State of Illinois
91st General Assembly
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91_HB4275

 
                                               LRB9111191ACcd

 1        AN ACT to amend the Alternative Health Care Delivery  Act
 2    by changing Sections 30 and 35.

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

 5        Section 5. The Alternative Health Care  Delivery  Act  is
 6    amended by changing Sections 30 and 35 as follows:

 7        (210 ILCS 3/30)
 8        Sec.   30.    Demonstration  program  requirements.   The
 9    requirements  set  forth  in  this  Section  shall  apply  to
10    demonstration programs.
11        (a)  There shall be no more than:
12             (i)  3 subacute  care  hospital  alternative  health
13        care models in the City of Chicago (one of which shall be
14        located on a designated site and shall have been licensed
15        as  a  hospital under the Illinois Hospital Licensing Act
16        within the 10 years immediately  before  the  application
17        for a license);
18             (ii)  2  subacute  care  hospital alternative health
19        care models in the demonstration program for each of  the
20        following areas:
21                  (1)  Cook County outside the City of Chicago.
22                  (2)  DuPage,  Kane,  Lake,  McHenry,  and  Will
23             Counties.
24                  (3)  Municipalities  with  a population greater
25             than 50,000 not located in the  areas  described  in
26             item  (i)  of  subsection (a) and paragraphs (1) and
27             (2) of item (ii) of subsection (a); and
28             (iii)  4 subacute care hospital  alternative  health
29        care models in the demonstration program for rural areas.
30        In selecting among applicants for these licenses in rural
31    areas,   the   Health   Facilities  Planning  Board  and  the
 
                            -2-                LRB9111191ACcd
 1    Department shall give preference to  hospitals  that  may  be
 2    unable  for  economic reasons to provide continued service to
 3    the community in which they are located unless  the  hospital
 4    were to receive an alternative health care model license.
 5        (a-5)  There  shall  be  no  more  than  a  total  of  12
 6    postsurgical  recovery  care  center  alternative health care
 7    models in the demonstration program, located as follows:
 8             (1)  Two in the City of Chicago.
 9             (2)  Two in Cook County outside the City of Chicago.
10        At least one of these shall be owned  or  operated  by  a
11        hospital devoted exclusively to caring for children.
12             (3)  Two in Kane, Lake, and McHenry Counties.
13             (4)  Four  in  municipalities  with  a population of
14        50,000 or more not located  in  the  areas  described  in
15        paragraphs  (1),  (2), and (3), 3 of which shall be owned
16        or operated by hospitals, at least 2 of  which  shall  be
17        located  in  counties  with  a  population  of  less than
18        175,000, according to the most  recent  decennial  census
19        for  which  data are available, and one of which shall be
20        owned or operated by  an  ambulatory  surgical  treatment
21        center.
22             (5)  Two  in  rural  areas,  both  of which shall be
23        owned or operated by hospitals.
24        There shall  be  no  postsurgical  recovery  care  center
25    alternative  health  care  models  located  in  counties with
26    populations greater than 600,000 but less than 1,000,000.   A
27    proposed  postsurgical  recovery care center must be owned or
28    operated by a hospital if it is to be located within, or will
29    primarily serve the residents of, a health  service  area  in
30    which  more  than  60%  of  the  gross patient revenue of the
31    hospitals within that health service area  are  derived  from
32    Medicaid   and  Medicare,  according  to  the  most  recently
33    available calendar year data from the  Illinois  Health  Care
34    Cost  Containment  Council.   Nothing in this paragraph shall
 
                            -3-                LRB9111191ACcd
 1    preclude a hospital  and  an  ambulatory  surgical  treatment
 2    center   from   forming  a  joint  venture  or  developing  a
 3    collaborative agreement to  own  or  operate  a  postsurgical
 4    recovery care center.
 5        (a-10)  There  shall  be  no  more  than  a  total  of  8
 6    children's respite care center alternative health care models
 7    in  the  demonstration  program,  which  shall  be located as
 8    follows:
 9             (1)  One in the City of Chicago.
10             (2)  One in Cook County outside the City of Chicago.
11             (3)  A total of 2 in the area comprised  of  DuPage,
12        Kane, Lake, McHenry, and Will counties.
13             (4)  A   total   of   2  in  municipalities  with  a
14        population of 50,000 or more and    not  located  in  the
15        areas described in paragraphs (1), (2), or (3).
16             (5)  A  total of 2 in rural areas, as defined by the
17        Health Facilities Planning Board.
18        No more than one children's respite care model owned  and
19    operated  by  a  licensed skilled pediatric facility shall be
20    located in each of the areas designated  in  this  subsection
21    (a-10).
22        (a-15)  There  shall  be  an  authorized  community-based
23    residential  rehabilitation  center  alternative  health care
24    model in  the  demonstration  program.   The  community-based
25    residential  rehabilitation  center  shall  be located in the
26    area of Illinois south of Interstate Highway 70.
27        (a-20)  There shall be  no  more  than  10  birth  center
28    alternative  health care models in the demonstration program,
29    located as follows:
30             (1)  Four in the area comprising Cook, DuPage, Kane,
31        Lake, McHenry, and Will counties, one of which  shall  be
32        owned or operated by a hospital and one of which shall be
33        owned or operated by a federally qualified health center.
34             (2)  Three  in  municipalities  with a population of
 
                            -4-                LRB9111191ACcd
 1        50,000 or more not  located  in  the  area  described  in
 2        subparagraph (1) of this paragraph, one of which shall be
 3        owned or operated by a hospital and one of which shall be
 4        owned or operated by a federally qualified health center.
 5             (3)  Three  in  rural  areas,  one of which shall be
 6        owned or operated by a hospital and one of which shall be
 7        owned or operated by a federally qualified health center.
 8        The first 3 birth centers authorized to  operate  by  the
 9    Department  shall  be  located  in or predominantly serve the
10    residents  of  a  health  professional   shortage   area   as
11    determined  by  the  United  States  Department of Health and
12    Human Services.  There shall be no more than 2 birth  centers
13    authorized  to operate in any single health planning area for
14    obstetric services as determined under  the  Illinois  Health
15    Facilities  Planning  Act.   If  a  birth  center  is located
16    outside of a health professional shortage area, (i) the birth
17    center shall be located in a  health  planning  area  with  a
18    demonstrated need for obstetrical service beds, as determined
19    by  the  Illinois  Health  Facilities  Planning Board or (ii)
20    there  must  be  a  reduction  in  the  existing  number   of
21    obstetrical  service  beds  in  the planning area so that the
22    establishment of the birth  center  does  not  result  in  an
23    increase  in  the total number of obstetrical service beds in
24    the health planning area.
25        (b)  Alternative  health  care  models  shall  obtain   a
26    certificate  of  need  from  the  Illinois  Health Facilities
27    Planning Board under the Illinois Health Facilities  Planning
28    Act  before  receiving a license by the Department. If, after
29    obtaining its initial certificate  of  need,  an  alternative
30    health   care  delivery  model  that  is  a  community  based
31    residential rehabilitation center seeks to increase  the  bed
32    capacity of that center, it must obtain a certificate of need
33    from  the  Illinois  Health  Facilities Planning Board before
34    increasing the bed capacity.  Alternative  health care models
 
                            -5-                LRB9111191ACcd
 1    in medically underserved  areas  shall  receive  priority  in
 2    obtaining a certificate of need.
 3        (c)  An  alternative  health  care model license shall be
 4    issued for a period of one year and shall be annually renewed
 5    if the facility or program is in substantial compliance  with
 6    the  Department's  rules  adopted  under this Act. A licensed
 7    alternative  health  care  model  that  continues  to  be  in
 8    substantial  compliance   after   the   conclusion   of   the
 9    demonstration  program  shall be eligible for annual renewals
10    unless and until a different licensure program for that  type
11    of  health  care  model  is  established  by legislation. The
12    Department may issue a provisional license to any alternative
13    health care model that does not substantially comply with the
14    provisions of this Act and the rules adopted under  this  Act
15    if  (i) the Department finds that the alternative health care
16    model has  undertaken  changes  and  corrections  which  upon
17    completion  will  render the alternative health care model in
18    substantial compliance with this Act and rules and  (ii)  the
19    health  and  safety of the patients of the alternative health
20    care model will be protected during the period for which  the
21    provisional  license  is issued.  The Department shall advise
22    the licensee of the conditions under  which  the  provisional
23    license   is  issued,  including  the  manner  in  which  the
24    alternative health  care  model  fails  to  comply  with  the
25    provisions  of  this Act and rules, and the time within which
26    the changes and corrections  necessary  for  the  alternative
27    health  care  model to substantially comply with this Act and
28    rules shall be completed.
29        (d)  Alternative   health   care   models   shall    seek
30    certification  under  Titles  XVIII  and  XIX  of the federal
31    Social Security Act.  In addition,  alternative  health  care
32    models  shall  provide  charitable  care consistent with that
33    provided  by  comparable  health  care   providers   in   the
34    geographic area.
 
                            -6-                LRB9111191ACcd
 1        (d-5)  The   Illinois   Department   of  Public  Aid,  in
 2    cooperation with the Illinois Department  of  Public  Health,
 3    shall  develop  and implement a reimbursement methodology for
 4    all facilities participating in  the  demonstration  program.
 5    The  Illinois Department of Public Aid shall keep a record of
 6    services  provided  under  the   demonstration   program   to
 7    recipients  of  medical  assistance under the Illinois Public
 8    Aid  Code  and  shall  submit  an  annual  report   of   that
 9    information to the Illinois Department of Public Health.
10        (e)  Alternative  health care models shall, to the extent
11    possible, link  and  integrate  their  services  with  nearby
12    health care facilities.
13        (f)  Each alternative health care model shall implement a
14    quality  assurance  program  with  measurable benefits and at
15    reasonable cost.
16    (Source: P.A. 91-65, eff. 7-9-99.)

17        (210 ILCS 3/35)
18        Sec. 35.   Alternative  health  care  models  authorized.
19    Notwithstanding  any  other  law to the contrary, alternative
20    health  care  models  described  in  this  Section   may   be
21    established on a demonstration basis.
22             (1)  Alternative  health  care  model; subacute care
23        hospital.  A subacute care hospital is a designated  site
24        which  provides  medical  specialty care for patients who
25        need a greater  intensity  or  complexity  of  care  than
26        generally  provided in a skilled nursing facility but who
27        no longer require acute hospital care. The average length
28        of stay for patients treated in subacute  care  hospitals
29        shall  not  be  less  than  20  days,  and for individual
30        patients, the expected length of  stay  at  the  time  of
31        admission  shall  not  be  less than 10 days.  Variations
32        from minimum lengths of stay shall  be  reported  to  the
33        Department.  There shall be no more than 13 subacute care
 
                            -7-                LRB9111191ACcd
 1        hospitals   authorized  to  operate  by  the  Department.
 2        Subacute care includes physician supervision,  registered
 3        nursing,  and  physiological  monitoring  on  a continual
 4        basis. A subacute care hospital is either a  freestanding
 5        building  or  a  distinct physical and operational entity
 6        within a hospital or nursing home building.   A  subacute
 7        care  hospital  shall  only  consist  of  beds  currently
 8        existing   in   licensed  hospitals  or  skilled  nursing
 9        facilities,  except,  in  the  City  of  Chicago,  on   a
10        designated site that was licensed as a hospital under the
11        Illinois  Hospital  Licensing  Act  within  the  10 years
12        immediately before the  application  for  an  alternative
13        health care model license. During the period of operation
14        of  the demonstration project, the existing licensed beds
15        shall remain licensed  as  hospital  or  skilled  nursing
16        facility  beds  as well as being licensed under this Act.
17        In order to handle cases of  complications,  emergencies,
18        or  exigent circumstances, a subacute care hospital shall
19        maintain a contractual relationship, including a transfer
20        agreement, with a general  acute  care  hospital.   If  a
21        subacute  care  model  is located in a general acute care
22        hospital, it shall utilize all or a portion  of  the  bed
23        capacity  of that existing hospital.  In no event shall a
24        subacute care hospital use the  word  "hospital"  in  its
25        advertising  or marketing activities or represent or hold
26        itself  out  to  the  public  as  a  general  acute  care
27        hospital.
28             (2)  Alternative   health   care   delivery   model;
29        postsurgical  recovery  care  center.    A   postsurgical
30        recovery  care center is a designated site which provides
31        postsurgical recovery care for generally healthy patients
32        undergoing surgical  procedures  that  require  overnight
33        nursing  care,  pain  control,  or observation that would
34        otherwise  be  provided  in  an  inpatient  setting.    A
 
                            -8-                LRB9111191ACcd
 1        postsurgical  recovery care center is either freestanding
 2        or a defined unit of  an  ambulatory  surgical  treatment
 3        center   or  hospital.  No  facility,  or  portion  of  a
 4        facility, may participate in a demonstration program as a
 5        postsurgical recovery care center unless the facility has
 6        been licensed as an ambulatory surgical treatment  center
 7        or  hospital  for at least 2 years before August 20, 1993
 8        (the effective date of Public Act 88-441).   The  maximum
 9        length  of  stay  for patients in a postsurgical recovery
10        care center is not to exceed 48 hours unless the treating
11        physician requests an extension of time from the recovery
12        center's medical director on  the  basis  of  medical  or
13        clinical  documentation that an additional care period is
14        required for the recovery of a patient  and  the  medical
15        director  approves  the  extension  of time.  In no case,
16        however,  shall  a  patient's  length  of   stay   in   a
17        postsurgical  recovery  care  center  be  longer  than 72
18        hours. If a patient requires an  additional  care  period
19        after  the  expiration  of the 72-hour limit, the patient
20        shall be transferred to an appropriate facility.  Reports
21        on variances from the 48-hour limit shall be sent to  the
22        Department for its evaluation.  The reports shall, before
23        submission  to the Department, have removed from them all
24        patient and physician identifiers.  In  order  to  handle
25        cases   of   complications,   emergencies,   or   exigent
26        circumstances, every postsurgical recovery care center as
27        defined  in  this  paragraph shall maintain a contractual
28        relationship, including  a  transfer  agreement,  with  a
29        general  acute  care  hospital.   A postsurgical recovery
30        care  center  shall  be  no  larger  than  20   beds.   A
31        postsurgical recovery care center shall be located within
32        15  minutes  travel  time  from  the  general  acute care
33        hospital with which the center  maintains  a  contractual
34        relationship, including a transfer agreement, as required
 
                            -9-                LRB9111191ACcd
 1        under this paragraph.
 2             No   postsurgical   recovery   care   center   shall
 3        discriminate  against  any  patient  requiring  treatment
 4        because  of the source of payment for services, including
 5        Medicare and Medicaid recipients.
 6             The Department shall adopt rules  to  implement  the
 7        provisions  of  Public Act 88-441 concerning postsurgical
 8        recovery care centers within 9 months  after  August  20,
 9        1993.
10             (3)  Alternative   health   care   delivery   model;
11        children's  respite  care  center.   A children's respite
12        care center model is  a  designated  site  that  provides
13        respite  for  medically frail, technologically dependent,
14        clinically stable children, up to age 18, for a period of
15        one to 14 days.   This  care  is  to  be  provided  in  a
16        home-like   environment  that  serves  no  more  than  10
17        children  at  a  time.  Children's  respite  care  center
18        services must be available  through  the   model  to  all
19        families,  including those whose care is paid for through
20        the Illinois Department of Public  Aid  or  the  Illinois
21        Department of Children and Family Services.  Each respite
22        care  model  location  shall  be  a  facility  physically
23        separate  and  apart  from any other facility licensed by
24        the Department of Public Health under this or  any  other
25        Act  and  shall  provide,  at  a  minimum,  the following
26        services: out-of-home  respite  care;  hospital  to  home
27        training   for   families   and  caregivers;  short  term
28        transitional care to facilitate  placement  and  training
29        for  foster  care  parents;  parent  and  family  support
30        groups.
31             Coverage  for  the services provided by the Illinois
32        Department of Public Aid  under  this  paragraph  (3)  is
33        contingent  upon  federal waiver approval and is provided
34        only to Medicaid eligible clients  participating  in  the
 
                            -10-               LRB9111191ACcd
 1        home  and  community  based services waiver designated in
 2        Section 1915(c) of the Social Security Act for  medically
 3        frail and technologically dependent children.
 4             (4)  Alternative   health   care   delivery   model;
 5        community  based  residential  rehabilitation  center.  A
 6        community-based residential rehabilitation  center  model
 7        is  a  designated  site  that  provides rehabilitation or
 8        support, or both, for persons who have experienced severe
 9        brain injury, who are medically stable, and who no longer
10        require acute rehabilitative care or intense  medical  or
11        nursing  services.   The  average  length  of  stay  in a
12        community-based residential rehabilitation  center  shall
13        not exceed 4 months.  As an integral part of the services
14        provided,  individuals  are housed in a supervised living
15        setting while having immediate access to  the  community.
16        The  residential  rehabilitation center authorized by the
17        Department may have  more  than  one  residence  included
18        under  the license.  A residence may be no larger than 12
19        beds and shall be located as  an  integral  part  of  the
20        community.   Day  treatment  or individualized outpatient
21        services shall be provided  for  persons  who  reside  in
22        their  own  home.   Functional  outcome  goals  shall  be
23        established for each individual.  Services shall include,
24        but  are  not  limited  to, case management, training and
25        assistance  with  activities  of  daily  living,  nursing
26        consultation,    traditional     therapies     (physical,
27        occupational,  speech),  functional  interventions in the
28        residence  and  community   (job   placement,   shopping,
29        banking,    recreation),    counseling,   self-management
30        strategies,   productive   activities,    and    multiple
31        opportunities   for   skill   acquisition   and  practice
32        throughout the day.  The design of individualized program
33        plans shall be consistent with the outcome goals that are
34        established for each resident.  The programs provided  in
 
                            -11-               LRB9111191ACcd
 1        this  setting  shall  be  accredited by the Commission on
 2        Accreditation of Rehabilitation Facilities  (CARF).   The
 3        program  shall  have  been  accredited by CARF as a Brain
 4        Injury  Community-Integrative  Program  for  at  least  3
 5        years.
 6             (5)  Alternative health care delivery  model;  birth
 7        center.   A birth center shall have no more than 10 beds.
 8        A birth center is a designated site that is away from the
 9        mother's usual place of residence and in which births are
10        planned to occur following a normal,  uncomplicated,  and
11        low-risk  pregnancy.  A birth center shall offer prenatal
12        care  and  community   education   services   and   shall
13        coordinate these services with other health care services
14        available  in the community.  A birth center shall be one
15        or more of the following:
16                  (A)  A part of a hospital.
17                  (B)  A freestanding facility that is physically
18             distinct from a hospital but  is  operated  under  a
19             license  issued  to  a  hospital  under the Hospital
20             Licensing Act.
21                  (C)  A part of the  operation  of  a  federally
22             qualified  health center as designated by the United
23             States Department of Health and Human Services.
24                  (D)  An entity  or  facility  whose  costs  are
25             reimbursable  under  Title XIX of the federal Social
26             Security Act.
27        The Department shall adopt rules that establish standards
28    equivalent  to  those  of   the   National   Association   of
29    Childbearing   Centers'   Standards  for  Freestanding  Birth
30    Centers for all birth centers.  The Department's rules  shall
31    provide for a time period for each birth center not part of a
32    hospital  to  become  accredited  by  the  Commission for the
33    Accreditation of Freestanding Birth Centers.
34        A birth center shall be certified to participate  in  the
 
                            -12-               LRB9111191ACcd
 1    Medicare  and  Medicaid  programs under Titles XVIII and XIX,
 2    respectively, of the federal  Social  Security  Act.  To  the
 3    extent necessary, the Illinois Department of Public Aid shall
 4    apply  for  a  waiver  from  the  United  States  Health Care
 5    Financing  Administration  to  allow  birth  centers  to   be
 6    reimbursed  under  Title  XIX  of the federal Social Security
 7    Act.
 8        A birth center shall be located within 15 minutes  travel
 9    time,  except for a birth center located in a rural area that
10    has been designated as a health professional shortage area as
11    determined by the United  States  Department  of  Health  and
12    Human   Services   and  that  has  a  demonstrated  need  for
13    obstetrical service beds as determined by the Illinois Health
14    Facilities Planning Board  where  the  travel  time  may  not
15    exceed  30 minutes, from the general acute care hospital with
16    which the birth center maintains a contractual  relationship,
17    including  a  transfer  agreement,  as  required  under  this
18    paragraph.   The  services  of  a consultant physician who is
19    certified or eligible for certification by the American Board
20    of  Obstetrics  and  Gynecology  or  the  American  Board  of
21    Osteopathic Obstetricians and Gynecologists or  has  hospital
22    obstetrical  privileges are required in birth centers that do
23    not have a physician on the clinical staff who  is  certified
24    or  eligible  for  certification  by  the  American  Board of
25    Obstetrics  and  Gynecology  or   the   American   Board   of
26    Osteopathic  Obstetricians  and Gynecologists or has hospital
27    obstetrical  privileges.   A  consultant  physician  may   be
28    available  either  on  the  premises or by phone.  If a birth
29    center employs certified nurse midwives,  a  certified  nurse
30    midwife  shall  be  the  Director  of  Nursing  for Midwifery
31    Services who is responsible for the development  of  policies
32    and  procedures for services as provided by Department rules.
33    An obstetrician,  family  practitioner,  or  certified  nurse
34    midwife  shall  attend  each  woman in labor from the time of
 
                            -13-               LRB9111191ACcd
 1    admission through birth and  throughout  the  immediate  post
 2    partum  period.   Attendance may be delegated only to another
 3    physician or certified nurse midwife.  Additionally, a second
 4    staff person shall also be present at each birth who is under
 5    the supervision of the physician or certified  nurse  midwife
 6    in attendance, has specialized training in labor and delivery
 7    techniques  and  care  of  newborns, and receives planned and
 8    ongoing  training  as  needed  to  perform  assigned   duties
 9    effectively.   The  maximum  length of stay for patients in a
10    birth center is not to exceed 24 hours  unless  the  treating
11    provider  requests  additional  days  from the birth center's
12    medical  director  on  the  basis  of  medical  or   clinical
13    documentation  that an additional care period is required for
14    the recovery of a patient.  Reports on variances from the  24
15    hour  limit  shall  be sent to the Department for evaluation.
16    Before  submission  to  the  Department,  all   patient   and
17    physician  identifiers must be removed from the reports.  The
18    birth center shall  participate  in  the  Illinois  Perinatal
19    System under the Developmental Disability Prevention Act.  At
20    a  minimum, this participation shall require birth centers to
21    establish a letter of agreement with  a  hospital  designated
22    under  the Perinatal System.  A hospital that operates or has
23    a letter of agreement with a birth center shall  include  the
24    birth  center  under  its  maternity  service  plan under the
25    Hospital Licensing Act and shall include the birth center  in
26    the   hospital's   letter  of  agreement  with  its  regional
27    perinatal center.
28        No birth center shall discriminate  against  any  patient
29    requiring  treatment  because  of  the  source of payment for
30    services, including Medicare and Medicaid recipients.
31        Within  9  months  after  the  effective  date  of   this
32    amendatory  Act  of the 91st General Assembly, the Department
33    shall  adopt  rules  that  are  consistent   with   standards
34    developed   by   the   American  College  of  Obstetrics  and
 
                            -14-               LRB9111191ACcd
 1    Gynecology and operation and research protocols developed  in
 2    cooperation    with   obstetric   departments   and   related
 3    institutional  review  boards.  Obstetric   departments   and
 4    related  institutional review boards shall collect and review
 5    birth center information as necessary to  assess  the  safety
 6    and birth outcomes at the birth centers.
 7        The  Department  shall adopt other rules to implement the
 8    provisions  of  this  amendatory  Act  of  the  91st  General
 9    Assembly within 9 months after the  effective  date  of  this
10    amendatory Act of the 91st General Assembly.
11    (Source: P.A. 91-65, eff. 7-9-99; 91-357, eff. 7-29-99.)

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