093_SB1064sam001











                                     LRB093 06804 AMC 14310 a

 1                    AMENDMENT TO SENATE BILL 1064

 2        AMENDMENT NO.     .  Amend Senate Bill 1064 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  1.  Short  title.  This Act may be cited as the
 5    Community Benefits Act.

 6        Section 5.  Applicability.  This Act does not apply to  a
 7    hospital operated by a unit of government, a hospital located
 8    outside  of  a  metropolitan  statistical area, or a hospital
 9    with 100 or fewer beds.  Hospitals that are owned or operated
10    by or affiliated with a health system shall be deemed  to  be
11    in  compliance with this Act if the health system has met the
12    requirements of this Act.

13        Section 10.  Definitions. As used in this Act:
14        "Charity care" means  care  provided  by  a  health  care
15    provider  for  which  the provider does not expect to receive
16    payment from the patient or a third party payer.
17        "Community benefits" means the  unreimbursed  cost  to  a
18    hospital or health system of providing charity care, language
19    assistant   services,  government-sponsored  indigent  health
20    care,    donations,    volunteer     services,     education,
21    government-sponsored    program   services,   research,   and
 
                            -2-      LRB093 06804 AMC 14310 a
 1    subsidized  health  services  and   collecting   bad   debts.
 2    "Community  benefits" does not include the cost of paying any
 3    taxes or other governmental assessments.
 4        "Government sponsored indigent  health  care"  means  the
 5    unreimbursed cost to a hospital or health system of Medicare,
 6    providing health care services to recipients of Medicaid, and
 7    other federal, State, or local indigent health care programs,
 8    eligibility for which is based on financial need.
 9        "Health  system" means an entity that owns or operates at
10    least one hospital.
11        "Nonprofit hospital" means a hospital that  is  organized
12    as    a    nonprofit    corporation,    including   religious
13    organizations, or a charitable trust under  Illinois  law  or
14    the laws of any other state or country.
15        "Subsidized   health   services"   means  those  services
16    provided by a hospital in response  to  community  needs  for
17    which  the  reimbursement is less that the hospital's cost of
18    providing the services  that  must  be  subsidized  by  other
19    hospital  or  nonprofit  supporting  entity  revenue sources.
20    "Subsidized health services" includes, but is not limited to,
21    emergency and trauma care, neonatal intensive care, community
22    health  clinics,  and  collaborative   efforts   with   local
23    government or private agencies to prevent illness and improve
24    wellness, such as immunization programs.

25        Section  15.  Organizational mission statement; community
26    benefits plan. A nonprofit hospital shall develop:
27             (1)  an  organizational   mission   statement   that
28        identifies  the  hospital's  commitment  to  serving  the
29        health care needs of the community; and
30             (2)  a   community   benefits  plan  defined  as  an
31        operational plan for serving the community's health  care
32        needs that:
33                  (A)  sets   out   goals   and   objectives  for
 
                            -3-      LRB093 06804 AMC 14310 a
 1             providing community benefits  that  include  charity
 2             care  and government sponsored indigent health care;
 3             and
 4                  (B)  identifies the populations and communities
 5             served by the hospital.

 6        Section 20. Annual report for community benefits plan.
 7        (a)  Each nonprofit  hospital  shall  prepare  an  annual
 8    report  of  the  community  benefits  plan.  The  report must
 9    include, in addition to the community benefits  plan  itself,
10    all of the following background information:
11             (1)  The hospital's mission statement.
12             (2)  A  disclosure  of  the health care needs of the
13        community  that  were  considered   in   developing   the
14        hospital's community benefits plan.
15             (3)  A   disclosure  of  the  amount  and  types  of
16        community benefits actually provided,  including  charity
17        care.  Charity  care must be reported separate from other
18        community  benefits.  In  reporting  charity  care,   the
19        hospital   must   report  the  actual  cost  of  services
20        provided, based on the total cost to charge ratio derived
21        from the hospital's Medicare  cost  report  (CMS  2552-96
22        Worksheet  C,  Part  1,  PPS  Inpatient  Ratios), not the
23        charges for the services.
24             (4)  Audited annual financial reports for  its  most
25        recently completed fiscal year.
26        (b)  Each nonprofit hospital shall annually file a report
27    of the community benefits plan with the Attorney General. The
28    report must be filed not later than the last day of the sixth
29    month   after  the  close  of  the  hospital's  fiscal  year,
30    beginning with the hospital fiscal year that ends in 2004.
31        (c)  Each nonprofit hospital shall  prepare  a  statement
32    that  notifies  the  public  that  the  annual  report of the
33    community benefits plan is:
 
                            -4-      LRB093 06804 AMC 14310 a
 1             (1)  public information;
 2             (2)  filed with the Attorney General; and
 3             (3)  available to the public  on  request  from  the
 4        Attorney General.
 5        This statement shall be made available to the public.
 6        (d)  The obligations of a hospital under this Act, except
 7    for  the  filing  of its audited financial report, shall take
 8    effect beginning with the hospital's fiscal year that  begins
 9    after  the effective date of this Act.  Within 60 days of the
10    effective date of this Act, a hospital shall file the audited
11    annual financial report that has been completed for its  most
12    recently completed fiscal year.  Thereafter, a hospital shall
13    include  its  audited  annual  financial  report for its most
14    recently completed fiscal year in its annual  report  of  its
15    community benefits plan.

16        Section  25.  Failure to file annual report. The Attorney
17    General may assess a late  filing  fee  against  a  nonprofit
18    hospital  that  fails  to  make  a  report  of  the community
19    benefits plan as required under this Act in an amount not  to
20    exceed  $100.   The Attorney General may grant extensions for
21    good cause. No penalty may be  assessed  against  a  hospital
22    under  this Section until 30 business days have elapsed after
23    written notification to the hospital of its failure to file a
24    report.

25        Section 30.  Other  rights  and  remedies  retained.  The
26    rights  and remedies provided for in this Act are in addition
27    to other statutory or common law rights or remedies available
28    to the State.

29        Section  40.  Home  rule.   A  home  rule  unit  may  not
30    regulate  hospitals  in  a  manner  inconsistent   with   the
31    provisions  of  this Act.  This Section is a limitation under
 
                            -5-      LRB093 06804 AMC 14310 a
 1    subsection (i) of Section 6 of Article VII  of  the  Illinois
 2    Constitution on the concurrent exercise by home rule units of
 3    powers and functions exercised by the State.

 4        Section  99.  Effective date.  This Act takes effect upon
 5    becoming law.".