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Public Act 093-0935
Public Act 0935 93RD GENERAL ASSEMBLY
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Public Act 093-0935
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| HB1086 Enrolled |
LRB093 05461 LRD 05552 b |
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| AN ACT concerning health facilities.
| Be it enacted by the People of the State of Illinois, | represented in the General Assembly:
| Section 5. The Illinois Health Facilities Planning Act is | amended by changing Section 3 and by adding Section 8.5 as | follows:
| (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
| (Section scheduled to be repealed on July 1, 2008)
| Sec. 3. Definitions. As used in this Act:
| "Health care facilities" means and includes
the following | facilities and organizations:
| 1. An ambulatory surgical treatment center required to | be licensed
pursuant to the Ambulatory Surgical Treatment | Center Act;
| 2. An institution, place, building, or agency required | to be licensed
pursuant to the Hospital Licensing Act;
| 3. Skilled and intermediate long term care facilities | licensed under the
Nursing
Home Care Act;
| 4. Hospitals, nursing homes, ambulatory surgical | treatment centers, or
kidney disease treatment centers
| maintained by the State or any department or agency | thereof;
| 5. Kidney disease treatment centers, including a | free-standing
hemodialysis unit; and
| 6. An institution, place, building, or room used for | the performance of
outpatient surgical procedures that is | leased, owned, or operated by or on
behalf of an | out-of-state facility.
| No federally owned facility shall be subject to the | provisions of this
Act, nor facilities used solely for healing | by prayer or spiritual means.
| No facility licensed under the Supportive Residences |
| Licensing Act or the
Assisted Living and Shared Housing Act
| shall be subject to the provisions of this Act.
| A facility designated as a supportive living facility that | is in good
standing with the demonstration project established | under Section 5-5.01a of
the Illinois Public Aid Code shall not | be subject to the provisions of this
Act.
| This Act does not apply to facilities granted waivers under | Section 3-102.2
of the Nursing Home Care Act. However, if a | demonstration project under that
Act applies for a certificate
| of need to convert to a nursing facility, it shall meet the | licensure and
certificate of need requirements in effect as of | the date of application.
| This Act shall not apply to the closure of an entity or a | portion of an
entity licensed under the Nursing Home Care Act | that elects to convert, in
whole or in part, to an assisted | living or shared housing establishment
licensed under the | Assisted Living and Shared Housing Act.
| With the exception of those health care facilities | specifically
included in this Section, nothing in this Act | shall be intended to
include facilities operated as a part of | the practice of a physician or
other licensed health care | professional, whether practicing in his
individual capacity or | within the legal structure of any partnership,
medical or | professional corporation, or unincorporated medical or
| professional group. Further, this Act shall not apply to | physicians or
other licensed health care professional's | practices where such practices
are carried out in a portion of | a health care facility under contract
with such health care | facility by a physician or by other licensed
health care | professionals, whether practicing in his individual capacity
| or within the legal structure of any partnership, medical or
| professional corporation, or unincorporated medical or | professional
groups. This Act shall apply to construction or
| modification and to establishment by such health care facility | of such
contracted portion which is subject to facility | licensing requirements,
irrespective of the party responsible |
| for such action or attendant
financial obligation.
| "Person" means any one or more natural persons, legal | entities,
governmental bodies other than federal, or any | combination thereof.
| "Consumer" means any person other than a person (a) whose | major
occupation currently involves or whose official capacity | within the last
12 months has involved the providing, | administering or financing of any
type of health care facility, | (b) who is engaged in health research or
the teaching of | health, (c) who has a material financial interest in any
| activity which involves the providing, administering or | financing of any
type of health care facility, or (d) who is or | ever has been a member of
the immediate family of the person | defined by (a), (b), or (c).
| "State Board" means the Health Facilities Planning Board.
| "Construction or modification" means the establishment, | erection,
building, alteration, reconstruction, modernization, | improvement,
extension, discontinuation, change of ownership, | of or by a health care
facility, or the purchase or acquisition | by or through a health care facility
of
equipment or service | for diagnostic or therapeutic purposes or for
facility | administration or operation, or any capital expenditure made by
| or on behalf of a health care facility which
exceeds the | capital expenditure minimum; however, any capital expenditure
| made by or on behalf of a health care facility for the | construction or
modification of a facility licensed under the | Assisted Living and Shared
Housing Act shall be excluded from | any obligations under this Act.
| "Establish" means the construction of a health care | facility or the
replacement of an existing facility on another | site.
| "Major medical equipment" means medical equipment which is | used for the
provision of medical and other health services and | which costs in excess
of the capital expenditure minimum, | except that such term does not include
medical equipment | acquired
by or on behalf of a clinical laboratory to provide |
| clinical laboratory
services if the clinical laboratory is | independent of a physician's office
and a hospital and it has | been determined under Title XVIII of the Social
Security Act to | meet the requirements of paragraphs (10) and (11) of Section
| 1861(s) of such Act. In determining whether medical equipment | has a value
in excess of the capital expenditure minimum, the | value of studies, surveys,
designs, plans, working drawings, | specifications, and other activities
essential to the | acquisition of such equipment shall be included.
| "Capital Expenditure" means an expenditure: (A) made by or | on behalf of
a health care facility (as such a facility is | defined in this Act); and
(B) which under generally accepted | accounting principles is not properly
chargeable as an expense | of operation and maintenance, or is made to obtain
by lease or | comparable arrangement any facility or part thereof or any
| equipment for a facility or part; and which exceeds the capital | expenditure
minimum.
| For the purpose of this paragraph, the cost of any studies, | surveys, designs,
plans, working drawings, specifications, and | other activities essential
to the acquisition, improvement, | expansion, or replacement of any plant
or equipment with | respect to which an expenditure is made shall be included
in | determining if such expenditure exceeds the capital | expenditures minimum.
Donations of equipment
or facilities to a | health care facility which if acquired directly by such
| facility would be subject to review under this Act shall be | considered capital
expenditures, and a transfer of equipment or | facilities for less than fair
market value shall be considered | a capital expenditure for purposes of this
Act if a transfer of | the equipment or facilities at fair market value would
be | subject to review.
| "Capital expenditure minimum" means $6,000,000, which | shall be annually
adjusted to reflect the increase in | construction costs due to inflation, for major medical | equipment and for all other
capital expenditures; provided, | however, that when a capital expenditure is
for the |
| construction or modification of a health and fitness center, | "capital
expenditure minimum" means the capital expenditure | minimum for all other
capital expenditures in effect on March | 1, 2000, which shall be annually
adjusted to reflect the | increase in construction costs due to inflation.
| "Non-clinical service area" means an area (i) for the | benefit of the
patients, visitors, staff, or employees of a | health care facility and (ii) not
directly related to the | diagnosis, treatment, or rehabilitation of persons
receiving | services from the health care facility. "Non-clinical service | areas"
include, but are not limited to, chapels; gift shops; | news stands; computer
systems; tunnels, walkways, and | elevators; telephone systems; projects to
comply with life | safety codes; educational facilities; student housing;
| patient, employee, staff, and visitor dining areas; | administration and
volunteer offices; modernization of | structural components (such as roof
replacement and masonry | work); boiler repair or replacement; vehicle
maintenance and | storage facilities; parking facilities; mechanical systems for
| heating, ventilation, and air conditioning; loading docks; and | repair or
replacement of carpeting, tile, wall coverings, | window coverings or treatments,
or furniture. Solely for the | purpose of this definition, "non-clinical service
area" does | not include health and fitness centers.
| "Areawide" means a major area of the State delineated on a
| geographic, demographic, and functional basis for health | planning and
for health service and having within it one or | more local areas for
health planning and health service. The | term "region", as contrasted
with the term "subregion", and the | word "area" may be used synonymously
with the term "areawide".
| "Local" means a subarea of a delineated major area that on | a
geographic, demographic, and functional basis may be | considered to be
part of such major area. The term "subregion" | may be used synonymously
with the term "local".
| "Areawide health planning organization" or "Comprehensive | health
planning organization" means the health systems agency |
| designated by the
Secretary, Department of Health and Human | Services or any successor agency.
| "Local health planning organization" means those local | health
planning organizations that are designated as such by | the areawide
health planning organization of the appropriate | area.
| "Physician" means a person licensed to practice in | accordance with
the Medical Practice Act of 1987, as amended.
| "Licensed health care professional" means a person | licensed to
practice a health profession under pertinent | licensing statutes of the
State of Illinois.
| "Director" means the Director of the Illinois Department of | Public Health.
| "Agency" means the Illinois Department of Public Health.
| "Comprehensive health planning" means health planning | concerned with
the total population and all health and | associated problems that affect
the well-being of people and | that encompasses health services, health
manpower, and health | facilities; and the coordination among these and
with those | social, economic, and environmental factors that affect | health.
| "Alternative health care model" means a facility or program | authorized
under the Alternative Health Care Delivery Act.
| "Out-of-state facility" means a person that is both (i) | licensed as a
hospital or as an ambulatory surgery center under | the laws of another state
or that
qualifies as a hospital or an | ambulatory surgery center under regulations
adopted pursuant | to the Social Security Act and (ii) not licensed under the
| Ambulatory Surgical Treatment Center Act, the Hospital | Licensing Act, or the
Nursing Home Care Act. Affiliates of | out-of-state facilities shall be
considered out-of-state | facilities. Affiliates of Illinois licensed health
care | facilities 100% owned by an Illinois licensed health care | facility, its
parent, or Illinois physicians licensed to | practice medicine in all its
branches shall not be considered | out-of-state facilities. Nothing in
this definition shall be
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| construed to include an office or any part of an office of a | physician licensed
to practice medicine in all its branches in | Illinois that is not required to be
licensed under the | Ambulatory Surgical Treatment Center Act.
| "Change of ownership of a health care facility" means a | change in the
person
who has ownership or
control of a health | care facility's physical plant and capital assets. A change
in | ownership is indicated by
the following transactions: sale, | transfer, acquisition, lease, change of
sponsorship, or other | means of
transferring control.
| "Related person" means any person that: (i) is at least 50% | owned, directly
or indirectly, by
either the health care | facility or a person owning, directly or indirectly, at
least | 50% of the health
care facility; or (ii) owns, directly or | indirectly, at least 50% of the
health care facility.
| "Charity care" means care provided by a health care | facility for which the provider does not expect to receive | payment from the patient or a third-party payer.
| (Source: P.A. 93-41, eff. 6-27-03.)
| (20 ILCS 3960/8.5 new) | Sec. 8.5. Certificate of exemption for change of ownership | of a health care facility; public notice and public hearing. | (a) Upon a finding by the Department of Public Health that | an application for a change of ownership is complete, the | Department of Public Health shall publish a legal notice on 3 | consecutive days in a newspaper of general circulation in the | area or community to be affected and afford the public an | opportunity to request a hearing. If the application is for a | facility located in a Metropolitan Statistical Area, an | additional legal notice shall be published in a newspaper of | limited circulation, if one exists, in the area in which the | facility is located. If the newspaper of limited circulation is | published on a daily basis, the additional legal notice shall | be published on 3 consecutive days. The legal notice shall also | be posted on the Illinois Health Facilities Planning Board's |
| web site and sent to the State Representative and State Senator | of the district in which the health care facility is located. | The Department of Public Health shall not find that an | application for change of ownership of a hospital is complete | without a signed certification that for a period of 2 years | after the change of ownership transaction is effective, the | hospital will not adopt a charity care policy that is
more | restrictive than the policy in effect during the year prior to | the transaction. | For the purposes of this subsection, "newspaper of limited | circulation" means a newspaper intended to serve a particular | or defined population of a specific geographic area within a | Metropolitan Statistical Area such as a municipality, town, | village, township, or community area, but does not include | publications of professional and trade associations.
| (b) If a public hearing is requested, it shall be held at | least 15 days but no more than 30 days after the date of | publication of the legal notice in the community in which the | facility is located. The hearing shall be held in a place of | reasonable size and accessibility and a full and complete | written transcript of the proceedings shall be made. The | applicant shall provide a summary of the proposed change of | ownership for distribution at the public hearing.
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Effective Date: 1/1/2005
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