HB4735eng 93RD GENERAL ASSEMBLY

HB4735 Engrossed LRB093 19043 AMC 44778 b

AN ACT concerning nursing facilities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Nursing Facility Bed Conversion and Modernization Act.

Section 5. Nursing Facility Conversion and Modernization Program.

(a) For the purposes of this Section:

"Nursing facility" means (1) a skilled nursing or intermediate long term care facility, whether public or private and whether organized for profit or not-for-profit, that is subject to licensure by the Department of Public Health under the Nursing Home Care Act, including a county nursing home directed and maintained under Section 5-1005 of the Counties Code, and that is certified under Title XIX of the Social Security Act and (2) a part of a hospital in which skilled or intermediate long term care services within the meaning of Title XVIII or XIX of the Social Security Act are provided.

"Conversion and modernization" means the construction, alteration, reconstruction, renovation, modernization, or improvement of existing nursing facility beds or areas within an existing nursing facility.

(b) Any nursing facility that has, for the previous 3 years, provided services to at least 35% of its resident population under the medical assistance program under Title XIX of the Social Security Act is eligible to apply for a Nursing Facility Conversion and Modernization Grant.

(c) Nursing Facility Conversion and Modernization Grants shall be available for the conversion and modernization of existing nursing facility beds or areas within a nursing facility for any or a combination of any of the following uses:

(1) Conversion of a portion of or all nursing facility beds to an assisted living establishment or a special program or unit for persons with Alzheimer's disease or related disorders licensed under the Assisted Living and Shared Housing Act or to a supported living facility as provided pursuant to Section 5-5.01a of the Public Aid Code.

(2) Conversion of shared nursing facility bedrooms to private, single-bed rooms.

(3) Provision of any alternatives to nursing facility care, which, for purposes of this Section, means those services included in the program of home and community-based waiver services for seniors under the medical assistance program under Title XIX of the Security Act, including, but not limited to, adult day services or respite care living space within a nursing facility.

(d) A conversion and modernization shall not have the effect of:

(1) diminishing or reducing the quality of services available to nursing facility residents; or

(2) forcing any nursing facility resident to involuntarily accept home or community-based services in lieu of nursing facility services; or

(3) diminishing or reducing the supply of long-term care services in any community below the level of need.

(e) Grants may not be used to expand a current building, except (i) for additional space required to accommodate related supportive services, such as dining rooms, kitchen and recreation areas, or other community use areas; or (ii) if the facility demonstrates that new construction is more cost effective than the conversion of existing space.

(f) Notwithstanding any local ordinance related to development, planning, or zoning to the contrary, the conversion and modernization that closes or that curtails, reduces, or changes operations shall be considered a conforming use permitted under local law, provided that the facility is converted to another long-term care service.

(g) Conversions and modernization pursuant to this Act are exempt from the requirements of the Health Facilities Planning Act.

(h) Subject to available appropriations, Nursing Facility Conversion and Modernization Grants shall be available from the Nursing Facility Conversion and Modernization Fund, a special fund hereby created in the State treasury, for capital or one-time capital expenditures, for a maximum of $1,000,000 per nursing facility; provided that grantees shall be required to provide 20%, and may offer to provide more than 20%, as match toward the total cost of the capital project. Any application for a Nursing Facility Conversion and Modernization Grant shall include the total budget that will be necessary, including State and federal funding, for services to operate the program once the capital project is completed, and shall specify the number of existing nursing facility beds that the nursing facility provider agrees to de-license. In distribution of the grants, the following factors shall be considered:

(1) the unique needs of residents and their caregivers in the area in which the facility is located;

(2) the nursing facility bed need in the area in which the facility is located;

(3) the extent to which the conversion and modernization results in the reduction of certified nursing facility beds in an area with excess beds;

(4) compliance history with licensure and certification requirements; and

(5) the extent to which the application reflects collaboration and support for the conversion or modernization by other providers and local government leaders in the community. The application and grant process, including rules and regulations for the Nursing Facility Conversion and Modernization Program, shall be promulgated by the Director of Public Health, in coordination with the Director of Public Aid, the Director of Aging, and the Secretary of Human Services.

(i) Any nursing facility receiving a grant pursuant to the Nursing Facility Conversion and Modernization Program shall reduce the number of certified nursing facility beds by an amount equal to or greater than the number of beds being constructed or modernized for one or more of the permitted uses pursuant to subsection (c).

(j) Any nursing facility receiving a grant pursuant to the Nursing Facility Conversion and Modernization Program shall agree, for a minimum of 10 years after the date that the grant is awarded, to maintain a minimum of 35% of its occupancy for residents eligible for services under the medical assistance program under Title XIX of the Social Security Act. In the event the nursing facility provider or its successor in interest ceases to comply with the requirement set forth in this subsection, the provider shall refund to the Nursing Facility Conversion and Modernization Fund, on an amortized basis, the amount of the grant.

(k) Any nursing facility receiving a grant pursuant to the Nursing Facility Conversion and Modernization Program shall not segregate residents receiving nursing facility services under the medical assistance program under Title XIX of the Social Security Act in an area, section, or portion of the nursing facility and shall not move or transfer a resident within the nursing facility solely due to a change in payment status from private payment to government subsidy.

(l) Nothing in this Section shall prohibit a nursing facility from moving or transferring a resident as authorized by the Nursing Home Care Act.

Section 10. Reporting. The Director of Public Health, in coordination with the Director of Public Aid, the Director of Aging, and the Secretary of Human Services, shall implement mechanisms to monitor and analyze the effect of the Nursing Facility Conversion and Modernization Program, including documenting and verifying the savings to the Medicaid program attributable to this Act. A report containing the analysis shall be submitted to the Governor and the General Assembly on January 1, 2006 and on January 1 of each year thereafter.

Section 90. The Illinois Health Facilities Planning Act is amended by adding Section 12.05 as follows:

(20 ILCS 3960/12.05 new)

Sec. 12.05. Nursing Facility Conversion and Modernization Act. The criteria and standards for health care planning, including but not limited to the statewide inventory established under Section 12 of this Act, shall not be adjusted by any change in the number of nursing facility beds resulting from nursing home conversion or modernization pursuant to the Nursing Facility Conversion and Modernization Act.

Section 95. The State Finance Act is amended by adding Section 5.625 as follows:

(30 ILCS 105/5.625 new)

Sec. 5.625. The Nursing Facility Conversion and Modernization Fund.

Section 99. Effective date. This Act takes effect upon becoming law.