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215 ILCS 125/2-8
(215 ILCS 125/2-8) (from Ch. 111 1/2, par. 1407.01)
Sec. 2-8.
Provider agreements.
(a) All provider contracts currently in
existence between any organization and any hospital which are renewed on
or after 180 days following the effective date of this amendatory Act of
1987, and all contracts between any organization and any hospital executed
on or after 180 days after such effective date, shall contain the following
"hold-harmless" clause: "The provider agrees that in no event, including
but not limited to nonpayment by the organization of amounts due the
hospital provider under this contract, insolvency of the organization or
any breach of this contract by the organization, shall the hospital
provider or its assignees or subcontractors have a right to seek any type
of payment from, bill, charge, collect a deposit from, or have any recourse
against, the enrollee, persons acting on the enrollee's behalf (other than
the organization), the employer or group contract holder for services
provided pursuant to this contract except for the payment of applicable
co-payments or deductibles for services covered by the organization or fees
for services not covered by the organization. The requirements of this
clause shall survive any termination of this contract for services rendered
prior to such termination, regardless of the cause of such termination. The
organization's enrollees, the persons acting on the enrollee's behalf
(other than the organization) and the employer or group contract holder
shall be third party beneficiaries of this clause. This clause supersedes
any oral or written agreement now existing or hereafter entered into
between the provider and the enrollee, persons acting on the enrollee's
behalf (other than the organization) and the employer or group contract
holder." To the extent that any hospital provider contract, which is
renewed or entered into on or after 180 days following the effective date
of this amendatory Act of 1987, fails to incorporate such provisions, such
provisions shall be deemed incorporated into such contracts by operation of
law as of the date of such renewal or execution.
(b) All provider and subcontractor contracts must contain provisions
whereby the provider or subcontractor shall provide, arrange for, or
participate in the quality assurance programs mandated by this Act, unless
the Illinois Department of Public Health certifies that such programs will
be fully implemented without any participation or action from such contracting provider.
(c) The Director may promulgate rules requiring that provider contracts
contain provisions concerning reasonable notices to be given between the
parties and for the organization to provide reasonable notice to its
enrollees and to the Director. Notice shall be given for such events as,
but not limited to, termination of insurance protection, quality assurance
or availability of medical care.
(Source: P.A. 86-620.)
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