Illinois General Assembly - Full Text of HB1322
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Full Text of HB1322  98th General Assembly


Rep. Jay Hoffman

Filed: 3/19/2014





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2    AMENDMENT NO. ______. Amend House Bill 1322 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Hospital Licensing Act is amended by
5changing Sections 5 and 6 and by adding Section 14.5 as
7    (210 ILCS 85/5)  (from Ch. 111 1/2, par. 146)
8    Sec. 5. (a) An application for a permit to establish a
9hospital shall be made to the Department upon forms provided by
10it. This application shall contain such information as the
11Department reasonably requires, which shall include
12affirmative evidence on which the Director may make the
13findings required under Section 6a of this Act.
14    (b) An application for a license to open, conduct, operate,
15and maintain a hospital shall be made to the Department upon
16forms provided by it, accompanied by a license fee of $55 per



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1bed, or such lesser amount as the Department may establish by
2administrative rule in consultation with the Department of
3Healthcare and Family Services to comply with the limitations
4on health care-related taxes imposed by 42 U.S.C. 1396b(w)
5that, if violated, would result in reductions to the amount of
6federal financial participation received by the State for
7Medicaid expenditures, and shall contain such information as
8the Department reasonably requires, which may include
9affirmative evidence of ability to comply with the provisions
10of this Act and the standards, rules, and regulations,
11promulgated by virtue thereof.
12    (c) All applications required under this Section shall be
13signed by the applicant and shall be verified. Applications on
14behalf of a corporation or association or a governmental unit
15or agency shall be made and verified by any two officers
17(Source: Laws 1965, p. 2350.)
18    (210 ILCS 85/6)  (from Ch. 111 1/2, par. 147)
19    Sec. 6. (a) Upon receipt of an application for a permit to
20establish a hospital the Director shall issue a permit if he
21finds (1) that the applicant is fit, willing, and able to
22provide a proper standard of hospital service for the community
23with particular regard to the qualification, background, and
24character of the applicant, (2) that the financial resources
25available to the applicant demonstrate an ability to construct,



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1maintain, and operate a hospital in accordance with the
2standards, rules, and regulations adopted pursuant to this Act,
3and (3) that safeguards are provided which assure hospital
4operation and maintenance consistent with the public interest
5having particular regard to safe, adequate, and efficient
6hospital facilities and services.
7    The Director may request the cooperation of county and
8multiple-county health departments, municipal boards of
9health, and other governmental and non-governmental agencies
10in obtaining information and in conducting investigations
11relating to such applications.
12    A permit to establish a hospital shall be valid only for
13the premises and person named in the application for such
14permit and shall not be transferable or assignable.
15    In the event the Director issues a permit to establish a
16hospital the applicant shall thereafter submit plans and
17specifications to the Department in accordance with Section 8
18of this Act.
19    (b) Upon receipt of an application for license to open,
20conduct, operate, and maintain a hospital, the Director shall
21issue a license if he finds the applicant and the hospital
22facilities comply with standards, rules, and regulations
23promulgated under this Act. A license, unless sooner suspended
24or revoked, shall be renewable annually upon approval by the
25Department and payment of a license fee as established pursuant
26to Section 5 of this Act. Each license shall be issued only for



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1the premises and persons named in the application and shall not
2be transferable or assignable. Licenses shall be posted in a
3conspicuous place on the licensed premises. The Department may,
4either before or after the issuance of a license, request the
5cooperation of the State Fire Marshal, county and multiple
6county health departments, or municipal boards of health to
7make investigations to determine if the applicant or licensee
8is complying with the minimum standards prescribed by the
9Department. The report and recommendations of any such agency
10shall be in writing and shall state with particularity its
11findings with respect to compliance or noncompliance with such
12minimum standards, rules, and regulations.
13    The Director may issue a provisional license to any
14hospital which does not substantially comply with the
15provisions of this Act and the standards, rules, and
16regulations promulgated by virtue thereof provided that he
17finds that such hospital has undertaken changes and corrections
18which upon completion will render the hospital in substantial
19compliance with the provisions of this Act, and the standards,
20rules, and regulations adopted hereunder, and provided that the
21health and safety of the patients of the hospital will be
22protected during the period for which such provisional license
23is issued. The Director shall advise the licensee of the
24conditions under which such provisional license is issued,
25including the manner in which the hospital facilities fail to
26comply with the provisions of the Act, standards, rules, and



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1regulations, and the time within which the changes and
2corrections necessary for such hospital facilities to
3substantially comply with this Act, and the standards, rules,
4and regulations of the Department relating thereto shall be
6(Source: P.A. 80-56.)
7    (210 ILCS 85/14.5 new)
8    Sec. 14.5. Hospital Licensure Fund.
9    (a) There is created in the State treasury the Hospital
10Licensure Fund. The Fund is created for the purpose of
11providing funding for the administration of the licensure
12program and patient safety and quality initiatives for
13hospitals, including, without limitation, the implementation
14of the Illinois Adverse Health Care Events Reporting Law of
16    (b) The Fund shall consist of the following:
17        (1) fees collected pursuant to this Section;
18        (2) federal matching funds received by the State as a
19    result of expenditures made by the Department that are
20    attributable to moneys deposited in the Fund;
21        (3) interest earned on moneys deposited in the Fund;
22    and
23        (4) other moneys received for the Fund from any other
24    source, including interest earned thereon.
25    (c) Disbursements from the Fund shall be made only for:



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1        (1) initially, the implementation of the Illinois
2    Adverse Health Care Events Reporting Law of 2005;
3        (2) subsequently, programs, information, or
4    assistance, including measures to address public
5    complaints, designed to measurably improve quality and
6    patient safety; and
7        (3) the reimbursement of moneys collected by the
8    Department through error or mistake.
9    (d) The uses described in paragraph (2) of subsection (c)
10shall be developed in conjunction with a statewide organization
11representing a majority of hospitals.
12    Section 8. The Illinois Adverse Health Care Events
13Reporting Law of 2005 is amended by changing Sections 10-10 and
1410-15 as follows:
15    (410 ILCS 522/10-10)
16    Sec. 10-10. Definitions. As used in this Law, the following
17terms have the following meanings:
18    "Adverse health care event" means any event identified as a
19serious reportable event by the National Quality Forum and
20certain patient safety events identified by the Centers for
21Medicare and Medicaid Services as defined by rule on the
22effective date of this amendatory Act of the 98th General
23Assembly. The Department shall adopt, by rule, the list of
24adverse health care events. The rules in effect on May 1, 2013,



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1that define "adverse health care event" shall remain in effect
2until new rules are adopted in accordance with this amendatory
3Act of the 98th General Assembly. If the National Quality Forum
4thereafter revises its list of serious reportable events
5through addition, deletion, or modification, then the term
6"adverse health care event" for purposes of this Law shall be
7similarly revised, effective no sooner than 6 months after the
8revision by the originating organization. described in
9subsections (b) through (g) of Section 10-15.
10    "Department" means the Illinois Department of Public
12    "Health care facility" means a hospital maintained by the
13State or any department or agency thereof where such department
14or agency has authority under law to establish and enforce
15standards for the hospital under its management and control, a
16hospital maintained by any university or college established
17under the laws of this State and supported principally by
18public funds raised by taxation, a hospital licensed under the
19Hospital Licensing Act, a hospital organized under the
20University of Illinois Hospital Act, and an ambulatory surgical
21treatment center licensed under the Ambulatory Surgical
22Treatment Center Act.
23(Source: P.A. 94-242, eff. 7-18-05.)
24    (410 ILCS 522/10-15)
25    Sec. 10-15. Health care facility requirements to report,



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1analyze, and correct.
2    (a) Reports of adverse health care events required. Each
3health care facility shall report to the Department the
4occurrence of any of the adverse health care events described
5in subsections (b) through (g) no later than 30 days after
6discovery of the event. The report shall be filed in a format
7specified by the Department and shall identify the health care
8facility, but shall not include any information identifying or
9that tends to identify any of the health care professionals,
10employees, or patients involved.
11    (b) (Blank). Surgical events. Events reportable under this
12subsection are:
13        (1) Surgery performed on a wrong body part that is not
14    consistent with the documented informed consent for that
15    patient. Reportable events under this clause do not include
16    situations requiring prompt action that occur in the course
17    of surgery or situations whose urgency precludes obtaining
18    informed consent.
19        (2) Surgery performed on the wrong patient.
20        (3) The wrong surgical procedure performed on a patient
21    that is not consistent with the documented informed consent
22    for that patient. Reportable events under this clause do
23    not include situations requiring prompt action that occur
24    in the course of surgery or situations whose urgency
25    precludes obtaining informed consent.
26        (4) Retention of a foreign object in a patient after



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1    surgery or other procedure, excluding objects
2    intentionally implanted as part of a planned intervention
3    and objects present prior to surgery that are intentionally
4    retained.
5        (5) Death during or immediately after surgery of a
6    normal, healthy patient who has no organic, physiologic,
7    biochemical, or psychiatric disturbance and for whom the
8    pathologic processes for which the operation is to be
9    performed are localized and do not entail a systemic
10    disturbance.
11    (c) (Blank). Product or device events. Events reportable
12under this subsection are:
13        (1) Patient death or serious disability associated
14    with the use of contaminated drugs, devices, or biologics
15    provided by the health care facility when the contamination
16    is the result of generally detectable contaminants in
17    drugs, devices, or biologics regardless of the source of
18    the contamination or the product.
19        (2) Patient death or serious disability associated
20    with the use or function of a device in patient care in
21    which the device is used or functions other than as
22    intended. "Device" includes, but is not limited to,
23    catheters, drains, and other specialized tubes, infusion
24    pumps, and ventilators.
25        (3) Patient death or serious disability associated
26    with intravascular air embolism that occurs while being



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1    cared for in a health care facility, excluding deaths
2    associated with neurosurgical procedures known to present
3    a high risk of intravascular air embolism.
4    (d) (Blank). Patient protection events. Events reportable
5under this subsection are:
6        (1) An infant discharged to the wrong person.
7        (2) Patient death or serious disability associated
8    with patient disappearance for more than 4 hours, excluding
9    events involving adults who have decision-making capacity.
10        (3) Patient suicide or attempted suicide resulting in
11    serious disability while being cared for in a health care
12    facility due to patient actions after admission to the
13    health care facility, excluding deaths resulting from
14    self-inflicted injuries that were the reason for admission
15    to the health care facility.
16    (e) (Blank). Care management events. Events reportable
17under this subsection are:
18        (1) Patient death or serious disability associated
19    with a medication error, including, but not limited to,
20    errors involving the wrong drug, the wrong dose, the wrong
21    patient, the wrong time, the wrong rate, the wrong
22    preparation, or the wrong route of administration,
23    excluding reasonable differences in clinical judgment on
24    drug selection and dose.
25        (2) Patient death or serious disability associated
26    with a hemolytic reaction due to the administration of



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1    ABO-incompatible blood or blood products.
2        (3) Maternal death or serious disability associated
3    with labor or delivery in a low-risk pregnancy while being
4    cared for in a health care facility, excluding deaths from
5    pulmonary or amniotic fluid embolism, acute fatty liver of
6    pregnancy, or cardiomyopathy.
7        (4) Patient death or serious disability directly
8    related to hypoglycemia, the onset of which occurs while
9    the patient is being cared for in a health care facility
10    for a condition unrelated to hypoglycemia.
11    (f) (Blank). Environmental events. Events reportable under
12this subsection are:
13        (1) Patient death or serious disability associated
14    with an electric shock while being cared for in a health
15    care facility, excluding events involving planned
16    treatments such as electric countershock.
17        (2) Any incident in which a line designated for oxygen
18    or other gas to be delivered to a patient contains the
19    wrong gas or is contaminated by toxic substances.
20        (3) Patient death or serious disability associated
21    with a burn incurred from any source while being cared for
22    in a health care facility that is not consistent with the
23    documented informed consent for that patient. Reportable
24    events under this clause do not include situations
25    requiring prompt action that occur in the course of surgery
26    or situations whose urgency precludes obtaining informed



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1    consent.
2        (4) Patient death associated with a fall while being
3    cared for in a health care facility.
4        (5) Patient death or serious disability associated
5    with the use of restraints or bedrails while being cared
6    for in a health care facility.
7    (g) (Blank). Physical security events. Events reportable
8under this subsection are:
9        (1) Any instance of care ordered by or provided by
10    someone impersonating a physician, nurse, pharmacist, or
11    other licensed health care provider.
12        (2) Abduction of a patient of any age.
13        (3) Sexual assault on a patient within or on the
14    grounds of a health care facility.
15        (4) Death or significant injury of a patient or staff
16    member resulting from a physical assault that occurs within
17    or on the grounds of a health care facility.
18    (g-5) If the adverse health care events subject to this Law
19are revised as described in Section 10-10, then the Department
20shall provide notice to all affected health care facilities
21promptly upon the revision and shall inform affected health
22care facilities of the effective date of the revision for
23purposes of reporting under this Law.
24    (h) Definitions. As pertains to an adverse health care
25event used in this Section 10-15:
26     "Death" means patient death related to an adverse event



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1and not related solely to the natural course of the patient's
2illness or underlying condition. Events otherwise reportable
3under this Section 10-15 shall be reported even if the death
4might have otherwise occurred as the natural course of the
5patient's illness or underlying condition.
6    "Serious disability" means a physical or mental
7impairment, including loss of a body part, related to an
8adverse event and not related solely to the natural course of
9the patient's illness or underlying condition, that
10substantially limits one or more of the major life activities
11of an individual or a loss of bodily function, if the
12impairment or loss lasts more than 7 days prior to discharge or
13is still present at the time of discharge from an inpatient
14health care facility.
15(Source: P.A. 94-242, eff. 7-18-05.)
16    Section 10. The State Finance Act is amended by adding
17Section 5.826 as follows:
18    (30 ILCS 105/5.826 new)
19    Sec. 5.826. The Hospital Licensure Fund.
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".