Public Act 093-0935
 
HB1086 Enrolled LRB093 05461 LRD 05552 b

    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    (Section scheduled to be repealed on July 1, 2008)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
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.

Effective Date: 1/1/2005