Illinois General Assembly - Illinois Compiled Statutes

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210 ILCS 45/3-304.2

    (210 ILCS 45/3-304.2)
    Sec. 3-304.2. Designation of distressed facilities.

(a) By May 1, 2011, and quarterly thereafter, the Department shall generate and publish quarterly a

list of distressed facilities.  Criteria for inclusion of certified facilities on the list shall be those used by the U.S. General Accounting Office in report 9-689, until such time as the Department by rule modifies the criteria.

(b) In deciding whether and how to modify the criteria used by the General Accounting Office, the Department shall complete a test run of any substitute criteria to determine their  reliability by comparing the number of facilities identified as distressed against the number of distressed facilities generated using the criteria contained in the General Accounting Office report.  The Department may not adopt substitute criteria that generate fewer facilities with a distressed designation than are produced by the General Accounting Office criteria during the test run.

(c) The Department shall, by  rule, adopt criteria to identify non-Medicaid-certified facilities that are distressed and shall publish this list quarterly beginning October 1, 2011.

(d) The Department shall notify each facility of its distressed designation, and of the calculation on

which it is based.

(e) A distressed facility may contract with an independent consultant meeting criteria established by

the Department.  If the distressed facility does not seek the assistance of an independent

consultant, the Department shall place a monitor or a temporary manager in the facility, depending

on the Department's assessment of the condition of the facility.

(f) Independent consultant.  A facility that has been designated a distressed facility may

contract with an independent consultant to develop and assist in the

implementation of a plan of improvement to bring and keep

the facility in compliance with this Act and, if applicable, with federal certification

requirements.  A facility that contracts with an independent consultant

shall have 90 days to develop a plan of improvement and demonstrate a

good faith effort at implementation, and another 90 days to achieve compliance

and take whatever additional actions are called for in the improvement plan

to maintain compliance.  A facility that the Department determines has a plan

of improvement likely to bring and keep the facility in compliance

and that  has demonstrated good faith efforts at implementation

within the first 90 days may be eligible to receive a grant under  the Equity

in Long-term Care Quality Act to assist it in achieving and maintaining compliance.

In this subsection, "independent" consultant means an individual who has no professional or

financial relationship with the facility, any person with a reportable ownership

interest in the facility, or any related parties.  In this subsection, "related parties" has the

meaning attributed to it in the instructions for completing Medicaid cost reports.

(f-5) Monitor and temporary managers.  A distressed facility that does not contract with a consultant shall be assigned a monitor or a temporary manager at the Department's discretion.  The cost of the temporary manager shall be paid by the facility.  The temporary manager shall have the authority determined by the Department, which may grant the temporary manager any or all of the authority a court may grant a receiver.  The temporary manager may apply to the Equity in Long-term Care Quality  Fund for grant funds to implement the plan of improvement.

(g) The Department shall by rule establish a mentor program for owners of distressed facilities.

(h) The Department shall by rule establish sanctions (in addition to those authorized elsewhere in this Article)  against distressed facilities that are not in compliance with this Act and (if applicable) with federal certification requirements.  Criteria for imposing sanctions shall take into account a facility's actions to address the violations and deficiencies that  caused its designation as a distressed facility, and its compliance with this Act and with federal certification requirements (if applicable), subsequent to its designation as a distressed facility, including mandatory revocations if criteria can be agreed upon by the Department, resident advocates, and representatives of the nursing home profession.  By February 1, 2011, the Department shall report to the General Assembly  on the results of negotiations about creating criteria for mandatory license revocations of distressed facilities and make recommendations about any statutory changes it believes are appropriate to protect the health, safety, and welfare of nursing home residents.

(i) The Department may establish by rule  criteria for restricting the owner of a facility on the distressed list from acquiring additional skilled nursing facilities.

(Source: P.A. 96-1372, eff. 7-29-10; 97-813, eff. 7-13-12.)