Section 976.10 Definitions
"Act" means Section
2310-640 of the Department of Public Health Powers and Duties Law.
"Ambulatory Surgical
Treatment Center" means any institution, place or building licensed
pursuant to the Ambulatory Surgical Treatment Center Act.
"Architectural and
Engineering Costs" means the costs associated with the development and
implementation of drawings and design materials for a project.
"Authorized Beds" means
the number of beds recognized at a hospital as reflected in the Inventory of
Health Care Facilities and Services and Need Determinations from the Health
Facilities and Services Review Board (see 77 Ill. Adm. Code 1100.220).
"Calendar Day" means all
days in a month or prescribed time frame, including weekends and holidays.
"Capital Expenditure"
means an expenditure that creates a future benefit. A capital expenditure
occurs when an entity acquires an asset or adds to the value of an existing
asset with a useful life that is beyond one year. Under generally accepted
accounting principles, capital expenditures are costs that cannot be deducted
in the year in which the asset was acquired. If the asset has a useful life
longer than one year, the capital expenditure cost is depreciated over the life
of the asset.
"Capital Lease" means a
lease that is recognized as an asset and liability. Under generally accepted
accounting principles, this applies to leases through which the entity acquires
all of the economic benefits and risks of the leased asset.
"Cash and Equivalents"
means the most liquid assets in the balance sheet. Equivalents are securities
with maturities of less than three months and can be sold with little or no loss
of value.
"Case Mix Index" for a
hospital shall mean either the case mix index used in Section 5A-12.2(n) of the
Illinois Public Aid Code or the case mix index used under the federal Medicare
program as specified in the Final Rule entitled, "Medicare Program:
Changes to the Hospital Inpatient Prospective Payment Systems and Fiscal Year
2009 Rates" published in the Federal Register on August 19, 2008,
whichever is greater.
"Category of Service"
shall have the meaning ascribed in the Health Facilities and Services Review
Board's rules (see 77 Ill. Adm. Code 1100.220).
"Certificate of Exemption"
or "COE" is an exemption issued by the Health Facilities and Services
Review Board for construction or modification of a health care facility.
"Certificate of Need" or
"CON" is a permit issued by the Health Facilities and Services Review
Board for construction or modification of a health care facility.
"Change of Ownership"
shall have the meaning ascribed in the Health Facilities and Services Review
Board's rules (see 77 Ill. Adm. Code 1130.140).
"Changes the Bed Capacity of
Health Care Facility" means increasing the total number of beds or by
distributing beds among various categories of service or by relocating beds
from one physical facility or site to another by more than 20 beds or more than
10% of total bed capacity, whichever is less. (Section 5(c) of the Illinois Health Facilities Planning Act)
"Children's Hospital"
means a hospital that is devoted exclusively to care for children (see 89 Ill.
Adm. Code 149.50(c)(3)(A)).
"Clinical Service Area"
shall have the meaning ascribed in the Health Facilities and Services Review
Board's rules (see 77 Ill. Adm. Code 1130.140).
"Construction" or "Modernization"
means the establishment, building, alteration, reconstruction, modernization,
or improvement of a hospital.
"Construction Costs" or "Modernization
Costs" means expenses from a construction contract.
"Contingencies" means an
allowance for unforeseeable events relating to the construction or
modernization component of a project.
"Control" shall have the
meaning ascribed in the Health Facilities and Services Review Board's rules
(see 77 Ill. Adm. Code 1130.140).
"Debt Financing" means
all or a portion of a project's costs financed through borrowing. For purposes
of this Part, leasing is considered borrowing.
"Department" means
the Department of Public Health. (Section 2310-5 of the Department
of Public Health Powers and Duties Law)
"Depreciation" means the
reduction in the balance sheet value of an asset to reflect its loss of value
through age and use.
"Depreciation Schedule"
means the annual apportionment of the depreciable cost of an asset to future
accounting periods.
"Discontinue" shall have
the meaning ascribed in the Health Facilities and Services Review Board's rules
(see 77 Ill. Adm. Code 1130.140).
"Director" means the Director
of Public Health. (Section 2310-5 of the Department of Public Health Powers
and Duties Law)
"Due Diligence" means to
take action toward the completion of a project with the diligence and foresight
that persons of ordinary prudence and care would exercise under similar
circumstances.
"Establish" or "Establishment"
shall have the meaning ascribed in the Health Facilities and Services Review
Board's rules (see 77 Ill. Adm. Code 1130.140).
"Estimated Total Project Cost"
means all of the capital expenditures required to complete a project.
"Equipment Cost" means
the cost of movable equipment, including movable medical equipment, and the
cost of making this equipment operational (e.g., installation costs).
"General Acute Care Hospital"
shall have the meaning ascribed in both Section 5A-12.2 of the Illinois
Public Aid Code (Section 2310-640(e) of the Act) and the Illinois
Department of Healthcare and Family Services' rules (see 89 Ill. Adm. Code
148.458(a)).
"Grant Agreement" means
the agreement entered into between the Department and the grantee setting forth
the terms and conditions of a grant award.
"Grant Funds" means
public funds dispensed by the Department to any person or entity for
obligation, capital expenditure, or use for a specific purpose.
"Grantee" means a
recipient of a grant under this Part.
"Hospital" shall have
the meaning ascribed in Section 3 of the Hospital Licensing Act, but in
no event shall it include a hospital owned or operated by a State agency, a State
university, or a county with a population of 3,000,000 or more. (Section
2310-640(e) of the Act)
"Hospital System" means
a group of hospitals, facilities and organizations engaged in providing health
care within a geographical area.
"Medicaid Inpatient Day"
shall have the meaning ascribed in Section 5A-12.2(n) of the Illinois Public Aid Code. (Section 2310-640(e) of the Act)
"Medicaid Inpatient Utilization
Rate" shall have the meaning ascribed in 89 Ill. Adm. Code
148.20(i)(4) for the rate year beginning on October 1, 2008. (Section
2310-640(e) of the Act)
"Not-for-Profit Hospital" means a hospital that is subject to Sections 101.80(m) and 103.05(a) of the
General Not For Profit Corporation Act of 1986.
"Obligation" or "Obligated"
means that the project has commenced and is proceeding with due diligence and
that the grantee is meeting the time frame requirements outlined in the grant
application and in Section 976.190.
"Preplanning Costs"
means costs incurred prior to the commencement of a project, including bid
solicitations, legal fees, and feasibility studies.
"Project Completion"
means that the project has been brought to a conclusion based on the objectives
in the grant application and has met all applicable requirements of the
Hospital Licensing Act and the Illinois Health Facilities Planning Act.
"Public Hospital" means
a hospital owned by a Hospital District or other public agency (see Section
3(b) of the Hospital District Law).
"Rural" shall have
the meaning ascribed in 89 Ill. Adm. Code 148.25(g)(3).
(Section 2310-640(e) of the Act)
"Scrap Value" means the
minimal worth of an asset after it is depreciated.
"Site Preparation" means
costs for the preparation of a site for construction or modernization,
including site drainage, utilities, demolition of existing structures,
clearing, grading, and earthwork.
"Substantially Changes the
Scope or Changes the Functional Operation of the Facility" shall have the
meaning ascribed in the Health Facilities and Services Review Board's rules
(see 77 Ill. Adm. Code 1130.140).
"Urban" shall have
the meaning ascribed in 89 Ill. Adm. Code 148.25(g)(4).
(Section 2310-640(e) of the Act)
 |
TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.20 REFERENCED MATERIALS
Section 976.20 Referenced
Materials
The following materials are
referenced in this Part:
a) Illinois Statutes
1) Department of Public Health Powers and Duties Law [20 ILCS 2310/2310-640]
2) Hospital Licensing Act [210 ILCS 85]
3) Illinois Health Facilities Planning Act [20 ILCS 3960]
4) Illinois Public Aid Code [305 ILCS 5]
5) Hospital
District Law [70 ILCS 910]
6) General
Not For Profit Corporation Act of 1986 [805 ILCS 105]
7) Illinois Administrative Procedure Act [5 ILCS 100]
8) Ambulatory
Surgical Treatment Center Act [210 ILCS 5]
9) Freedom
of Information Act [5 ILCS 140]
10) Administrative Review Law [735 ILCS 5/Art. III]
b) Illinois Administrative Rules
1) Practice and Procedure in Administrative Hearings (77 Ill.
Adm. Code 100)
2) Hospital Licensing Requirements (77 Ill. Adm. Code 250)
3) Narrative and Planning Policies (77 Ill. Adm. Code 1100)
4) Processing, Classification Policies and Review Criteria (77 Ill.
Adm. Code 1110)
5) Health Facilities Planning Procedural Rules (77 Ill.
Adm. Code 1130)
6) Hospital Services (89 Ill. Adm. Code 148)
7) Diagnosis Related Grouping (DRG) Prospective Payment System (PPS)
(89 Ill. Adm. Code 149)
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.30 ADMINISTRATIVE HEARINGS
Section 976.30 Administrative
Hearings
Administrative hearings
conducted concerning the provisions of this Part shall be governed by the
Department's Practice and Procedure in Administrative Hearings.
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.40 FREEDOM OF INFORMATION
Section 976.40 Freedom of
Information
The provisions of the Freedom of
Information Act shall apply to this Part.
SUBPART B: SAFETY NET HOSPITAL GRANTS AND COMMUNITY HOSPITAL GRANTS
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.50 GRANT DESCRIPTIONS
Section 976.50 Grant
Descriptions
a) Grants provided to hospitals under this Part can be used only
to fund capital projects, including:
1) to satisfy any building code, safety standard or life
safety code;
2) to maintain, improve, renovate, expand or construct
buildings or structures;
3) to maintain, establish or improve medical
equipment or health information technology; or
4) to maintain or improve patient safety, quality of care or
access to care. (Section 2310-640(a) of the Act)
b) The Department shall make grants to hospitals that meet the
eligibility requirements of Section 976.60.
1) General
acute care hospitals qualifying under Section 976.60(a)(1) and/or (a)(2) will
receive $7,000,000. General acute care hospitals qualifying under Section
976.60(a)(3), (a)(4) and/or (a)(5) will receive $4,600,000.
2) General
acute care hospitals that qualify for community hospital grants will receive:
A) Either:
i) $170,000
if the hospital is located in an urban area; or
ii) $340,000
if the hospital is located in a rural area; and
B) a
payment equal to the product of $45 multiplied by the total Medicaid
inpatient days. (Section 2310-640(c) of the Act)
c) Grants awarded through
this program cannot be:
1) used
to pay for any on-going operational costs;
2) used to
pay outstanding debt; or
3) allocated
to an endowment or otherwise invested fund. (Section 2310-640(a) of the
Act)
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.60 GRANT ELIGIBILITY
Section 976.60 Grant Eligibility
To be eligible to apply for a grant, a hospital shall either
meet one of the requirements in subsection (a) or the requirements of
subsection (b) and shall meet the requirement of subsection (c).
a) To be
eligible to apply for a Safety Net Hospital Grant, a hospital shall be one of
the following:
1) Any
general acute care hospital located in a county of over 3,000,000 inhabitants
that has a Medicaid inpatient utilization rate for the rate year beginning
October 1, 2008 greater than 43%, that is not affiliated with a hospital system
that owns or operates more than 3 hospitals, and that has more than 13,500
Medicaid inpatient utilization days (Section 2310-640(b)(1) of the Act);
2) Any
general acute care hospital that is located in a county of more than 3,000,000
inhabitants and has a Medicaid inpatient utilization rate for the rate year
beginning on October 1, 2008 greater than 55% and has authorized beds for the
obstetric-gynecology category of service as reported in the 2008 Annual
Hospital Bed Report, issued by the Illinois Department of Public Health
(Section 2310-640(b)(2) of the Act);
3) Any
hospital that is defined in 89 Ill. Adm. Code 149.50(c)(3)(A) and that
has less than 20,000 Medicaid inpatient days (Section 2310-640(b)(3) of the
Act);
4) Any
general acute care hospital that is located in a county of less than 3,000,000
inhabitants and has a Medicaid inpatient utilization rate for the rate year
beginning on October 1, 2008 greater than 64% (Section 2310-640(b)(4) of
the Act); or
5) Any
general acute care hospital that is located in a county of over 3,000,000
inhabitants and a city of less than 1,000,000 inhabitants, that has a Medicaid
inpatient utilization rate for the rate year beginning October 1, 2008 greater
than 22%, that has more than 12,000 Medicaid inpatient days, and has a case mix
index greater than 0.71 (Section 2310-640(b)(5) of the Act).
b) Community
Hospital Grants. The Department will make capital grants to any public or
not-for-profit hospitals that:
1) are located
in counties of less than 3,000,000 inhabitants and that are not
otherwise eligible for a Safety Net Hospital grant; and
2) have
a Medicaid inpatient utilization rate for the rate year beginning on October 1,
2008 of at least 10%. (Section 2310-640(c) of the Act)
c) A
hospital that applies for a grant under this Part shall be licensed by the
Illinois Department of Public Health in accordance with the Hospital Licensing
Act. The license shall be valid and the hospital shall be in operation when
the grant application is submitted, when the grant agreement is executed and
when the project is complete.
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.70 GRANT APPLICATION REQUIREMENTS
Section 976.70 Grant Application Requirements
Grant applications shall contain the following:
a) General Information
1) Project
Summary. The applicant shall provide a description of the project, including
the project's needs and expected accomplishments. The summary shall also
provide a description of the resources, both available and needed, for the
project.
2) Project
Narrative. The narrative shall state the need for the project, the expected
impact on hospital operations, and the anticipated population to be served.
The narrative shall also address any of the following (as applicable):
A) Projects
to satisfy any building code, safety standard or life safety code;
B) Projects
to maintain, improve, renovate, expand or construct buildings or structures;
C) Projects
to improve, replace or acquire equipment;
D) Projects
to maintain, establish or improve health information technology;
E) Projects
to maintain or improve patient safety;
F) Projects
to maintain or improve quality of care; or
G) Projects
to maintain or improve access to care. (Section 2310-640(a) of the Act)
3) Project
Objectives. The applicant shall document the measurable objectives that the
project will accomplish. Once the objectives are identified, the applicant
shall describe the implementation plan for the objectives and a timetable for
achievement of the objectives.
4) Project
Budget. The applicant shall list the total dollar amount needed for the
project, including the amount to be provided by the hospital and other funding
sources and the amount of funding requested through the grant. In the budget,
the applicant shall identify all revenue sources and amounts and provide budget
estimates, including capital expenditures for the duration of the project.
A) The
project's budget could include, for example, the following costs:
i) Architectural
and engineering;
ii) Construction
or modernization;
iii) Contingencies;
iv) Debt
financing (including the cost of leased assets);
v) Equipment;
vi) Preplanning;
vii) Site
preparation.
B) The
applicant shall also provide the sources of funds for the project. This could
include, for example, the following:
i) Cash
and equivalents. The applicant shall document that cash is held in reserve and
will be used for the project.
ii) Debt
financing. Documentation shall include a commitment letter from the applicant's
financial institution attesting that financing is available.
iii) Government
appropriations. The applicant shall furnish a copy of the statute or ordinance
that documents that an appropriation was awarded.
iv) Other
sources. The applicant shall document the amount and type of other funds
(e.g., pledges, gifts and grants) available.
C) The
cost of the project shall equal or exceed the amount of grant funding
requested.
5) Budget
Narrative. The applicant shall provide a description of all amounts included
in the project's budget. This narrative shall describe the relationship
between the funding request and the project's goals and objectives.
b) For
projects that involve construction or modernization, the applicant shall
document that the project will result in the renovation, replacement or
expansion of facilities. Documentation shall consist of:
1) Hospital
Licensing Act requirements that mandate the construction or modernization;
2) Illinois administrative rules that mandate the construction or modernization;
3) Building,
fire or life safety code standards that mandate the construction or
modernization;
4) Expansion
of treatment, training or other support services that is necessary to meet the
requirements of existing services;
5) Requirements
for increased access to care, quality of care, or patient safety; and
6) Requirements
for improved or enhanced operational efficiency.
c) For
projects that involve replacing or acquiring medical equipment, the applicant
shall document the following:
1) The
type of equipment being acquired;
2) Anticipated
benefits that the new equipment will provide;
3) The age
of the current equipment being replaced;
4) Down
time or time spent out of service due to operational failures of the current
equipment;
5) Upkeep
and annual maintenance costs of the current equipment; and
6) Equipment
that has expended its useful life (documentation shall consist of the grantee's
most recent depreciation schedule that demonstrates that the equipment is
totally depreciated and only scrap value remains).
d) For
projects that involve replacing or acquiring information technology, the
applicant shall document the following:
1) The
type of new technology being acquired;
2) Anticipated
benefits that the new technology will provide;
3) The
purpose of or need for the new technology;
4) The
life cycle of the new technology; and
5) The
cost savings or cost avoidance (if any) of implementing the new technology.
e) The
applicant shall document that the project does (or does not) require a CON or a
COE from the Health Facilities and Services Review Board. Documentation shall
consist of the following:
1) For
projects that do not require a CON or COE, the applicant shall document that
the project does not include any of the items listed in the CON/COE Assessment
of Applicability referenced in Section 976.100(a)(8).
2) For
projects that require a CON or COE, the applicant shall document that an
application has been (or will be) submitted to the Health Facilities and
Services Review Board. In accordance with Section 976.120(b), projects
eligible for a grant that also require a CON or COE will be issued contingent
awards until the CON or COE is obtained.
f) Licensure
Requirement. The applicant shall document that the project does (or does not)
require a licensure review from the Department's hospital licensing program.
Documentation shall consist of one of the following:
1) For
projects that do not require a review, the application shall contain a letter
from the Department stating that licensure review is unnecessary.
2) For
projects that require a review, the applicant shall provide documentation that
the Department has received and accepted the project for licensure review and
that a project tracking number has been issued.
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.80 GRANT APPLICATION REVIEW CRITERIA
Section 976.80 Grant Application Review Criteria
a) In
awarding grants, the Department shall consider criteria that include but are
not limited to:
1) financial
requirements of the project and the extent to which the grant makes it possible
to implement the project;
2) the
proposed project's likely benefit in terms of patient safety or quality of
care; and
3) the
proposed project's likely benefit in terms of maintaining or improving access
to care. (Section 2310-640(a) of the Act)
b) The
Department shall determine eligible project costs, including but not limited to
the use of funds for the acquisition, development, construction,
reconstruction, rehabilitation, improvement, architectural planning,
engineering, and installation of capital facilities consisting of buildings,
structures, technology and durable equipment for hospital purposes.
(Section 2310-640(a) of the Act) (See Sections 976.10 and 976.70(a)(4)(A).)
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.90 NOTICE OF GRANT OPPORTUNITY
Section 976.90 Notice of Grant Opportunity
a) The
Department will publish a notice announcing the grant opportunity in the
official State newspaper. A notice will also be posted on the Department's web
site. This notice shall consist of at least the following elements:
1) Instructions
on fulfilling the Letter of Intent requirements (see Section 976.100);
2) Identification
of the grant opportunity, including a brief description of the program and the
date that grant applications can be submitted to the Department;
3) Identification,
including mailing address and telephone number, of the Department's unit or
section that is responsible for the grant program; and
4) Information
regarding where a copy of the application may be viewed by the public and how
copies of the application may be obtained.
b) As
stated in the notice, a letter of intent shall be filed with the Department at
least 10 calendar days prior to the submission of an application. Applicants
will have 120 calendar days to submit applications for grant funding. The 120
calendar day time frame begins on the date of publication of the notice.
Applications received after the 120 calendar day time frame will not be
processed and reviewed.
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.100 LETTER OF INTENT
Section 976.100 Letter of Intent
Prior to submitting a grant application, an applicant shall
submit a letter of intent (LOI) to the Department.
a) The
LOI shall be received at least 10 calendar days prior to the submission of a
grant application and shall contain the following:
1) The
name of the applicant;
2) The
name of the hospital where grant funds will be used;
3) The
site of the proposed project, including the address of the hospital where grant
funds will be used;
4) The county
where the hospital is located;
5) A
description of the project;
6) The
hospital's Medicaid inpatient utilization rate for the rate year beginning
October 1, 2008;
7) The
signature and contact information of an authorized official from the hospital; and
8) Information
on whether the project requires a CON or COE from the Health Facilities and
Services Review Board. The CON/COE Assessment of Applicability Internet site
can assist in this determination:
http://www.hfsrb.illinois.gov/pdf/checklist-revised.doc
b) The LOI is valid for one
year from the date of receipt by the Department.
c) The
Department will review the LOI to ensure that all requirements of this Section
are included. If all requirements are not included, the Department will
contact the applicant and request a revised LOI.
d) Once
an LOI has been submitted that meets all of the stated requirements, the
Department will determine if the applicant is eligible to apply. The
Department will contact the applicant with its determination.
e) The
date the Department determines that the LOI fulfills the requirements of this Section
shall be the date the 10 calendar day time frame will commence.
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.110 GRANT APPLICATION PROCESSING
Section 976.110 Grant Application Processing
When an LOI fulfills all of the requirements of Section
976.100, a grant application can be submitted.
a) Upon receipt of a grant
application, the Department will:
1) Determine
if the application was submitted within the time frame requirements of Section
976.90. An application that was not submitted within the prescribed time frame
will be deemed null and void.
2) Within
30 calendar days after receipt of the application, conduct a completeness
determination to assess whether all applicable review information and all
required materials and documentation have been submitted (see Section 976.70).
A) If the
application is deemed complete, the Department will proceed with a grant award
(see Section 976.120).
B) If the
application is deemed incomplete, the Department will contact the applicant in
writing (via a certified letter) and inform the applicant of the information
and/or materials needed to complete the application. The applicant will have
30 calendar days (from the date that the applicant received the certified
letter) to provide the requested information. Responses received after the 30
calendar day time frame will result in the application being deemed null and
void.
b) Review of Applications
1) All
applications will be reviewed and evaluated with the review criteria set forth
in the Act and in this Part (see Section 976.80).
2) Each
application will be reviewed on an individual basis. There will be no
comparative review of applications.
3) Based
on the eligibility requirements in Section 2310-640(b) and (c) of the Act, only
one application per hospital will be approved.
c) If an
applicant files the letter of intent and grant application and applies for or
has received a Certificate of Need or Certificate of Exemption from the
Illinois Health Facilities and Services Review Board for a change of ownership
(see 77 Ill. Adm. Code 1110.240 and 1130.520), the applicant shall modify the
letter of intent and grant application to reflect the ownership change. These
modifications shall be completed before a grant award is issued (see Section
976.120 of this Part).
(Source: Amended at 35 Ill.
Reg. 19254, effective November 2, 2011)
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.120 GRANT AWARDS
Section 976.120 Grant Awards
a) Applicants
whose applications are deemed complete and in compliance with all applicable
requirements of this Part will be awarded a grant. The amount of a grant will
be based on the criteria specified in Sections 976.50 and 976.70(a)(4).
b) Applicants
whose applications are deemed complete and in compliance with all applicable
requirements of this Part and are also subject to the requirements of the
Health Facilities Planning Act will be awarded a grant contingent on the
issuance of a CON or COE from the Health Facilities and Services Review Board.
When an applicant receives a contingent grant award but does not receive the
CON or COE, the grant award will be voided. Should a grant award be voided, a
hospital can apply for a new grant award (subject to the requirements of
Sections 976.60 through 976.110). Should a new grant application also be
subject to the requirements of the Illinois Health Facilities Planning Act, a
grant award will be contingent on the issuance of a CON or COE.
c) The
Department and grantee will enter into a grant agreement that will describe the
requirements that the grantee shall fulfill based on the goals and objectives
in the application.
d) Grants
are valid for three years from the date the agreement is executed, and projects
shall be completed within this time frame. If a project cannot be completed
within this time frame, the agreement can be amended to provide an extension to
complete the project. The grantee shall submit a written request for the
extension and include the following:
1) Documentation
that grant funds have been obligated;
2) Explanation
of why the project cannot be completed as planned; and
3) Documentation
that financial resources are available to complete the project.
e) An
extension request shall be received by the Department at least 60 calendar days
prior to the agreement's expiration date. The Department will review the
extension request and modify the agreement's completion date accordingly. If the
grantee has not obligated the project or has not proceeded with due diligence,
the extension will not be granted, and the funds awarded shall immediately be
remitted to the Department.
f) Grantees
whose projects receive an extension of the required completion date and are
subject to CON requirements shall also document that the project received a
permit renewal from the Health Facilities and Services Review Board (see 77
Ill. Adm. Code 1130.740).
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.130 GRANT FUNDS DISTRIBUTION
Section 976.130 Grant Funds Distribution
a) Funds
will be released by the Department to grantees proportionate to the amount of
funds appropriated and available each fiscal year. Grantees will receive a
percentage of the total funds awarded that is in proportion to the funding made
available to the Department each fiscal year. Percentage calculations will be
determined by dividing the amount of funding released in a fiscal year into the
total amount of funding that will be awarded over the duration of the program.
b) Any
funding commitments of the Department to the grantee will cease if the Illinois
General Assembly fails to appropriate sufficient funds for the program.
c) Grants will be made to
eligible applicants upon availability of funds annually.
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.140 GRANT FUNDS RECOVERY
Section 976.140 Grant Funds Recovery
a) If
the grantee fails to comply with this Part or the terms of the grant agreement
or upon the Department's determination that grant funds have been misused or
misspent, the grantee immediately shall repay to the Department all monies
disbursed to the grantee under the Hospital Capital Investment program.
b) A breach of the grant
agreement shall include, but not be limited to, the following:
1) Failure to complete
the project as approved (see Section 976.150(d));
2) Failure to obligate
the project (see Sections 976.150(c) and 976.160);
3) The
assignment or transfer of the grant agreement to another entity (see Section
976.150(e));
4) Material
misstatement in reporting information to the Department;
5) Material
misrepresentation to the Department for the purpose of obtaining a grant.
c) Misused
or misspent grant funds shall include, but not be limited to, the following:
1) Expending
funds on a project component or activity that was not approved in the grant
agreement;
2) Expending
funds on a component or activity that was not part of the project and that was
not approved in the grant agreement.
d) If
the grantee does not repay all funds owed to the Department, the Department
shall refer the matter to the Illinois Attorney General for resolution.
e) A
grantee may seek judicial review of the Department's determination under the
provisions of the Administrative Review Law [735 ILCS 5/Art. III].
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.150 GRANT VALIDITY
Section 976.150 Grant Validity
a) Grants
are effective on the date that an agreement is executed between the Department
and the grantee.
b) A
grant is valid for three years from the date the agreement is executed,
provided that:
1) Obligation
of the project occurs; and
2) The
project commenced and proceeds to completion with due diligence.
c) The
Department will deem a grant agreement null and void if the grantee does not
obligate the grant funds (see Section 976.160) or if the grantee does not
proceed with due diligence. If the grant agreement is voided, the grantee
shall immediately remit to the Department all grant funds awarded.
d) Grants
are valid only for the approved construction or modernization, equipment,
information technology, amount, and hospital named in the application.
e) Grants
are not assignable or transferable. Any assignment or transfer shall render
the grant agreement null and void, and all grant funds awarded shall be
remitted immediately to the Department. For purposes of this Part, grants will
not be considered transferred or assigned if a CON or a COE authorizing the
change of ownership of the hospital is issued by the Health Facilities and
Services Review Board (see 77 Ill. Adm. Code 1110.240 and 1130.520).
f) If
the grantee ceases operation and is no longer a licensed hospital, the grant
agreement is voided and all grant funds awarded shall immediately be remitted
to the Department.
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.160 OBLIGATION
Section 976.160 Obligation
a) A
grantee shall obligate the funds no later than 18 months after the Illinois
State Comptroller has made the initial payment to the grantee.
b) Obligation occurs when
one of the following is submitted to the Department:
1) A
copy of a signed construction contract that is equal to or exceeds 30% of the
total project cost (if a project involves construction or modernization that
will be performed without a contract, obligation occurs when the hospital's
Board of Directors authorized the project to commence);
2) A
copy of a signed purchase order that equals or exceeds 30% of the total project
cost for medical equipment or information technology; or
3) Documentation
of the combined total capital expenditure of 30% or more of the project cost
(documentation shall consist of a certification from the grantee attesting to
the amount of funds expended).
c) Failure
to submit an obligation notice within the prescribed time frame will result in
the Department pursuing the recovery of grant funds (see Section 976.140).
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.170 ALTERATION
Section 976.170 Alteration
a) The
scope of an approved project can be altered within the parameters established
in this Section. All alterations require notification to the Department.
Approval shall be obtained from the Department for certain alterations
(depending on the scope of the change). For alterations that require approval,
the grantee shall receive authorization prior to incurring the alteration.
b) Alterations that require
notification but do not require approval include:
1) The
transfer of funds between line items for amounts not exceeding 25% of the
original line item amount; or
2) An
increase in the total project cost not to exceed 5% of the original project
cost.
c) Alterations that require
approval include:
1) The
transfer of funds between line items for amounts exceeding 25% of the original
line item amount; or
2) An
increase in the total project cost in excess of 5% of the original project
cost.
d) Alteration Procedures
1) For
all alteration requests, the grantee shall notify the Department in writing.
This notification shall include:
A) A
description of the alteration;
B) A
narrative of the item or items that will change as a result of the alteration;
and
C) Any
costs or services affected.
2) The Department
will review all alteration requests. For requests that require approval, the
Department will notify the grantee of its determination within 30 calendar days
after receipt of the request.
3) Alterations
that affect the corresponding grant award or grant agreement will result in
those documents being amended accordingly.
e) A grantee may alter
funding three times during the grant agreement.
f) Grantees
whose projects are subject to a CON shall also document that the project has
received a permit alteration from the Health Facilities and Services Review
Board (see 77 Ill. Adm. Code 1130.750).
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.180 PROGRESS REPORTS
Section 976.180 Progress Reports
a) Each
grantee shall submit a progress report to the Department every 12 months from
the date that the grant agreement is executed until the project is complete.
The progress report is due within 10 calendar days after the anniversary date
of the grant agreement. The progress report shall include the following:
1) The
current status of the project, including the percentage of the project
finished, components finished and components yet to be finished;
2) The
cost incurred to date and an itemized listing of the total current estimated
project costs compared to the approved amounts;
3) The
anticipated date of completion; and
4) The
notarized signature of the grantee's Chief Executive Officer stating that this
is a true and complete report on the project's status.
b) Failure
to provide progress reports within the prescribed time frames will result in
the Department pursuing the recovery of grant funds (see Section 976.140).
| TITLE 77: PUBLIC HEALTH
CHAPTER I: DEPARTMENT OF PUBLIC HEALTH
SUBCHAPTER u: MISCELLANEOUS PROGRAMS AND SERVICES
PART 976
HOSPITAL CAPITAL INVESTMENTS
SECTION 976.190 PROJECT COMPLETION
Section 976.190 Project Completion
Each grantee shall notify the Department within 30 calendar
days following the project's completion.
a) The
completion notice will provide a notarized statement that certifies the
following:
1) All
project costs and sources of funds;
2) That
all funds attributed to the grant award have been expended;
3) That
the costs reported are the final costs required to complete the project and
there are no additional or associated costs; and,
4) That
no portion of the grant was used to pay for any on-going operational
costs, outstanding debt or an endowment or other invested fund. (Section
2310-640(a) of the Act)
b) The notarized statement
shall be signed by the grantee's Chief Executive Officer.
c) Grantees
whose projects are subject to CON requirements shall also document that the
Health Facilities and Services Review Board has deemed the project complete
(see 77 Ill. Adm. Code 1130.770). Documentation shall consist of a letter from
the Health Facilities and Services Review Board attesting that the project is
complete.
d) Grantees
whose projects are pending approval in accordance with the requirements of the
Hospital Licensing Act shall also provide a copy of the Permanent Occupancy or
Notice of System Acceptance letter (whichever is applicable) issued by the
Department.
e) Failure
to provide the completion notice within the prescribed time frame will result
in the Department pursuing the recovery of grant funds (see Section 976.140).
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