Full Text of HB2222 103rd General Assembly
HB2222sam001 103RD GENERAL ASSEMBLY | Sen. Ann Gillespie Filed: 5/2/2023
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| 1 | | AMENDMENT TO HOUSE BILL 2222
| 2 | | AMENDMENT NO. ______. Amend House Bill 2222 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Health Facilities Planning Act is | 5 | | amended by changing Section 8.5 as follows: | 6 | | (20 ILCS 3960/8.5) | 7 | | (Section scheduled to be repealed on December 31, 2029) | 8 | | Sec. 8.5. Certificate of exemption for change of ownership | 9 | | of a health care facility; discontinuation of a category of | 10 | | service; public notice and public hearing. | 11 | | (a) Upon a finding that an application for a change of | 12 | | ownership is complete, the State Board shall publish a legal | 13 | | notice on 3 consecutive days in a newspaper of general | 14 | | circulation in the area or community to be affected and afford | 15 | | the public an opportunity to request a hearing. If the | 16 | | application is for a facility located in a Metropolitan |
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| 1 | | Statistical Area, an additional legal notice shall be | 2 | | published in a newspaper of limited circulation, if one | 3 | | exists, in the area in which the facility is located. If the | 4 | | newspaper of limited circulation is published on a daily | 5 | | basis, the additional legal notice shall be published on 3 | 6 | | consecutive days. The applicant shall pay the cost incurred by | 7 | | the Board in publishing the change of ownership notice in | 8 | | newspapers as required under this subsection. The legal notice | 9 | | shall also be posted on the Health Facilities and Services | 10 | | Review Board's web site and sent to the State Representative | 11 | | and State Senator of the district in which the health care | 12 | | facility is located and to the Office of the Attorney General . | 13 | | An application for change of ownership of a hospital shall not | 14 | | be deemed complete without a signed certification that for a | 15 | | period of 2 years after the change of ownership transaction is | 16 | | effective, the hospital will not adopt a charity care policy | 17 | | that is
more restrictive than the policy in effect during the | 18 | | year prior to the transaction. An application for a change of | 19 | | ownership need not contain signed transaction documents so | 20 | | long as it includes the following key terms of the | 21 | | transaction: names and background of the parties; structure of | 22 | | the transaction; the person who will be the licensed or | 23 | | certified entity after the transaction; the ownership or | 24 | | membership interests in such licensed or certified entity both | 25 | | prior to and after the transaction; fair market value of | 26 | | assets to be transferred; and the purchase price or other form |
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| 1 | | of consideration to be provided for those assets. The issuance | 2 | | of the certificate of exemption shall be contingent upon the | 3 | | applicant submitting a statement to the Board within 90 days | 4 | | after the closing date of the transaction, or such longer | 5 | | period as provided by the Board, certifying that the change of | 6 | | ownership has been completed in accordance with the key terms | 7 | | contained in the application. If such key terms of the | 8 | | transaction change, a new application shall be required. | 9 | | Where a change of ownership is among related persons, and | 10 | | there are no other changes being proposed at the health care | 11 | | facility that would otherwise require a permit or exemption | 12 | | under this Act, the applicant shall submit an application | 13 | | consisting of a standard notice in a form set forth by the | 14 | | Board briefly explaining the reasons for the proposed change | 15 | | of ownership. Once such an application is submitted to the | 16 | | Board and reviewed by the Board staff, the Board Chair shall | 17 | | take action on an application for an exemption for a change of | 18 | | ownership among related persons within 45 days after the | 19 | | application has been deemed complete, provided the application | 20 | | meets the applicable standards under this Section. If the | 21 | | Board Chair has a conflict of interest or for other good cause, | 22 | | the Chair may request review by the Board. Notwithstanding any | 23 | | other provision of this Act, for purposes of this Section, a | 24 | | change of ownership among related persons means a transaction | 25 | | where the parties to the transaction are under common control | 26 | | or ownership before and after the transaction is completed. |
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| 1 | | Nothing in this Act shall be construed as authorizing the | 2 | | Board to impose any conditions, obligations, or limitations, | 3 | | other than those required by this Section, with respect to the | 4 | | issuance of an exemption for a change of ownership, including, | 5 | | but not limited to, the time period before which a subsequent | 6 | | change of ownership of the health care facility could be | 7 | | sought, or the commitment to continue to offer for a specified | 8 | | time period any services currently offered by the health care | 9 | | facility. | 10 | | The changes made by this amendatory Act of the 103rd | 11 | | General Assembly are inoperative on and after January 1, 2027. | 12 | | (a-3) (Blank). | 13 | | (a-5) Upon a finding that an application to discontinue a | 14 | | category of service is complete and provides the requested | 15 | | information, as specified by the State Board, an exemption | 16 | | shall be issued. No later than 30 days after the issuance of | 17 | | the exemption, the health care facility must give written | 18 | | notice of the discontinuation of the category of service to | 19 | | the State Senator and State Representative serving the | 20 | | legislative district in which the health care facility is | 21 | | located. No later than 90 days after a discontinuation of a | 22 | | category of service, the applicant must submit a statement to | 23 | | the State Board certifying that the discontinuation is | 24 | | complete. | 25 | | (b) If a public hearing is requested, it shall be held at | 26 | | least 15 days but no more than 30 days after the date of |
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| 1 | | publication of the legal notice in the community in which the | 2 | | facility is located. The hearing shall be held in the affected | 3 | | area or community in a place of reasonable size and | 4 | | accessibility and a full and complete written transcript of | 5 | | the proceedings shall be made. All interested persons | 6 | | attending the hearing shall be given a reasonable opportunity | 7 | | to present their positions in writing or orally. The applicant | 8 | | shall provide a summary or describe the proposed change of | 9 | | ownership at the public hearing.
| 10 | | (c) For the purposes of this Section "newspaper of limited | 11 | | circulation" means a newspaper intended to serve a particular | 12 | | or defined population of a specific geographic area within a | 13 | | Metropolitan Statistical Area such as a municipality, town, | 14 | | village, township, or community area, but does not include | 15 | | publications of professional and trade associations. | 16 | | (d) The changes made to this Section by this amendatory | 17 | | Act of the 101st General Assembly shall apply to all | 18 | | applications submitted after the effective date of this | 19 | | amendatory Act of the 101st General Assembly. | 20 | | (Source: P.A. 100-201, eff. 8-18-17; 101-83, eff. 7-15-19.) | 21 | | Section 10. The State Finance Act is amended by adding | 22 | | Section 5.990 as follows: | 23 | | (30 ILCS 105/5.990 new) | 24 | | Sec. 5.990. The Antitrust Enforcement Fund. This Section |
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| 1 | | is repealed on January 1, 2027. | 2 | | Section 15. The Illinois Antitrust Act is amended by | 3 | | changing Section 7.2 and by adding Sections 7.2a and 13 as | 4 | | follows:
| 5 | | (740 ILCS 10/7.2) (from Ch. 38, par. 60-7.2)
| 6 | | Sec. 7.2. (1) Whenever it appears to the Attorney General | 7 | | that any person has
engaged in, is engaging in, or is about to | 8 | | engage in any act or practice
prohibited by this Act, or that | 9 | | any person has assisted or participated
in any agreement or | 10 | | combination of the nature described herein, he may,
in his | 11 | | discretion, conduct an investigation as he deems necessary in
| 12 | | connection with the matter and has the authority prior to the
| 13 | | commencement of any civil or criminal action as provided for | 14 | | in the Act
to subpoena witnesses, and pursuant to a subpoena | 15 | | (i) compel their
attendance for the purpose of examining them | 16 | | under oath, (ii) require the
production of any books, | 17 | | documents, records, writings or tangible things
hereafter | 18 | | referred to as "documentary material" which
the Attorney | 19 | | General deems relevant or material to his investigation,
for | 20 | | inspection, reproducing or copying under such terms and | 21 | | conditions
as hereafter set forth, (iii) require written | 22 | | answers under oath to written
interrogatories, or (iv) require | 23 | | compliance with a combination of the
foregoing. Any subpoena | 24 | | issued by the Attorney General
shall contain the following |
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| 1 | | information:
| 2 | | (a) The statute and section thereof, the alleged | 3 | | violation of which
is under investigation and the general | 4 | | subject matter of the
investigation.
| 5 | | (b) The date and place at which time the person is | 6 | | required to
appear or produce documentary material in his | 7 | | possession, custody or
control or submit answers to | 8 | | interrogatories in the office of the Attorney
General | 9 | | located in Springfield or
Chicago. Said date shall not be | 10 | | less than 10 days from date of service
of the subpoena.
| 11 | | (c) Where documentary material is required to be | 12 | | produced, the same
shall be described by class so as to | 13 | | clearly indicate the material
demanded.
| 14 | | The Attorney General is hereby authorized, and may so | 15 | | elect, to
require the production, pursuant to this section, of | 16 | | documentary
material or interrogatory answers prior to the | 17 | | taking of any testimony of
the person subpoenaed. Said | 18 | | documentary material shall be made available for
inspection | 19 | | and copying during normal business hours at the principal
| 20 | | place of business of the person served, or at such other time | 21 | | and place,
as may be agreed upon by the person served and the | 22 | | Attorney General.
When documentary material is demanded by | 23 | | subpoena, said subpoena shall
not:
| 24 | | (i) contain any requirement which would be | 25 | | unreasonable or improper
if contained in a subpoena duces | 26 | | tecum issued by a court of this State;
or
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| 1 | | (ii) require the disclosure of any documentary | 2 | | material which would
be privileged, or which for any other | 3 | | reason would not be required by a
subpoena duces tecum | 4 | | issued by a court of this State.
| 5 | | (2) The production of documentary material in response to | 6 | | a subpoena served
pursuant to this Section shall be made under | 7 | | a sworn certificate, in such
form as the subpoena designates, | 8 | | by the person, if a natural person, to
whom the demand is | 9 | | directed or, if not a natural person, by a person or
persons | 10 | | having knowledge of the facts and circumstances relating to | 11 | | such
production, to the effect that all of the documentary | 12 | | material required
by the demand and in the possession, | 13 | | custody, or control of the person to
whom the demand is | 14 | | directed has been produced and made available to the
| 15 | | custodian. Answers to interrogatories shall be accompanied by | 16 | | a statement
under oath attesting to the accuracy of the | 17 | | answers.
| 18 | | While in the possession of the Attorney General and under | 19 | | such reasonable
terms and conditions as the Attorney General | 20 | | shall prescribe: (A) documentary
material shall be available | 21 | | for examination by the person who produced such
material or by | 22 | | any duly authorized representative of such person, (B)
| 23 | | transcript of oral testimony shall be available for | 24 | | examination by the person
who produced such testimony, or his | 25 | | or her counsel and (C) answers to
interrogatories shall be | 26 | | available for examination by the person who swore to
their |
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| 1 | | accuracy.
| 2 | | Except as otherwise provided in this Section, no | 3 | | documentary material,
transcripts of oral testimony, or | 4 | | answers to interrogatories, or copies thereof, in the | 5 | | possession of the
Attorney General shall be available for | 6 | | examination by any individual other
than an authorized | 7 | | employee of the Attorney General or other law enforcement
| 8 | | officials, federal, State, or local, without the consent of | 9 | | the person who produced
such material, transcripts, or | 10 | | interrogatory answers. Such documentary material, transcripts | 11 | | of oral testimony, or answers to interrogatories, or copies | 12 | | thereof may be used by the Attorney General in any | 13 | | administrative or judicial action or proceeding.
| 14 | | For purposes of this Section, all documentary materials, | 15 | | transcripts of oral testimony, or answers to interrogatories | 16 | | obtained by the Attorney General from other law enforcement | 17 | | officials , information voluntarily produced to the Attorney | 18 | | General for purposes of any investigation conducted under | 19 | | subsection (1), or information provided to the Attorney | 20 | | General pursuant to the notice requirement of Section 7.2a | 21 | | shall be treated as if produced pursuant to a subpoena served | 22 | | pursuant to this Section for purposes of maintaining the | 23 | | confidentiality of such information. | 24 | | The changes made by this amendatory Act of the 103rd | 25 | | General Assembly are inoperative on and after January 1, 2027. | 26 | | (3) No person shall, with intent to avoid, evade, prevent, |
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| 1 | | or obstruct
compliance in whole or in part by any person with | 2 | | any duly served subpoena
of the Attorney General under this | 3 | | Act, knowingly remove from any place,
conceal, withhold, | 4 | | destroy, mutilate, alter, or by any other means falsify
any | 5 | | documentary material that is the subject of such subpoena. A | 6 | | violation
of this subsection is a Class A misdemeanor. The | 7 | | Attorney General, with
such assistance as he may from time to | 8 | | time require of the State's Attorneys
in the several counties, | 9 | | shall investigate suspected violations of this
subsection and | 10 | | shall commence and try all prosecutions under this subsection.
| 11 | | (Source: P.A. 96-751, eff. 1-1-10; 96-1000, eff. 7-2-10.)
| 12 | | (740 ILCS 10/7.2a new) | 13 | | Sec. 7.2a. Notification to the Attorney General. | 14 | | (a) As used in this Section: | 15 | | "Acquisition" means an agreement, arrangement, or activity
| 16 | | the consummation of which results in a person acquiring
| 17 | | directly or indirectly the control of another person. | 18 | | "Acquisition"
includes the acquisition of voting securities | 19 | | and noncorporate
interests, such as assets, capital stock, | 20 | | membership
interests, or equity interests. | 21 | | "Contracting affiliation" means the formation of a | 22 | | relationship between 2 or more entities that permits the | 23 | | entities to negotiate jointly with health carriers or | 24 | | third-party administrators over rates for professional medical | 25 | | services, or for one entity to negotiate on behalf of the other |
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| 1 | | entity with health carriers or third-party administrators over | 2 | | rates for professional medical services. "Contracting | 3 | | affiliation" does not include arrangements among entities | 4 | | under common ownership. | 5 | | "Covered transaction" means any merger, acquisition, or | 6 | | contracting affiliation between 2 or more health care | 7 | | facilities or provider organizations not previously under | 8 | | common ownership or contracting affiliation. | 9 | | "Health care facility" means the following facilities, | 10 | | organizations, and related persons: | 11 | | (1) An ambulatory surgical treatment center required | 12 | | to be licensed under the Ambulatory Surgical Treatment | 13 | | Center Act. | 14 | | (2) An institution, place, building, or agency | 15 | | required to be licensed under the Hospital Licensing Act. | 16 | | (3) A hospital, ambulatory surgical treatment center, | 17 | | or kidney disease treatment center maintained by the State | 18 | | or any department or agency thereof. | 19 | | (4) A kidney disease treatment center, including a | 20 | | free-standing hemodialysis unit required to meet the | 21 | | requirements of 42 CFR 494 in order to be certified for | 22 | | participation in Medicare and Medicaid under Titles XVIII | 23 | | and XIX of the federal Social Security Act of 1935. | 24 | | (5) An institution, place, building, or room used for | 25 | | the performance of outpatient surgical procedures that is | 26 | | leased, owned, or operated by or on behalf of an |
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| 1 | | out-of-state facility. | 2 | | (6) An institution, place, building, or room used for | 3 | | provision of a health care category of service, as defined | 4 | | under the Illinois Health Facilities Planning Act, | 5 | | including, but not limited to, cardiac catheterization and | 6 | | open heart surgery. | 7 | | With the exception of those health care facilities | 8 | | specifically included in this Section, nothing in this Section | 9 | | shall be intended to include facilities operated as a part of | 10 | | the practice of a physician or other licensed health care | 11 | | professional, whether practicing in his or her individual | 12 | | capacity or within the legal structure of any partnership, | 13 | | medical or professional corporation, or unincorporated medical | 14 | | or professional group. Further, this Section shall not apply | 15 | | to physicians or other licensed health care professional's | 16 | | practices where such practices are carried out in a portion of | 17 | | a health care facility under contract with such health care | 18 | | facility by a physician or by other licensed health care | 19 | | professionals, whether practicing in his or her individual | 20 | | capacity or within the legal structure of any partnership, | 21 | | medical or professional corporation, or unincorporated medical | 22 | | or professional groups, unless the entity constructs, | 23 | | modifies, or establishes a health care facility as | 24 | | specifically defined in this Section. | 25 | | "Health care services revenue" means the total revenue | 26 | | received for health care services in the previous 12 months. |
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| 1 | | "Health carriers" has the meaning given to that term in | 2 | | Section 10 of the Health Carrier External Review Act. | 3 | | "Illinois health care entity" means a health care facility | 4 | | or provider organization that has an office in or is doing | 5 | | business in this State. | 6 | | "Merger" means the consolidation of 2 or more | 7 | | organizations, including 2 or more organizations joining | 8 | | through a common parent organization or 2 or more | 9 | | organizations forming a new organization, but does not include | 10 | | a corporate reorganization. | 11 | | "Out-of-state health care entity" means a health care | 12 | | facility or provider organization that is not headquartered in | 13 | | this State and does not do business in this State. | 14 | | "Provider organization" means a corporation, partnership, | 15 | | business trust, association, or organized group of persons, | 16 | | whether incorporated or not, which is in the business of | 17 | | health care delivery or management and that represents 20 or | 18 | | more health care providers in contracting with health carriers | 19 | | or third-party administrators for the payment of health care | 20 | | services. "Provider organization" includes physician | 21 | | organizations, physician-hospital organizations, independent | 22 | | practice associations, provider networks, and accountable care | 23 | | organizations. | 24 | | "Third-party administrator" means an entity that | 25 | | administers payments for health care services on behalf of a | 26 | | client in exchange for an administrative fee. |
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| 1 | | (b) Health care facilities or provider organizations that | 2 | | are party to a covered transaction shall provide notice of | 3 | | such transaction to the Attorney General no later than 30 days | 4 | | prior to the transaction closing or effective date of the | 5 | | transaction. | 6 | | Covered transactions between an Illinois health care | 7 | | entity and an out-of-state health care entity must provide | 8 | | notice under this subsection where the out-of-state entity | 9 | | generates $10,000,000 or more in annual revenue from patients | 10 | | residing in this State. | 11 | | (c) The written notice provided by the parties under | 12 | | subsection (b) shall be provided as follows: | 13 | | (1) For any health care facility or provider | 14 | | organization that is a party to a covered
transaction and | 15 | | files a premerger notification with the
Federal Trade | 16 | | Commission or the United States Department
of Justice, in | 17 | | compliance with the Hart-Scott-Rodino
Antitrust | 18 | | Improvements Act of 1976, 15 U.S.C. 18a, the
notice | 19 | | requirement is satisfied by providing a copy of
such | 20 | | filing to the Attorney General at the same time as it
is | 21 | | provided to the federal government. | 22 | | (2) For any health care facility that is a party to a
| 23 | | covered transaction that is not described in paragraph
| 24 | | (1), the notice requirement is satisfied when the | 25 | | healthcare facility files an application for a change of
| 26 | | ownership with the Health Facilities and Services Review |
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| 1 | | Board, in compliance with the Illinois Health Facilities
| 2 | | Planning Act. The Health Facilities and Services Review
| 3 | | Board shall provide a copy of such filing to the Attorney
| 4 | | General at the same time as it is provided to the
| 5 | | applicable State legislators under subsection (a) of
| 6 | | Section 8.5 of the Illinois Health Facilities Planning
| 7 | | Act. | 8 | | (3) For any health care facility or provider | 9 | | organization that is a party to a covered
transaction that | 10 | | is not described in paragraph (1) or (2),
written notice | 11 | | provided by the parties must include: | 12 | | (A) the names of the parties and their current | 13 | | business address; | 14 | | (B) identification of all locations where health | 15 | | care services are currently provided by each party; | 16 | | (C) a brief description of the nature and purpose | 17 | | of the proposed transaction; and | 18 | | (D) the anticipated effective date of the proposed | 19 | | transaction. | 20 | | Nothing in this subsection prohibits the parties to a | 21 | | covered transaction from voluntarily providing additional | 22 | | information to the Attorney General. | 23 | | (d) The Attorney General may make any requests for | 24 | | additional information from the parties that is relevant to | 25 | | its investigation of the covered transaction within 30 days of | 26 | | the date notice is received under subsections (b) and (c). If |
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| 1 | | the Attorney General requests additional information, the | 2 | | covered transaction may not proceed until 30 days after the | 3 | | parties have substantially complied with the request. Any | 4 | | subsequent request for additional information by the Attorney | 5 | | General shall not further delay the covered transaction from | 6 | | proceeding. Nothing in this Section precludes the Attorney | 7 | | General from conducting an investigation or enforcing State or | 8 | | federal antitrust laws at a later date. | 9 | | (e) Any health care facility or provider organization that | 10 | | fails to comply with any provision of this Section is subject | 11 | | to a civil penalty of not more than $500 per day for each day | 12 | | during which the health care facility or provider organization | 13 | | is in violation of this Section. | 14 | | Whenever the Attorney General has reason to believe that a | 15 | | health care facility or provider organization has engaged in | 16 | | or is engaging in a covered transaction without complying with | 17 | | the provisions of this Section, the Attorney General may apply | 18 | | for and obtain, in an action in the Circuit Court of Sangamon | 19 | | or Cook County, a temporary restraining order or injunction, | 20 | | or both, prohibiting the health care facility or provider | 21 | | organization from continuing its noncompliance or doing any | 22 | | act in furtherance thereof. The court may make such further | 23 | | orders or judgments, at law or in equity, as may be necessary | 24 | | to remedy such noncompliance. | 25 | | Before bringing such an action or seeking to recover a | 26 | | civil
penalty, the Attorney General shall permit the health |
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| 1 | | care
facility or provider organization to come into compliance | 2 | | with this Section within 10 days of being notified of its | 3 | | alleged noncompliance. The right to cure noncompliance does | 4 | | not exist on or after the covered transaction's proposed or | 5 | | actual closing date of the covered transaction, whichever is | 6 | | sooner. | 7 | | (f) This Section is repealed on January 1, 2027. | 8 | | (740 ILCS 10/13 new) | 9 | | Sec. 13. Antitrust Enforcement Fund. Any penalties | 10 | | collected from an entity for violations of this Act shall be | 11 | | deposited into the Antitrust Enforcement Fund, a special fund | 12 | | created in the State treasury that is dedicated to enforcing | 13 | | this Act. | 14 | | This Section is repealed on January 1, 2027.
| 15 | | Section 99. Effective date. This Act takes effect January | 16 | | 1, 2024.".
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