Illinois General Assembly - Full Text of Public Act 097-0980
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Public Act 097-0980


 

Public Act 0980 97TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 097-0980
 
HB4563 EnrolledLRB097 17230 PJG 62430 b

    AN ACT concerning State government.
 
    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 Sections 3, 13, and 14.1 as follows:
 
    (20 ILCS 3960/3)  (from Ch. 111 1/2, par. 1153)
    (Section scheduled to be repealed on December 31, 2019)
    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;
        3.5. Skilled and intermediate care facilities licensed
    under the ID/DD Community Care Act;
        3.7. Facilities licensed under the Specialized Mental
    Health Rehabilitation 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 required to be licensed
    under the End Stage Renal Disease Facility Act;
        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;
        7. An institution, place, building, or room used for
    provision of a health care category of service as defined
    by the Board, including, but not limited to, cardiac
    catheterization and open heart surgery; and
        8. An institution, place, building, or room used for
    provision of major medical equipment used in the direct
    clinical diagnosis or treatment of patients, and whose
    project cost is in excess of the capital expenditure
    minimum.
    This Act shall not apply to the construction of any new
facility or the renovation of any existing facility located on
any campus facility as defined in Section 5-5.8b of the
Illinois Public Aid Code, provided that the campus facility
encompasses 30 or more contiguous acres and that the new or
renovated facility is intended for use by a licensed
residential 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.
    No facility established and operating under the
Alternative Health Care Delivery Act as a children's respite
care center alternative health care model demonstration
program or as an Alzheimer's Disease Management Center
alternative health care model demonstration program shall be
subject to the provisions of this Act.
    A facility designated as a supportive living facility that
is in good standing with the program 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 does not apply to a dialysis facility that
provides only dialysis training, support, and related services
to individuals with end stage renal disease who have elected to
receive home dialysis. This Act does not apply to a dialysis
unit located in a licensed nursing home that offers or provides
dialysis-related services to residents with end stage renal
disease who have elected to receive home dialysis within the
nursing home. The Board, however, may require these dialysis
facilities and licensed nursing homes to report statistical
information on a quarterly basis to the Board to be used by the
Board to conduct analyses on the need for proposed kidney
disease treatment centers.
    This Act shall not apply to the closure of an entity or a
portion of an entity licensed under the Nursing Home Care Act,
the Specialized Mental Health Rehabilitation Act, or the ID/DD
MR/DD Community Care Act, with the exceptions of facilities
operated by a county or Illinois Veterans Homes, 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.
    This Act does not apply to any change of ownership of a
healthcare facility that is licensed under the Nursing Home
Care Act, the Specialized Mental Health Rehabilitation Act, or
the ID/DD Community Care Act, with the exceptions of facilities
operated by a county or Illinois Veterans Homes. Changes of
ownership of facilities licensed under the Nursing Home Care
Act must meet the requirements set forth in Sections 3-101
through 3-119 of the Nursing Home Care 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.
    No permit or exemption is required for a facility licensed
under the ID/DD Community Care Act prior to the reduction of
the number of beds at a facility. If there is a total reduction
of beds at a facility licensed under the ID/DD Community Care
Act, this is a discontinuation or closure of the facility.
However, if a facility licensed under the ID/DD Community Care
Act reduces the number of beds or discontinues the facility,
that facility must notify the Board as provided in Section 14.1
of this Act.
    "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" or "Board" means the Health Facilities and
Services Review 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 (i) the
construction or modification of a facility licensed under the
Assisted Living and Shared Housing Act or (ii) a conversion
project undertaken in accordance with Section 30 of the Older
Adult Services 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 or the initiation of a category of service as defined by
the Board.
    "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. Unless otherwise interdependent, or
submitted as one project by the applicant, components of
construction or modification undertaken by means of a single
construction contract or financed through the issuance of a
single debt instrument shall not be grouped together as one
project. 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 $11,500,000 for
projects by hospital applicants, $6,500,000 for applicants for
projects related to skilled and intermediate care long-term
care facilities licensed under the Nursing Home Care Act, and
$3,000,000 for projects by all other applicants, 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.
    "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".
    "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.
    "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.
    "Freestanding emergency center" means a facility subject
to licensure under Section 32.5 of the Emergency Medical
Services (EMS) Systems Act.
(Source: P.A. 96-31, eff. 6-30-09; 96-339, eff. 7-1-10;
96-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-277, eff. 1-1-12;
revised 9-7-11.)
 
    (20 ILCS 3960/13)  (from Ch. 111 1/2, par. 1163)
    (Section scheduled to be repealed on December 31, 2019)
    Sec. 13. Investigation of applications for permits and
certificates of recognition. The Agency or the State Board
shall make or cause to be made such investigations as it or the
State Board deems necessary in connection with an application
for a permit or an application for a certificate of
recognition, or in connection with a determination of whether
or not construction or modification which has been commenced is
in accord with the permit issued by the State Board or whether
construction or modification has been commenced without a
permit having been obtained. The State Board may issue
subpoenas duces tecum requiring the production of records and
may administer oaths to such witnesses.
    Any circuit court of this State, upon the application of
the State Board or upon the application of any party to such
proceedings, may, in its discretion, compel the attendance of
witnesses, the production of books, papers, records, or
memoranda and the giving of testimony before the State Board,
by a proceeding as for contempt, or otherwise, in the same
manner as production of evidence may be compelled before the
court.
    The State Board shall require all health facilities
operating in this State to provide such reasonable reports at
such times and containing such information as is needed by it
to carry out the purposes and provisions of this Act. Prior to
collecting information from health facilities, the State Board
shall make reasonable efforts through a public process to
consult with health facilities and associations that represent
them to determine whether data and information requests will
result in useful information for health planning, whether
sufficient information is available from other sources, and
whether data requested is routinely collected by health
facilities and is available without retrospective record
review. Data and information requests shall not impose undue
paperwork burdens on health care facilities and personnel.
Health facilities not complying with this requirement shall be
reported to licensing, accrediting, certifying, or payment
agencies as being in violation of State law. Health care
facilities and other parties at interest shall have reasonable
access, under rules established by the State Board, to all
planning information submitted in accord with this Act
pertaining to their area.
    Among the reports to be required by the State Board are
facility questionnaires for health care facilities licensed
under the Ambulatory Surgical Treatment Center Act, the
Hospital Licensing Act, the Nursing Home Care Act, the ID/DD
Community Care Act, the Specialized Mental Health
Rehabilitation Act, or the End Stage Renal Disease Facility
Act. These questionnaires shall be conducted on an annual basis
and compiled by the Agency. For health care facilities licensed
under the Nursing Home Care Act or , the Specialized Mental
Health Rehabilitation Act, or the ID/DD Community Care Act,
these reports shall include, but not be limited to, the
identification of specialty services provided by the facility
to patients, residents, and the community at large. Annual
reports for facilities licensed under the ID/DD Community Care
Act shall be different from the annual reports required of
other health care facilities and shall be specific to those
facilities licensed under the ID/DD Community Care Act. The
Health Facilities and Services Review Board shall consult with
associations representing facilities licensed under the ID/DD
Community Care Act when developing the information requested in
these annual reports. For health care facilities that contain
long term care beds, the reports shall also include the number
of staffed long term care beds, physical capacity for long term
care beds at the facility, and long term care beds available
for immediate occupancy. For purposes of this paragraph, "long
term care beds" means beds (i) licensed under the Nursing Home
Care Act, (ii) licensed under the ID/DD Community Care Act,
(iii) licensed under the Hospital Licensing Act, or (iv)
licensed under the Specialized Mental Health Rehabilitation
Act and certified as skilled nursing or nursing facility beds
under Medicaid or Medicare.
(Source: P.A. 96-339, eff. 7-1-10; 97-38, eff. 6-28-11; 97-227,
eff. 1-1-12; revised 9-7-11.)
 
    (20 ILCS 3960/14.1)
    Sec. 14.1. Denial of permit; other sanctions.
    (a) The State Board may deny an application for a permit or
may revoke or take other action as permitted by this Act with
regard to a permit as the State Board deems appropriate,
including the imposition of fines as set forth in this Section,
for any one or a combination of the following:
        (1) The acquisition of major medical equipment without
    a permit or in violation of the terms of a permit.
        (2) The establishment, construction, or modification
    of a health care facility without a permit or in violation
    of the terms of a permit.
        (3) The violation of any provision of this Act or any
    rule adopted under this Act.
        (4) The failure, by any person subject to this Act, to
    provide information requested by the State Board or Agency
    within 30 days after a formal written request for the
    information.
        (5) The failure to pay any fine imposed under this
    Section within 30 days of its imposition.
    (a-5) For facilities licensed under the ID/DD Community
Care Act, no permit shall be denied on the basis of prior
operator history, other than for actions specified under item
(2), (4), or (5) of Section 3-117 of the ID/DD Community Care
Act. For facilities licensed under the Specialized Mental
Health Rehabilitation Act, no permit shall be denied on the
basis of prior operator history, other than for actions
specified under item (2), (4), or (5) of Section 3-117 of the
Specialized Mental Health Rehabilitation Act. For facilities
licensed under the Nursing Home Care Act, no permit shall be
denied on the basis of prior operator history, other than for:
(i) actions specified under item (2), (3), (4), (5), or (6) of
Section 3-117 of the Nursing Home Care Act; (ii) actions
specified under item (a)(6) of Section 3-119 of the Nursing
Home Care Act; or (iii) actions within the preceding 5 years
constituting a substantial and repeated failure to comply with
the Nursing Home Care Act or the rules and regulations adopted
by the Department under that Act. The State Board shall not
deny a permit on account of any action described in this
subsection (a-5) without also considering all such actions in
the light of all relevant information available to the State
Board, including whether the permit is sought to substantially
comply with a mandatory or voluntary plan of correction
associated with any action described in this subsection (a-5).
    (b) Persons shall be subject to fines as follows:
        (1) A permit holder who fails to comply with the
    requirements of maintaining a valid permit shall be fined
    an amount not to exceed 1% of the approved permit amount
    plus an additional 1% of the approved permit amount for
    each 30-day period, or fraction thereof, that the violation
    continues.
        (2) A permit holder who alters the scope of an approved
    project or whose project costs exceed the allowable permit
    amount without first obtaining approval from the State
    Board shall be fined an amount not to exceed the sum of (i)
    the lesser of $25,000 or 2% of the approved permit amount
    and (ii) in those cases where the approved permit amount is
    exceeded by more than $1,000,000, an additional $20,000 for
    each $1,000,000, or fraction thereof, in excess of the
    approved permit amount.
        (3) A person who acquires major medical equipment or
    who establishes a category of service without first
    obtaining a permit or exemption, as the case may be, shall
    be fined an amount not to exceed $10,000 for each such
    acquisition or category of service established plus an
    additional $10,000 for each 30-day period, or fraction
    thereof, that the violation continues.
        (4) A person who constructs, modifies, or establishes a
    health care facility without first obtaining a permit shall
    be fined an amount not to exceed $25,000 plus an additional
    $25,000 for each 30-day period, or fraction thereof, that
    the violation continues.
        (5) A person who discontinues a health care facility or
    a category of service without first obtaining a permit
    shall be fined an amount not to exceed $10,000 plus an
    additional $10,000 for each 30-day period, or fraction
    thereof, that the violation continues. For purposes of this
    subparagraph (5), facilities licensed under the Nursing
    Home Care Act or the ID/DD Community Care Act, with the
    exceptions of facilities operated by a county or Illinois
    Veterans Homes, are exempt from this permit requirement.
    However, facilities licensed under the Nursing Home Care
    Act or the ID/DD Community Care Act must comply with
    Section 3-423 of the Nursing Home Care Act or Section 3-423
    of the ID/DD Community Care Act and must provide the Board
    and the Department of Human Services with 30 days' 30-days'
    written notice of its intent to close. Facilities licensed
    under the ID/DD Community Care Act also must provide the
    Board and the Department of Human Services with 30 days'
    written notice of its intent to reduce the number of beds
    for a facility.
        (6) A person subject to this Act who fails to provide
    information requested by the State Board or Agency within
    30 days of a formal written request shall be fined an
    amount not to exceed $1,000 plus an additional $1,000 for
    each 30-day period, or fraction thereof, that the
    information is not received by the State Board or Agency.
    (c) Before imposing any fine authorized under this Section,
the State Board shall afford the person or permit holder, as
the case may be, an appearance before the State Board and an
opportunity for a hearing before a hearing officer appointed by
the State Board. The hearing shall be conducted in accordance
with Section 10.
    (d) All fines collected under this Act shall be transmitted
to the State Treasurer, who shall deposit them into the
Illinois Health Facilities Planning Fund.
(Source: P.A. 96-339, eff. 7-1-10; 96-1372, eff. 7-29-10;
97-38, eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-7-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/17/2012