HB6605 93RD GENERAL ASSEMBLY

LRB093 15235 DRJ 46205 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6605

Introduced 02/09/04, by Dan Reitz

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.620 new

Creates the Nursing Facility Conversion Funding Act and amends the State Finance Act. Creates the Nursing Facility Conversion Cash Fund as a special fund in the State treasury, to be used by the Department of Public Health to make grants to nursing facilities for capital or one-time expenditures to convert all or a portion of such facilities to licensed assisted living establishments or other alternatives to nursing facility care. Provides for a refund of a grant to the State if the grantee or its successor in interest ceases to operate an assisted living establishment or other alternative to nursing facility care within 10 years after beginning operation.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning health.

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 Conversion Funding Act.

Section 5. Nursing Facility Conversion Cash Fund. The Nursing Facility Conversion Cash Fund is created as a special fund in the State treasury. Moneys in the Fund shall consist of moneys appropriated by the General Assembly to the Department of Public Health for the purpose of making grants under this Act and the receipts from donations or grants to the Department of Public Health for the purpose of enabling the Department to make grants under this Act. The Department of Public Health shall use moneys in the fund to make grants to nursing facilities for capital or one-time expenditures to convert all or a portion of such facilities to assisted living establishments licensed under the Assisted Living and Shared Housing Act or to other alternatives to nursing facility care. Interest earned by the fund shall be credited to the fund.

Section 10. Grants.

(a) The Department of Public Health shall make grants from the Nursing Facility Conversion Cash Fund available to nursing facilities for capital or one-time expenditures to convert all or a portion of such facilities to assisted living establishments licensed under the Assisted Living and Shared Housing Act or to other alternatives to nursing facility care. A grant may cover a facility's costs incurred in making such a conversion, including, but not limited to, startup and training expenses and operating losses for the first year.

(b) A nursing facility may not use a grant to expand the facility's resident capacity beyond the structural parameters of the building existing at the time the grant is made, except that a facility may use a grant for additional kitchen space when required to accommodate related supportive services, such as dining rooms, kitchen and recreation areas, or other community-use areas.

Section 15. Eligibility for grants. A nursing facility that is enrolled in the medical assistance program under Article V of the Illinois Public Aid Code as a provider of long-term care services and that has been enrolled as such a provider for at least 3 years may apply for a grant under this Act. A facility shall apply in the form and manner prescribed by the Department of Public Health in rules.

Section 20. Criteria for grant awards.

(a) In determining whether to award a grant to an applicant under this Act, the Department of Public Health shall consider whether the applicant has demonstrated the following:

(1) The conversion will offer efficient and economical care to persons requiring long-term care in the area served by the applicant.

(2) Assisted living services or other alternatives to nursing facility care are unlikely to be available in the area served by the applicant for persons who are eligible for medical assistance under Article V of the Illinois Public Aid Code.

(3) The reduction in the availability of nursing facility services as a result of the conversion is not expected to cause undue hardship on persons who require nursing facility care.

(4) The conversion will result in a lower reimbursement rate under the medical assistance program.

The Department may also consider other factors as it determines by rule, including whether an applicant's facility is located in an underserved area.

(b) In its rules implementing this Section, the Department shall specify priorities for awarding grants.

Section 25. Refund of grant. If a recipient of a grant under this Act, or a recipient's successor in interest, ceases to operate an assisted living establishment or other alternative to nursing facility care within 10 years after beginning operation of the establishment or other alternative, then the recipient or the successor in interest must refund to the Nursing Facility Conversion Cash Fund the amount of the grant, on an amortized basis.

Section 30. Rules. The Department of Public Health shall adopt rules necessary to implement this Act.

Section 90. The State Finance Act is amended by adding Section 5.620 as follows:

(30 ILCS 105/5.620 new)

Sec. 5.620. The Nursing Facility Conversion Cash Fund.