Full Text of HB4706 98th General Assembly
HB4706 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB4706 Introduced , by Rep. Cynthia Soto SYNOPSIS AS INTRODUCED: |
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20 ILCS 3960/3 | from Ch. 111 1/2, par. 1153 |
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Amends the Illinois Health Facilities Planning Act. Adds "managed care entities" to the definition of "health care facilities" under the Act. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Health Facilities Planning Act is | 5 | | amended by changing Section 3 as follows:
| 6 | | (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
| 7 | | (Section scheduled to be repealed on December 31, 2019) | 8 | | Sec. 3. Definitions. As used in this Act:
| 9 | | "Health care facilities" means and includes
the following | 10 | | facilities, organizations, and related persons:
| 11 | | 1. An ambulatory surgical treatment center required to | 12 | | be licensed
pursuant to the Ambulatory Surgical Treatment | 13 | | Center Act;
| 14 | | 2. An institution, place, building, or agency required | 15 | | to be licensed
pursuant to the Hospital Licensing Act;
| 16 | | 3. Skilled and intermediate long term care facilities | 17 | | licensed under the
Nursing
Home Care Act;
| 18 | | 3.5. Skilled and intermediate care facilities licensed | 19 | | under the ID/DD Community Care Act; | 20 | | 3.7. Facilities licensed under the Specialized Mental | 21 | | Health Rehabilitation Act;
| 22 | | 4. Hospitals, nursing homes, ambulatory surgical | 23 | | treatment centers, or
kidney disease treatment centers
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| 1 | | maintained by the State or any department or agency | 2 | | thereof;
| 3 | | 5. Kidney disease treatment centers, including a | 4 | | free-standing
hemodialysis unit required to be licensed | 5 | | under the End Stage Renal Disease Facility Act;
| 6 | | 6. An institution, place, building, or room used for | 7 | | the performance of
outpatient surgical procedures that is | 8 | | leased, owned, or operated by or on
behalf of an | 9 | | out-of-state facility;
| 10 | | 7. An institution, place, building, or room used for | 11 | | provision of a health care category of service, including, | 12 | | but not limited to, cardiac catheterization and open heart | 13 | | surgery; and | 14 | | 8. An institution, place, building, or room used for | 15 | | provision of major medical equipment used in the direct | 16 | | clinical diagnosis or treatment of patients, and whose | 17 | | project cost is in excess of the capital expenditure | 18 | | minimum ; and . | 19 | | 9. Managed care entities. | 20 | | This Act shall not apply to the construction of any new | 21 | | facility or the renovation of any existing facility located on | 22 | | any campus facility as defined in Section 5-5.8b of the | 23 | | Illinois Public Aid Code, provided that the campus facility | 24 | | encompasses 30 or more contiguous acres and that the new or | 25 | | renovated facility is intended for use by a licensed | 26 | | residential facility. |
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| 1 | | No federally owned facility shall be subject to the | 2 | | provisions of this
Act, nor facilities used solely for healing | 3 | | by prayer or spiritual means.
| 4 | | No facility licensed under the Supportive Residences | 5 | | Licensing Act or the
Assisted Living and Shared Housing Act
| 6 | | shall be subject to the provisions of this Act.
| 7 | | No facility established and operating under the | 8 | | Alternative Health Care Delivery Act as a children's respite | 9 | | care center alternative health care model demonstration | 10 | | program or as an Alzheimer's Disease Management Center | 11 | | alternative health care model demonstration program shall be | 12 | | subject to the provisions of this Act. | 13 | | A facility designated as a supportive living facility that | 14 | | is in good
standing with the program
established under Section | 15 | | 5-5.01a of
the Illinois Public Aid Code shall not be subject to | 16 | | the provisions of this
Act.
| 17 | | This Act does not apply to facilities granted waivers under | 18 | | Section 3-102.2
of the Nursing Home Care Act. However, if a | 19 | | demonstration project under that
Act applies for a certificate
| 20 | | of need to convert to a nursing facility, it shall meet the | 21 | | licensure and
certificate of need requirements in effect as of | 22 | | the date of application. | 23 | | This Act does not apply to a dialysis facility that | 24 | | provides only dialysis training, support, and related services | 25 | | to individuals with end stage renal disease who have elected to | 26 | | receive home dialysis. This Act does not apply to a dialysis |
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| 1 | | unit located in a licensed nursing home that offers or provides | 2 | | dialysis-related services to residents with end stage renal | 3 | | disease who have elected to receive home dialysis within the | 4 | | nursing home. The Board, however, may require these dialysis | 5 | | facilities and licensed nursing homes to report statistical | 6 | | information on a quarterly basis to the Board to be used by the | 7 | | Board to conduct analyses on the need for proposed kidney | 8 | | disease treatment centers.
| 9 | | This Act shall not apply to the closure of an entity or a | 10 | | portion of an
entity licensed under the Nursing Home Care Act, | 11 | | the Specialized Mental Health Rehabilitation Act, or the ID/DD | 12 | | Community Care Act, with the exceptions of facilities operated | 13 | | by a county or Illinois Veterans Homes, that elects to convert, | 14 | | in
whole or in part, to an assisted living or shared housing | 15 | | establishment
licensed under the Assisted Living and Shared | 16 | | Housing Act.
| 17 | | This Act does not apply to any change of ownership of a | 18 | | healthcare facility that is licensed under the Nursing Home | 19 | | Care Act, the Specialized Mental Health Rehabilitation Act, or | 20 | | the ID/DD Community Care Act, with the exceptions of facilities | 21 | | operated by a county or Illinois Veterans Homes. Changes of | 22 | | ownership of facilities licensed under the Nursing Home Care | 23 | | Act must meet the requirements set forth in Sections 3-101 | 24 | | through 3-119 of the Nursing Home Care Act.
| 25 | | With the exception of those health care facilities | 26 | | specifically
included in this Section, nothing in this Act |
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| 1 | | shall be intended to
include facilities operated as a part of | 2 | | the practice of a physician or
other licensed health care | 3 | | professional, whether practicing in his
individual capacity or | 4 | | within the legal structure of any partnership,
medical or | 5 | | professional corporation, or unincorporated medical or
| 6 | | professional group. Further, this Act shall not apply to | 7 | | physicians or
other licensed health care professional's | 8 | | practices where such practices
are carried out in a portion of | 9 | | a health care facility under contract
with such health care | 10 | | facility by a physician or by other licensed
health care | 11 | | professionals, whether practicing in his individual capacity
| 12 | | or within the legal structure of any partnership, medical or
| 13 | | professional corporation, or unincorporated medical or | 14 | | professional
groups, unless the entity constructs, modifies, | 15 | | or establishes a health care facility as specifically defined | 16 | | in this Section. This Act shall apply to construction or
| 17 | | modification and to establishment by such health care facility | 18 | | of such
contracted portion which is subject to facility | 19 | | licensing requirements,
irrespective of the party responsible | 20 | | for such action or attendant
financial obligation. | 21 | | No permit or exemption is required for a facility licensed | 22 | | under the ID/DD Community Care Act prior to the reduction of | 23 | | the number of beds at a facility. If there is a total reduction | 24 | | of beds at a facility licensed under the ID/DD Community Care | 25 | | Act, this is a discontinuation or closure of the facility. | 26 | | However, if a facility licensed under the ID/DD Community Care |
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| 1 | | Act reduces the number of beds or discontinues the facility, | 2 | | that facility must notify the Board as provided in Section 14.1 | 3 | | of this Act.
| 4 | | "Person" means any one or more natural persons, legal | 5 | | entities,
governmental bodies other than federal, or any | 6 | | combination thereof.
| 7 | | "Consumer" means any person other than a person (a) whose | 8 | | major
occupation currently involves or whose official capacity | 9 | | within the last
12 months has involved the providing, | 10 | | administering or financing of any
type of health care facility, | 11 | | (b) who is engaged in health research or
the teaching of | 12 | | health, (c) who has a material financial interest in any
| 13 | | activity which involves the providing, administering or | 14 | | financing of any
type of health care facility, or (d) who is or | 15 | | ever has been a member of
the immediate family of the person | 16 | | defined by (a), (b), or (c).
| 17 | | "State Board" or "Board" means the Health Facilities and | 18 | | Services Review Board.
| 19 | | "Construction or modification" means the establishment, | 20 | | erection,
building, alteration, reconstruction, modernization, | 21 | | improvement,
extension, discontinuation, change of ownership, | 22 | | of or by a health care
facility, or the purchase or acquisition | 23 | | by or through a health care facility
of
equipment or service | 24 | | for diagnostic or therapeutic purposes or for
facility | 25 | | administration or operation, or any capital expenditure made by
| 26 | | or on behalf of a health care facility which
exceeds the |
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| 1 | | capital expenditure minimum; however, any capital expenditure
| 2 | | made by or on behalf of a health care facility for (i) the | 3 | | construction or
modification of a facility licensed under the | 4 | | Assisted Living and Shared
Housing Act or (ii) a conversion | 5 | | project undertaken in accordance with Section 30 of the Older | 6 | | Adult Services Act shall be excluded from any obligations under | 7 | | this Act.
| 8 | | "Establish" means the construction of a health care | 9 | | facility or the
replacement of an existing facility on another | 10 | | site or the initiation of a category of service.
| 11 | | "Major medical equipment" means medical equipment which is | 12 | | used for the
provision of medical and other health services and | 13 | | which costs in excess
of the capital expenditure minimum, | 14 | | except that such term does not include
medical equipment | 15 | | acquired
by or on behalf of a clinical laboratory to provide | 16 | | clinical laboratory
services if the clinical laboratory is | 17 | | independent of a physician's office
and a hospital and it has | 18 | | been determined under Title XVIII of the Social
Security Act to | 19 | | meet the requirements of paragraphs (10) and (11) of Section
| 20 | | 1861(s) of such Act. In determining whether medical equipment | 21 | | has a value
in excess of the capital expenditure minimum, the | 22 | | value of studies, surveys,
designs, plans, working drawings, | 23 | | specifications, and other activities
essential to the | 24 | | acquisition of such equipment shall be included.
| 25 | | "Capital Expenditure" means an expenditure: (A) made by or | 26 | | on behalf of
a health care facility (as such a facility is |
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| 1 | | defined in this Act); and
(B) which under generally accepted | 2 | | accounting principles is not properly
chargeable as an expense | 3 | | of operation and maintenance, or is made to obtain
by lease or | 4 | | comparable arrangement any facility or part thereof or any
| 5 | | equipment for a facility or part; and which exceeds the capital | 6 | | expenditure
minimum.
| 7 | | For the purpose of this paragraph, the cost of any studies, | 8 | | surveys, designs,
plans, working drawings, specifications, and | 9 | | other activities essential
to the acquisition, improvement, | 10 | | expansion, or replacement of any plant
or equipment with | 11 | | respect to which an expenditure is made shall be included
in | 12 | | determining if such expenditure exceeds the capital | 13 | | expenditures minimum.
Unless otherwise interdependent, or | 14 | | submitted as one project by the applicant, components of | 15 | | construction or modification undertaken by means of a single | 16 | | construction contract or financed through the issuance of a | 17 | | single debt instrument shall not be grouped together as one | 18 | | project. Donations of equipment
or facilities to a health care | 19 | | facility which if acquired directly by such
facility would be | 20 | | subject to review under this Act shall be considered capital
| 21 | | expenditures, and a transfer of equipment or facilities for | 22 | | less than fair
market value shall be considered a capital | 23 | | expenditure for purposes of this
Act if a transfer of the | 24 | | equipment or facilities at fair market value would
be subject | 25 | | to review.
| 26 | | "Capital expenditure minimum" means $11,500,000 for |
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| 1 | | projects by hospital applicants, $6,500,000 for applicants for | 2 | | projects related to skilled and intermediate care long-term | 3 | | care facilities licensed under the Nursing Home Care Act, and | 4 | | $3,000,000 for projects by all other applicants, which shall be | 5 | | annually
adjusted to reflect the increase in construction costs | 6 | | due to inflation, for major medical equipment and for all other
| 7 | | capital expenditures.
| 8 | | "Non-clinical service area" means an area (i) for the | 9 | | benefit of the
patients, visitors, staff, or employees of a | 10 | | health care facility and (ii) not
directly related to the | 11 | | diagnosis, treatment, or rehabilitation of persons
receiving | 12 | | services from the health care facility. "Non-clinical service | 13 | | areas"
include, but are not limited to, chapels; gift shops; | 14 | | news stands; computer
systems; tunnels, walkways, and | 15 | | elevators; telephone systems; projects to
comply with life | 16 | | safety codes; educational facilities; student housing;
| 17 | | patient, employee, staff, and visitor dining areas; | 18 | | administration and
volunteer offices; modernization of | 19 | | structural components (such as roof
replacement and masonry | 20 | | work); boiler repair or replacement; vehicle
maintenance and | 21 | | storage facilities; parking facilities; mechanical systems for
| 22 | | heating, ventilation, and air conditioning; loading docks; and | 23 | | repair or
replacement of carpeting, tile, wall coverings, | 24 | | window coverings or treatments,
or furniture. Solely for the | 25 | | purpose of this definition, "non-clinical service
area" does | 26 | | not include health and fitness centers.
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| 1 | | "Areawide" means a major area of the State delineated on a
| 2 | | geographic, demographic, and functional basis for health | 3 | | planning and
for health service and having within it one or | 4 | | more local areas for
health planning and health service. The | 5 | | term "region", as contrasted
with the term "subregion", and the | 6 | | word "area" may be used synonymously
with the term "areawide".
| 7 | | "Local" means a subarea of a delineated major area that on | 8 | | a
geographic, demographic, and functional basis may be | 9 | | considered to be
part of such major area. The term "subregion" | 10 | | may be used synonymously
with the term "local".
| 11 | | "Physician" means a person licensed to practice in | 12 | | accordance with
the Medical Practice Act of 1987, as amended.
| 13 | | "Licensed health care professional" means a person | 14 | | licensed to
practice a health profession under pertinent | 15 | | licensing statutes of the
State of Illinois.
| 16 | | "Director" means the Director of the Illinois Department of | 17 | | Public Health.
| 18 | | "Agency" means the Illinois Department of Public Health.
| 19 | | "Alternative health care model" means a facility or program | 20 | | authorized
under the Alternative Health Care Delivery Act.
| 21 | | "Out-of-state facility" means a person that is both (i) | 22 | | licensed as a
hospital or as an ambulatory surgery center under | 23 | | the laws of another state
or that
qualifies as a hospital or an | 24 | | ambulatory surgery center under regulations
adopted pursuant | 25 | | to the Social Security Act and (ii) not licensed under the
| 26 | | Ambulatory Surgical Treatment Center Act, the Hospital |
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| 1 | | Licensing Act, or the
Nursing Home Care Act. Affiliates of | 2 | | out-of-state facilities shall be
considered out-of-state | 3 | | facilities. Affiliates of Illinois licensed health
care | 4 | | facilities 100% owned by an Illinois licensed health care | 5 | | facility, its
parent, or Illinois physicians licensed to | 6 | | practice medicine in all its
branches shall not be considered | 7 | | out-of-state facilities. Nothing in
this definition shall be
| 8 | | construed to include an office or any part of an office of a | 9 | | physician licensed
to practice medicine in all its branches in | 10 | | Illinois that is not required to be
licensed under the | 11 | | Ambulatory Surgical Treatment Center Act.
| 12 | | "Change of ownership of a health care facility" means a | 13 | | change in the
person
who has ownership or
control of a health | 14 | | care facility's physical plant and capital assets. A change
in | 15 | | ownership is indicated by
the following transactions: sale, | 16 | | transfer, acquisition, lease, change of
sponsorship, or other | 17 | | means of
transferring control.
| 18 | | "Related person" means any person that: (i) is at least 50% | 19 | | owned, directly
or indirectly, by
either the health care | 20 | | facility or a person owning, directly or indirectly, at
least | 21 | | 50% of the health
care facility; or (ii) owns, directly or | 22 | | indirectly, at least 50% of the
health care facility.
| 23 | | "Charity care" means care provided by a health care | 24 | | facility for which the provider does not expect to receive | 25 | | payment from the patient or a third-party payer. | 26 | | "Freestanding emergency center" means a facility subject |
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| 1 | | to licensure under Section 32.5 of the Emergency Medical | 2 | | Services (EMS) Systems Act. | 3 | | "Category of service" means a grouping by generic class of | 4 | | various types or levels of support functions, equipment, care, | 5 | | or treatment provided to patients or residents, including, but | 6 | | not limited to, classes such as medical-surgical, pediatrics, | 7 | | or cardiac catheterization. A category of service may include | 8 | | subcategories or levels of care that identify a particular | 9 | | degree or type of care within the category of service. Nothing | 10 | | in this definition shall be construed to include the practice | 11 | | of a physician or other licensed health care professional while | 12 | | functioning in an office providing for the care, diagnosis, or | 13 | | treatment of patients. A category of service that is subject to | 14 | | the Board's jurisdiction must be designated in rules adopted by | 15 | | the Board. | 16 | | (Source: P.A. 97-38, eff. 6-28-11; 97-277, eff. 1-1-12; 97-813, | 17 | | eff. 7-13-12; 97-980, eff. 8-17-12; 98-414, eff. 1-1-14.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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