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91_HB4423 LRB9112480MWgc 1 AN ACT to amend the Mental Health and Developmental 2 Disabilities Administrative Act by changing Section 54. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Mental Health and Developmental 6 Disabilities Administrative Act is amended by changing 7 Section 54 as follows: 8 (20 ILCS 1705/54) (from Ch. 91 1/2, par. 100-54) 9 Sec. 54. Establishment of rates for purchase of services 10 and accreditation costs. 11 (a) It is the purpose of this Section to establish 12 procedures for the development, calculation, and 13 communication of rates promulgated by the Department for the 14 purchase of services for persons with a developmental 15 disability, and persons with mental illness; to require the 16 promulgation of rules which specify the treatment of costs 17 for purposes of establishing rates for various purchase care 18 program categories; to require that rates be equitable, 19 understandable, and established through an open, public 20 process; and to require the delineation of where purchase 21 care, grant-in-aid, and other payment mechanisms are most 22 appropriately utilized. The Department's rate-setting policy 23 should stimulate the development of cost effective, 24 clinically appropriate, community-based residential, and 25 other support services for recipients according to an annual 26 statement of purchase care goals and objectives. 27 (b) The Department shall establish rates in all 28 instances where services are purchased by the Department for 29 a specific recipient from a specific community service 30 provider for which the Department has the responsibility for 31 establishing payment rates. When determining rates, the -2- LRB9112480MWgc 1 Department shall take into consideration differences in the 2 costs of doing business among the various geographic regions 3 of the State and shall set rates that reflect those 4 differences. The Department may, for various program 5 categories, adopt rates that are set by other State agencies. 6 (c) The Department shall perform the following duties: 7 (1) Develop rate-setting methodologies for purchase 8 care program categories. 9 (2) Promulgate rules and regulations governing 10 rate-setting, treatment of costs, treatment of occupancy, 11 and payment and contracting processes for purchase care. 12 (3) Collect cost and performance information from 13 care providers. The Department may stipulate forms, unit 14 of service definitions, reporting procedures and 15 reporting intervals. 16 (4) Calculate purchase of care reimbursement rates 17 for specific providers based on the promulgated rate 18 methodology for that program category. 19 (5) Negotiate and implement purchase of care 20 contracts with specific providers. 21 (6) Develop an annual statement of purchase care 22 goals and objectives detailing maximum units of service 23 by program category to be purchased. The plan for each 24 fiscal year shall be completed by May 1 of the previous 25 fiscal year. 26 (7) Conduct an annual review and prepare an annual 27 report of rates and units of service purchased, comparing 28 the annual purchase of care statement with actual 29 services purchased, and the actual cost of providing 30 those services. The report shall be made available by 31 May 1. 32 (8) Establish and promulgate a process and criteria 33 for appealing rates. 34 (9) Develop and promulgate standards and criteria -3- LRB9112480MWgc 1 by which provider performance shall be evaluated. 2 (10) Set rates based on published methodologies and 3 subject to the availability of funds appropriated by the 4 General Assembly. 5 (11) Establish and promulgate a policy regarding 6 applicability of income offsets in rate calculation or 7 payment processes. 8 (12) Develop criteria for selection of payment 9 mechanisms to be employed in funding community services. 10 (d) The Department may investigate and employ 11 alternative rate setting approaches and engage in 12 demonstration projects. These approaches must be publicly 13 articulated by the Department, identifying the purpose and 14 scope of the alternative approach and evaluation to be 15 conducted. 16 (e) (Blank). 17 (f) In addition to its other duties under the Section, 18 the Department must establish procedures and rates to repay 19 community service providers for the providers' costs 20 associated with maintaining their national accreditation. 21 (Source: P.A. 89-58, eff. 1-1-96; 89-507, eff. 7-1-97; 22 90-423, eff. 8-15-97.) 23 Section 99. Effective date. This Act takes effect upon 24 becoming law.