide
14their rationale when voting on an item before the State Board
15at a State Board meeting in order to comply with subsection (b)
16of Section 3-108 of the Administrative Review Law of the Code
17of Civil Procedure. The transcript of the State Board meeting
18shall be incorporated into the Board's final decision. The
19staff of the Board shall prepare a written copy of the final
20decision and the Board shall approve a final copy for inclusion
21in the formal record. The Board shall consider, for approval,
22the written draft of the final decision no later than the next
23scheduled Board meeting. The written decision shall identify
24the applicable criteria and factors listed in this Act and the
25Board's regulations that were taken into consideration by the
26Board when coming to a final decision. If the Board denies or



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1fails to approve an application for permit or exemption, the
2Board shall include in the final decision a detailed
3explanation as to why the application was denied and identify
4what specific criteria or standards the applicant did not
6    (12) Require at least one of its members to participate in
7any public hearing, after the appointment of a majority of the
8members to the Board.
9    (13) Provide a mechanism for the public to comment on, and
10request changes to, draft rules and standards.
11    (14) Implement public information campaigns to regularly
12inform the general public about the opportunity for public
13hearings and public hearing procedures.
14    (15) Establish a separate set of rules and guidelines for
15long-term care that recognizes that nursing homes are a
16different business line and service model from other regulated
17facilities. An open and transparent process shall be developed
18that considers the following: how skilled nursing fits in the
19continuum of care with other care providers, modernization of
20nursing homes, establishment of more private rooms,
21development of alternative services, and current trends in
22long-term care services. The Chairman of the Board shall
23appoint a permanent Health Services Review Board Long-term Care
24Facility Advisory Subcommittee that shall develop and
25recommend to the Board the rules to be established by the Board
26under this paragraph (15). The Subcommittee shall also provide



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1continuous review and commentary on policies and procedures
2relative to long-term care and the review of related projects.
3In consultation with other experts from the health field of
4long-term care, the Board and the Subcommittee shall study new
5approaches to the current bed need formula and Health Service
6Area boundaries to encourage flexibility and innovation in
7design models reflective of the changing long-term care
8marketplace and consumer preferences. The Subcommittee shall
9evaluate, and make recommendations to the State Board
10regarding, the buying, selling, and exchange of beds between
11long-term care facilities within a specified geographic area or
12drive time. The Board shall file the proposed related
13administrative rules for the separate rules and guidelines for
14long-term care required by this paragraph (15) by no later than
15September 30, 2011. The Subcommittee shall be provided a
16reasonable and timely opportunity to review and comment on any
17review, revision, or updating of the criteria, standards,
18procedures, and rules used to evaluate project applications as
19provided under Section 12.3 of this Act.
20    (16) Prescribe and provide forms pertaining to the State
21Board Staff Report. A State Board Staff Report shall pertain to
22applications that include, but are not limited to, applications
23for permit or exemption, applications for permit renewal,
24applications for extension of the obligation period,
25applications requesting a declaratory ruling, or applications
26under the Health Care Worker Self Referral Act. State Board



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1Staff Reports shall compare applications to the relevant review
2criteria under the Board's rules.
3(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
4eff. 7-13-12; 97-1045, eff. 8-21-13; 97-1115, eff. 8-27-12;
598-414, eff. 1-1-14; 98-463, eff. 8-16-13.)
6    (20 ILCS 3960/12.2)
7    (Section scheduled to be repealed on December 31, 2019)
8    Sec. 12.2. Powers of the State Board staff. For purposes of
9this Act, the staff shall exercise the following powers and
11    (1) Review applications for permits and exemptions in
12accordance with the standards, criteria, and plans of need
13established by the State Board under this Act and certify its
14finding to the State Board.
15    (1.5) Post the following on the Board's web site: relevant
16(i) rules, (ii) standards, (iii) criteria, (iv) State norms,
17(v) references used by Board Agency staff in making
18determinations about whether application criteria are met, and
19(vi) notices of project-related filings, including notice of
20public comments related to the application.
21    (2) Charge and collect an amount determined by the State
22Board and the staff to be reasonable fees for the processing of
23applications by the State Board. The State Board shall set the
24amounts by rule. Application fees for continuing care
25retirement communities, and other health care models that



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1include regulated and unregulated components, shall apply only
2to those components subject to regulation under this Act. All
3fees and fines collected under the provisions of this Act shall
4be deposited into the Illinois Health Facilities Planning Fund
5to be used for the expenses of administering this Act.
6    (2.1) Publish the following reports on the State Board
8        (A) An annual accounting, aggregated by category and
9    with names of parties redacted, of fees, fines, and other
10    revenue collected as well as expenses incurred, in the
11    administration of this Act.
12        (B) An annual report, with names of the parties
13    redacted, that summarizes all settlement agreements
14    entered into with the State Board that resolve an alleged
15    instance of noncompliance with State Board requirements
16    under this Act.
17        (C) A monthly report that includes the status of
18    applications and recommendations regarding updates to the
19    standard, criteria, or the health plan as appropriate.
20        (D) Board reports showing the degree to which an
21    application conforms to the review standards, a summation
22    of relevant public testimony, and any additional
23    information that staff wants to communicate.
24    (3) Coordinate with other State agencies having
25responsibilities affecting health care facilities, including
26the Center for Comprehensive Health Planning and those of



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1licensure and cost reporting.
2(Source: P.A. 96-31, eff. 6-30-09.)
3    (20 ILCS 3960/12.5)
4    (Section scheduled to be repealed on December 31, 2019)
5    Sec. 12.5. Update existing bed inventory and associated bed
6need projections. While the Task Force on Health Planning
7Reform will make long-term recommendations related to the
8method and formula for calculating the bed inventory and
9associated bed need projections, there is a current need for
10the bed inventory to be updated prior to the issuance of the
11recommendations of the Task Force. Therefore, the State Board
12Agency shall immediately update the existing bed inventory and
13associated bed need projections required by Sections 12 and
1412.3 of this Act, using the most recently published historical
15utilization data, 5-year population projections, and an
16appropriate migration factor for the medical-surgical and
17pediatric category of service which shall be no less than 50%.
18The State Board Agency shall provide written documentation
19providing the methodology and rationale used to determine the
20appropriate migration factor.
21(Source: P.A. 97-1115, eff. 8-27-12.)
22    (20 ILCS 3960/13)  (from Ch. 111 1/2, par. 1163)
23    (Section scheduled to be repealed on December 31, 2019)
24    Sec. 13. Investigation of applications for permits and



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



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



HB5968 Enrolled- 40 -LRB098 18449 OMW 55659 b

1residents, and the community at large. Annual reports for
2facilities licensed under the ID/DD Community Care Act shall be
3different from the annual reports required of other health care
4facilities and shall be specific to those facilities licensed
5under the ID/DD Community Care Act. The Health Facilities and
6Services Review Board shall consult with associations
7representing facilities licensed under the ID/DD Community
8Care Act when developing the information requested in these
9annual reports. For health care facilities that contain long
10term care beds, the reports shall also include the number of
11staffed long term care beds, physical capacity for long term
12care beds at the facility, and long term care beds available
13for immediate occupancy. For purposes of this paragraph, "long
14term care beds" means beds (i) licensed under the Nursing Home
15Care Act, (ii) licensed under the ID/DD Community Care Act,
16(iii) licensed under the Hospital Licensing Act, or (iv)
17licensed under the Specialized Mental Health Rehabilitation
18Act and certified as skilled nursing or nursing facility beds
19under Medicaid or Medicare.
20(Source: P.A. 96-339, eff. 7-1-10; 97-38, eff. 6-28-11; 97-227,
21eff. 1-1-12; 97-813, eff. 7-13-12; 97-980, eff. 8-17-12.)
22    (20 ILCS 3960/15)  (from Ch. 111 1/2, par. 1165)
23    (Section scheduled to be repealed on December 31, 2019)
24    Sec. 15. Notwithstanding the existence or pursuit of any
25other remedy, the State Board or the Agency may, in the manner



HB5968 Enrolled- 41 -LRB098 18449 OMW 55659 b

1provided by law, upon the advice of the Attorney General who
2shall represent the State Board or the Agency in the
3proceedings, maintain an action in the name of the State for
4injunction or other process against any person or governmental
5unit to restrain or prevent the acquisition of major medical
6equipment, or the establishment, construction or modification
7of a health care facility without the required permit, or to
8restrain or prevent the occupancy or utilization of the
9equipment acquired or facility which was constructed or
10modified without the required permit.
11(Source: P.A. 89-276, eff. 8-10-95.)
12    Section 99. Effective date. This Act takes effect upon
13becoming law.



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2 Statutes amended in order of appearance
3    20 ILCS 3960/3from Ch. 111 1/2, par. 1153
4    20 ILCS 3960/5.3
5    20 ILCS 3960/5.4
6    20 ILCS 3960/6.2
7    20 ILCS 3960/8.5
8    20 ILCS 3960/10from Ch. 111 1/2, par. 1160
9    20 ILCS 3960/11from Ch. 111 1/2, par. 1161
10    20 ILCS 3960/12from Ch. 111 1/2, par. 1162
11    20 ILCS 3960/12.2
12    20 ILCS 3960/12.5
13    20 ILCS 3960/13from Ch. 111 1/2, par. 1163
14    20 ILCS 3960/15from Ch. 111 1/2, par. 1165