Sen. David Luechtefeld

Filed: 7/23/2004

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1191

2     AMENDMENT NO. ______. Amend House Bill 1191 by replacing
3 everything after the enacting clause with the following:
 
4
"ARTICLE 1. FINDINGS

 
5     Section 101. Findings. The General Assembly finds as
6 follows:
7     (1) The increasing cost of medical malpractice insurance
8 results in increased financial burdens on physicians and
9 hospitals.
10     (2) The increasing cost of medical malpractice insurance in
11 Illinois is believed to have contributed to the reduction of
12 the availability of medical care in portions of the State and
13 is believed to have discouraged some medical students from
14 choosing Illinois as the place they will receive their medical
15 education and practice medicine.
16     (3) The public would benefit from making the services of
17 hospitals and physicians more available.
18     (4) In order to preserve the public health, safety, and
19 welfare of the people of Illinois, the current medical
20 malpractice situation requires reforms that enhance the
21 State's oversight of physicians and ability to discipline
22 physicians, that increase the State's oversight of medical
23 liability insurance carriers, that reduce the number of
24 nonmeritorious healing art malpractice actions, that encourage

 

 

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1 physicians to provide voluntary services at free medical
2 clinics, and that encourage physicians and hospitals to
3 continue providing health care services in Illinois.
 
4
ARTICLE 2. RISK RETENTION ARRANGEMENTS

 
5     Section 205. The Open Meetings Act is amended by changing
6 Section 2 as follows:
 
7     (5 ILCS 120/2)  (from Ch. 102, par. 42)
8     Sec. 2. Open meetings.
9     (a) Openness required. All meetings of public bodies shall
10 be open to the public unless excepted in subsection (c) and
11 closed in accordance with Section 2a.
12     (b) Construction of exceptions. The exceptions contained
13 in subsection (c) are in derogation of the requirement that
14 public bodies meet in the open, and therefore, the exceptions
15 are to be strictly construed, extending only to subjects
16 clearly within their scope. The exceptions authorize but do not
17 require the holding of a closed meeting to discuss a subject
18 included within an enumerated exception.
19     (c) Exceptions. A public body may hold closed meetings to
20 consider the following subjects:
21         (1) The appointment, employment, compensation,
22     discipline, performance, or dismissal of specific
23     employees of the public body or legal counsel for the
24     public body, including hearing testimony on a complaint
25     lodged against an employee of the public body or against
26     legal counsel for the public body to determine its
27     validity.
28         (2) Collective negotiating matters between the public
29     body and its employees or their representatives, or
30     deliberations concerning salary schedules for one or more
31     classes of employees.

 

 

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1         (3) The selection of a person to fill a public office,
2     as defined in this Act, including a vacancy in a public
3     office, when the public body is given power to appoint
4     under law or ordinance, or the discipline, performance or
5     removal of the occupant of a public office, when the public
6     body is given power to remove the occupant under law or
7     ordinance.
8         (4) Evidence or testimony presented in open hearing, or
9     in closed hearing where specifically authorized by law, to
10     a quasi-adjudicative body, as defined in this Act, provided
11     that the body prepares and makes available for public
12     inspection a written decision setting forth its
13     determinative reasoning.
14         (5) The purchase or lease of real property for the use
15     of the public body, including meetings held for the purpose
16     of discussing whether a particular parcel should be
17     acquired.
18         (6) The setting of a price for sale or lease of
19     property owned by the public body.
20         (7) The sale or purchase of securities, investments, or
21     investment contracts.
22         (8) Security procedures and the use of personnel and
23     equipment to respond to an actual, a threatened, or a
24     reasonably potential danger to the safety of employees,
25     students, staff, the public, or public property.
26         (9) Student disciplinary cases.
27         (10) The placement of individual students in special
28     education programs and other matters relating to
29     individual students.
30         (11) Litigation, when an action against, affecting or
31     on behalf of the particular public body has been filed and
32     is pending before a court or administrative tribunal, or
33     when the public body finds that an action is probable or
34     imminent, in which case the basis for the finding shall be

 

 

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1     recorded and entered into the minutes of the closed
2     meeting.
3         (12) The establishment of reserves or settlement of
4     claims as provided in the Local Governmental and
5     Governmental Employees Tort Immunity Act, if otherwise the
6     disposition of a claim or potential claim might be
7     prejudiced, or the review or discussion of claims, loss or
8     risk management information, records, data, advice or
9     communications from or with respect to any insurer of the
10     public body or any intergovernmental risk management
11     association or self insurance pool of which the public body
12     is a member.
13         (13) Conciliation of complaints of discrimination in
14     the sale or rental of housing, when closed meetings are
15     authorized by the law or ordinance prescribing fair housing
16     practices and creating a commission or administrative
17     agency for their enforcement.
18         (14) Informant sources, the hiring or assignment of
19     undercover personnel or equipment, or ongoing, prior or
20     future criminal investigations, when discussed by a public
21     body with criminal investigatory responsibilities.
22         (15) Professional ethics or performance when
23     considered by an advisory body appointed to advise a
24     licensing or regulatory agency on matters germane to the
25     advisory body's field of competence.
26         (16) Self evaluation, practices and procedures or
27     professional ethics, when meeting with a representative of
28     a statewide association of which the public body is a
29     member.
30         (17) The recruitment, credentialing, discipline or
31     formal peer review of physicians or other health care
32     professionals for a hospital, or other institution
33     providing medical care, that is operated by the public
34     body.

 

 

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1         (18) Deliberations for decisions of the Prisoner
2     Review Board.
3         (19) Review or discussion of applications received
4     under the Experimental Organ Transplantation Procedures
5     Act.
6         (20) The classification and discussion of matters
7     classified as confidential or continued confidential by
8     the State Employees Suggestion Award Board.
9         (21) Discussion of minutes of meetings lawfully closed
10     under this Act, whether for purposes of approval by the
11     body of the minutes or semi-annual review of the minutes as
12     mandated by Section 2.06.
13         (22) Deliberations for decisions of the State
14     Emergency Medical Services Disciplinary Review Board.
15         (23) The operation by a municipality of a municipal
16     utility or the operation of a municipal power agency or
17     municipal natural gas agency when the discussion involves
18     (i) contracts relating to the purchase, sale, or delivery
19     of electricity or natural gas or (ii) the results or
20     conclusions of load forecast studies.
21         (24) Meetings of a residential health care facility
22     resident sexual assault and death review team or the
23     Residential Health Care Facility Resident Sexual Assault
24     and Death Review Teams Executive Council under the
25     Residential Health Care Facility Resident Sexual Assault
26     and Death Review Team Act.
27         (25) The establishment of reserves administration,
28     adjudication, or settlement of claims as provided in
29     Article XLV of the Illinois Insurance Code if otherwise the
30     disposition of a claim or potential claim might be
31     prejudiced, or the review or discussion of claims, loss or
32     risk management information, records, data, advice or
33     communications from or with respect to any self-insurance
34     trust administration or adjudication of any claim, or

 

 

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1     insurer created by the public body.
2     (d) Definitions. For purposes of this Section:
3     "Employee" means a person employed by a public body whose
4 relationship with the public body constitutes an
5 employer-employee relationship under the usual common law
6 rules, and who is not an independent contractor.
7     "Public office" means a position created by or under the
8 Constitution or laws of this State, the occupant of which is
9 charged with the exercise of some portion of the sovereign
10 power of this State. The term "public office" shall include
11 members of the public body, but it shall not include
12 organizational positions filled by members thereof, whether
13 established by law or by a public body itself, that exist to
14 assist the body in the conduct of its business.
15     "Quasi-adjudicative body" means an administrative body
16 charged by law or ordinance with the responsibility to conduct
17 hearings, receive evidence or testimony and make
18 determinations based thereon, but does not include local
19 electoral boards when such bodies are considering petition
20 challenges.
21     (e) Final action. No final action may be taken at a closed
22 meeting. Final action shall be preceded by a public recital of
23 the nature of the matter being considered and other information
24 that will inform the public of the business being conducted.
25 (Source: P.A. 93-57, eff. 7-1-03; 93-79, eff. 7-2-03; 93-422,
26 eff. 8-5-03; 93-577, eff. 8-21-03; revised 9-8-03)
 
27     Section 210. The Counties Code is amended by changing
28 Section 5-1005 and by adding Division 6-34 as follows:
 
29     (55 ILCS 5/5-1005)  (from Ch. 34, par. 5-1005)
30     Sec. 5-1005. Powers. Each county shall have power:
31     1. To purchase and hold the real and personal estate
32 necessary for the uses of the county, and to purchase and hold,

 

 

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1 for the benefit of the county, real estate sold by virtue of
2 judicial proceedings in which the county is plaintiff.
3     2. To sell and convey or lease any real or personal estate
4 owned by the county.
5     3. To make all contracts and do all other acts in relation
6 to the property and concerns of the county necessary to the
7 exercise of its corporate powers.
8     4. To take all necessary measures and institute proceedings
9 to enforce all laws for the prevention of cruelty to animals.
10     5. To purchase and hold or lease real estate upon which may
11 be erected and maintained buildings to be utilized for purposes
12 of agricultural experiments and to purchase, hold and use
13 personal property for the care and maintenance of such real
14 estate in connection with such experimental purposes.
15     6. To cause to be erected, or otherwise provided, suitable
16 buildings for, and maintain a county hospital and necessary
17 branch hospitals and/or a county sheltered care home or county
18 nursing home for the care of such sick, chronically ill or
19 infirm persons as may by law be proper charges upon the county,
20 or upon other governmental units, and to provide for the
21 management of the same. The county board may establish rates to
22 be paid by persons seeking care and treatment in such hospital
23 or home in accordance with their financial ability to meet such
24 charges, either personally or through a hospital plan or
25 hospital insurance, and the rates to be paid by governmental
26 units, including the State, for the care of sick, chronically
27 ill or infirm persons admitted therein upon the request of such
28 governmental units. Any hospital maintained by a county under
29 this Section is authorized to provide any service and enter
30 into any contract or other arrangement not prohibited for a
31 hospital that is licensed under the Hospital Licensing Act,
32 incorporated under the General Not-For-Profit Corporation Act,
33 and exempt from taxation under paragraph (3) of subsection (c)
34 of Section 501 of the Internal Revenue Code.

 

 

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1     7. To contribute such sums of money toward erecting,
2 building, maintaining, and supporting any non-sectarian public
3 hospital located within its limits as the county board of the
4 county shall deem proper.
5     8. To purchase and hold real estate for the preservation of
6 forests, prairies and other natural areas and to maintain and
7 regulate the use thereof.
8     9. To purchase and hold real estate for the purpose of
9 preserving historical spots in the county, to restore, maintain
10 and regulate the use thereof and to donate any historical spot
11 to the State.
12     10. To appropriate funds from the county treasury to be
13 used in any manner to be determined by the board for the
14 suppression, eradication and control of tuberculosis among
15 domestic cattle in such county.
16     11. To take all necessary measures to prevent forest fires
17 and encourage the maintenance and planting of trees and the
18 preservation of forests.
19     12. To authorize the closing on Saturday mornings of all
20 offices of all county officers at the county seat of each
21 county, and to otherwise regulate and fix the days and the
22 hours of opening and closing of such offices, except when the
23 days and the hours of opening and closing of the office of any
24 county officer are otherwise fixed by law; but the power herein
25 conferred shall not apply to the office of State's Attorney and
26 the offices of judges and clerks of courts and, in counties of
27 500,000 or more population, the offices of county clerk.
28     13. To provide for the conservation, preservation and
29 propagation of insectivorous birds through the expenditure of
30 funds provided for such purpose.
31     14. To appropriate funds from the county treasury and
32 expend the same for care and treatment of tuberculosis
33 residents.
34     15. In counties having less than 1,000,000 inhabitants, to

 

 

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1 take all necessary or proper steps for the extermination of
2 mosquitoes, flies or other insects within the county.
3     16. To install an adequate system of accounts and financial
4 records in the offices and divisions of the county, suitable to
5 the needs of the office and in accordance with generally
6 accepted principles of accounting for governmental bodies,
7 which system may include such reports as the county board may
8 determine.
9     17. To purchase and hold real estate for the construction
10 and maintenance of motor vehicle parking facilities for persons
11 using county buildings, but the purchase and use of such real
12 estate shall not be for revenue producing purposes.
13     18. To acquire and hold title to real property located
14 within the county, or partly within and partly outside the
15 county by dedication, purchase, gift, legacy or lease, for park
16 and recreational purposes and to charge reasonable fees for the
17 use of or admission to any such park or recreational area and
18 to provide police protection for such park or recreational
19 area. Personnel employed to provide such police protection
20 shall be conservators of the peace within such park or
21 recreational area and shall have power to make arrests on view
22 of the offense or upon warrants for violation of any of the
23 ordinances governing such park or recreational area or for any
24 breach of the peace in the same manner as the police in
25 municipalities organized and existing under the general laws of
26 the State. All such real property outside the county shall be
27 contiguous to the county and within the boundaries of the State
28 of Illinois.
29     19. To appropriate funds from the county treasury to be
30 used to provide supportive social services designed to prevent
31 the unnecessary institutionalization of elderly residents, or,
32 for operation of, and equipment for, senior citizen centers
33 providing social services to elderly residents.
34     20. To appropriate funds from the county treasury and loan

 

 

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1 such funds to a county water commission created under the
2 "Water Commission Act", approved June 30, 1984, as now or
3 hereafter amended, in such amounts and upon such terms as the
4 county may determine or the county and the commission may
5 agree. The county shall not under any circumstances be
6 obligated to make such loans. The county shall not be required
7 to charge interest on any such loans.
8     21. To establish an independent entity to administer a
9 medical care risk retention trust program, to contribute such
10 sums of money to the risk retention trust program as the county
11 board of the county shall deem proper to operate the medical
12 care risk retention trust program, to establish uniform
13 eligibility requirements for participation in the risk
14 retention trust program, to appoint an administrator of the
15 risk retention trust program, to charge premiums, to establish
16 a billing procedure to collect premiums, and to ensure timely
17 administration and adjudication of claims under the program. A
18 single medical care risk retention trust program may be
19 established jointly by more than one county, in accordance with
20 an agreement between the participating counties, if at least
21 one of the participating counties has a population of 200,000
22 or more according to the most recent federal decennial census.
23     All contracts for the purchase of coal under this Section
24 shall be subject to the provisions of "An Act concerning the
25 use of Illinois mined coal in certain plants and institutions",
26 filed July 13, 1937, as amended.
27 (Source: P.A. 86-962; 86-1028.)
 
28     (55 ILCS 5/Div. 6-34 heading new)
29
Division 6-34.
Funding for health care financing programs

 
30     (55 ILCS 5/6-34001 new)
31     Sec. 6-34001. Authorization. The county board of any county
32 with a population of 200,000 or more according to the most

 

 

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1 recent federal decennial census (and a county with a population
2 of less than 200,000 according to the most recent federal
3 decennial census if that county is participating in a single
4 trust program with one or more other counties in accordance
5 with the requirements of paragraph (21) of Section 5-1005 of
6 this Code) may, upon finding such action necessary for
7 protection of the public health, safety, and welfare, incur an
8 indebtedness by the establishment of lines or letters of credit
9 or issue general obligation or revenue bonds for the purpose of
10 ensuring the availability of and improving hospital, medical,
11 and health services as authorized under paragraph (21) of
12 Section 5-1005 of this Code.
 
13     (55 ILCS 5/6-34002 new)
14     Sec. 6-34002. Bonds. The bonds authorized in Section
15 6-34001 shall be issued in such denominations, be for such term
16 or terms, and bear interest at such rate as may be specified in
17 the resolution of the county board authorizing the issuance of
18 those bonds.
 
19     Section 215. The Illinois Insurance Code is amended by
20 adding Article XLV as follows:
 
21     (215 ILCS 5/Art. XLV heading new)
22
Article XLV.
COUNTY RISK RETENTION ARRANGEMENTS
23
FOR THE PROVISION OF MEDICAL MALPRACTICE INSURANCE

 
24     (215 ILCS 5/1501 new)
25     Sec. 1501. Scope of Article. This Article applies only to
26 trusts sponsored by counties and organized under this Article
27 to provide medical malpractice insurance authorized under
28 paragraph (21) of Section 5-1005 of the Counties Code for
29 physicians and health care professionals providing medical
30 care and health care within the county's limits. In the case of

 

 

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1 a single trust sponsored and organized by more than one county
2 in accordance with the requirements of paragraph (21) of
3 Section 5-1005 of the Counties Code, the powers and duties of a
4 county under this Article shall be exercised jointly by the
5 counties participating in the trust program in accordance with
6 the agreement between the counties.
 
7     (215 ILCS 5/1502 new)
8     Sec. 1502. Definitions. As used in this Article:
9     "Risk retention trust" or "trust" means a risk retention
10 trust created under this Article.
11     "Trust sponsor" means a county that has created a risk
12 retention trust.
13     "Pool retention fund" means a separate fund maintained for
14 payment of first dollar claims, up to a specified amount per
15 claim ("specific retention") and up to an aggregate amount for
16 a 12-month period ("aggregate retention").
17     "Contingency reserve fund" means a separate fund
18 maintained for payment of claims in excess of the pool
19 retention fund amount.
20     "Coverage grant" means the document describing specific
21 coverages and terms of coverage that are provided by a risk
22 retention trust created under this Article.
23     "Licensed service company" means an entity licensed by the
24 Department to perform claims adjusting, loss control, and data
25 processing.
 
26     (215 ILCS 5/1503 new)
27     Sec. 1503. Name. The corporate name of any risk retention
28 trust shall not be the same as or deceptively similar to the
29 name of any domestic insurance company or of any foreign or
30 alien insurance company authorized to transact business in this
31 State.
 

 

 

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1     (215 ILCS 5/1504 new)
2     Sec. 1504. Principal office place of business. The
3 principal office of any risk retention trust shall be located
4 in this State.
 
5     (215 ILCS 5/1505 new)
6     Sec. 1505. Creation.
7     (1) Any county with a population of 200,000 or more
8 according to the most recent federal decennial census may
9 create a risk retention trust for the pooling of risks to
10 provide professional liability coverage authorized under
11 paragraph (21) of Section 5-1005 of the Counties Code for its
12 physicians and health care professionals providing medical
13 care and related health care within the county's limits. A
14 single risk retention trust may also be created jointly by more
15 than one county in accordance with the requirements of
16 paragraph (21) of Section 5-1005 of the Counties Code. A trust
17 shall be administered by at least 3 trustees who may be
18 individuals or corporate trustees and are appointed by the
19 trust sponsor and who represent physicians who have agreed in
20 writing to participate in the trust.
21     (2) The trustees shall appoint a qualified licensed
22 administrator who shall administer the affairs of the risk
23 retention trust.
24     (3) The trustees shall retain a licensed service company to
25 perform claims adjusting, loss control, and data processing and
26 any other delegated administrative duties.
27     (4) The trust sponsor, the trustees, and the trust
28 administrator shall be fiduciaries of the trust.
29     (5) A trust shall be consummated by a written trust
30 agreement and shall be subject to the laws of this State
31 governing the creation and operation of trusts, to the extent
32 not inconsistent with this Article.
 

 

 

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1     (215 ILCS 5/1506 new)
2     Sec. 1506. Participation.
3     (1) A physician or health care professional providing
4 medical care and related health care within the county's limits
5 may participate in a risk retention trust if the physician or
6 health care professional:
7         (a) meets the underwriting standards for acceptance
8     into the trust;
9         (b) files a written application for coverage, agreeing
10     to meet all of the membership conditions of the trust;
11         (c) provides medical care and related health care in
12     the county sponsoring the trust;
13         (d) agrees to meet the ongoing loss control provisions
14     and risk pooling arrangements set forth by the trust;
15         (e) pays premium contributions on a timely basis as
16     required; and
17         (f) pays predetermined annual required contributions
18     into the contingency reserve fund.
19     (2) A physician or health care professional accepted for
20 trust membership and participating in the trust is liable for
21 payment to the trust of the amount of his or her annual premium
22 contribution and his or her annual predetermined contingency
23 reserve fund contribution.
 
24     (215 ILCS 5/1507 new)
25     Sec. 1507. Coverage grants; payment of claims.
26     (1) A risk retention trust may not issue coverage grants
27 until it has established a contingency reserve fund in an
28 amount deemed appropriate by the trust and filed with the
29 Department of Insurance. A risk retention trust must have and
30 at all times maintain a pool retention fund or a line or letter
31 of credit at least equal to its unpaid liabilities as
32 determined by an independent actuary.
33     (2) Every coverage grant issued or delivered in this State

 

 

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1 by a risk retention trust shall provide for the extent of the
2 liability of trust members to the extent that funds are needed
3 to pay a member's share of the depleted contingency reserve
4 fund needed to maintain the reserves required by this Section.
5     (3) All claims shall be paid first from the pool retention
6 fund. If that fund becomes depleted, any additional claims
7 shall be paid from the contingency reserve fund.
 
8     (215 ILCS 5/1508 new)
9     Sec. 1508. Applicable Illinois Insurance Code provisions.
10 Other than this Article, only Sections 155.19, 155.20, and
11 155.25 and subsections (a) through (c) of Section 155.18 of
12 this Code shall apply to county risk retention trusts. The
13 Director shall advise the county board of any determinations
14 made pursuant to subsection (b) of Section 155.18 of this Code.
 
15     (215 ILCS 5/1509 new)
16     Sec. 1509. Authorized investments. In addition to other
17 investments authorized by law, a risk retention trust with
18 assets of at least $5,000,000 may invest in any combination of
19 the following:
20         (1) the common stocks listed on a recognized exchange
21     or market;
22         (2) stock and convertible debt investments, or
23     investment grade corporate bonds, in or issued by any
24     corporation, the book value of which may not exceed 5% of
25     the total intergovernmental risk management entity's
26     investment account at book value in which those securities
27     are held, determined as of the date of the investment,
28     provided that investments in the stock of any one
29     corporation may not exceed 5% of the total outstanding
30     stock of the corporation and that the investments in the
31     convertible debt of any one corporation may not exceed 5%
32     of the total amount of such debt that may be outstanding;

 

 

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1         (3) the straight preferred stocks or convertible
2     preferred stocks and convertible debt securities issued or
3     guaranteed by a corporation whose common stock is listed on
4     a recognized exchange or market;
5         (4) mutual funds or commingled funds that meet the
6     following requirements:
7             (A) the mutual fund or commingled fund is managed
8         by an investment company as defined in and registered
9         under the federal Investment Company Act of 1940 and
10         registered under the Illinois Securities Law of 1953 or
11         an investment adviser as defined under the federal
12         Investment Advisers Act of 1940;
13             (B) the mutual fund has been in operation for at
14         least 5 years; and
15             (C) the mutual fund has total net assets of
16         $150,000,000 or more;
17         (5) commercial grade real estate located in the State
18     of Illinois.
19     Any investment adviser retained by a trust must be a
20 fiduciary who has the power to manage, acquire, or dispose of
21 any asset of the trust and has acknowledged in writing that he
22 or she is a fiduciary with respect to the trust and that he or
23 she will adhere to all of the guidelines of the trust and is
24 one or more of the following:
25             (i) registered as an investment adviser under the
26         federal Investment Advisers Act of 1940;
27             (ii) registered as an investment adviser under the
28         Illinois Securities Law of 1953;
29             (iii) a bank as defined in the federal Investment
30         Advisers Act of 1940;
31             (iv) an insurance company authorized to transact
32         business in this State.
33     Nothing in this Section shall be construed to authorize a
34 risk retention trust to accept the deposit of public funds

 

 

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1 except for trust risk retention purposes.
 
2
ARTICLE 3. AMENDATORY PROVISIONS

 
3     Section 310. The Illinois Insurance Code is amended by
4 changing Sections 155.18, 155.19, 402, and 1204 and by adding
5 Section 155.18a as follows:
 
6     (215 ILCS 5/155.18)  (from Ch. 73, par. 767.18)
7     Sec. 155.18. (a) This Section shall apply to insurance on
8 risks based upon negligence by a physician, hospital or other
9 health care provider, referred to herein as medical liability
10 insurance. This Section shall not apply to contracts of
11 reinsurance, nor to any farm, county, district or township
12 mutual insurance company transacting business under an Act
13 entitled "An Act relating to local mutual district, county and
14 township insurance companies", approved March 13, 1936, as now
15 or hereafter amended, nor to any such company operating under a
16 special charter.
17     (b) The following standards shall apply to the making and
18 use of rates pertaining to all classes of medical liability
19 insurance:
20         (1) Rates shall not be excessive or inadequate, as
21     herein defined, nor shall they be unfairly discriminatory.
22     No rate shall be held to be excessive unless such rate is
23     unreasonably high for the insurance provided, and a
24     reasonable degree of competition does not exist in the area
25     with respect to the classification to which such rate is
26     applicable.
27         No rate shall be held inadequate unless it is
28     unreasonably low for the insurance provided and continued
29     use of it would endanger solvency of the company.
30         (2) Consideration shall be given, to the extent
31     applicable, to past and prospective loss experience within

 

 

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1     and outside this State, to a reasonable margin for
2     underwriting profit and contingencies, to past and
3     prospective expenses both countrywide and those especially
4     applicable to this State, and to all other factors,
5     including judgment factors, deemed relevant within and
6     outside this State.
7         Consideration may also be given in the making and use
8     of rates to dividends, savings or unabsorbed premium
9     deposits allowed or returned by companies to their
10     policyholders, members or subscribers.
11         (3) The systems of expense provisions included in the
12     rates for use by any company or group of companies may
13     differ from those of other companies or groups of companies
14     to reflect the operating methods of any such company or
15     group with respect to any kind of insurance, or with
16     respect to any subdivision or combination thereof.
17         (4) Risks may be grouped by classifications for the
18     establishment of rates and minimum premiums.
19     Classification rates may be modified to produce rates for
20     individual risks in accordance with rating plans which
21     establish standards for measuring variations in hazards or
22     expense provisions, or both. Such standards may measure any
23     difference among risks that have a probable effect upon
24     losses or expenses. Such classifications or modifications
25     of classifications of risks may be established based upon
26     size, expense, management, individual experience, location
27     or dispersion of hazard, or any other reasonable
28     considerations and shall apply to all risks under the same
29     or substantially the same circumstances or conditions. The
30     rate for an established classification should be related
31     generally to the anticipated loss and expense factors of
32     the class.
33     (c) Every company writing medical liability insurance
34 shall file with the Director of Insurance the rates and rating

 

 

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1 schedules it uses for medical liability insurance.
2         (1) This filing shall occur upon a company's
3     commencement of medical liability insurance business in
4     this State at least annually and thereafter as often as the
5     rates are changed or amended.
6         (2) For the purposes of this Section, any change in
7     premium to the company's insureds as a result of a change
8     in the company's base rates or a change in its increased
9     limits factors shall constitute a change in rates and shall
10     require a filing with the Director.
11         (3) It shall be certified in such filing by an officer
12     of the company and a qualified actuary that the company's
13     rates are based on sound actuarial principles and are not
14     inconsistent with the company's experience.
15     (d) If, after an administrative a hearing pursuant to
16 subsection (c) of Section 401 of this Code, the Director finds:
17         (1) that any rate, rating plan or rating system
18     violates the provisions of this Section applicable to it,
19     he shall may issue an order to the company which has been
20     the subject of the hearing specifying in what respects such
21     violation exists and may prohibit stating when, within a
22     reasonable period of time, the further use of such rate or
23     rating system by such company in contracts of insurance
24     made thereafter shall be prohibited;
25         (2) that the violation of any of the provisions of this
26     Section applicable to it by any company which has been the
27     subject of the hearing was wilful or that any company has
28     repeatedly violated any provision of this Section, he may
29     take either or both of the following actions:
30             (A) Suspend suspend or revoke, in whole or in part,
31         the certificate of authority of such company with
32         respect to the class of insurance which has been the
33         subject of the hearing.
34             (B) Impose a penalty of up to $1,000 against the

 

 

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1         company for each violation. Each day during which a
2         violation occurs constitutes a separate violation.
3     (e) Every company writing medical liability insurance in
4 this State shall offer to each of its medical liability
5 insureds the option to make premium payments in at least
6 quarterly installments as prescribed by and filed with the
7 Director. This offer shall be included in the initial offer or
8 in the first policy renewal occurring after the effective date
9 of this amendatory Act of the 93rd General Assembly, but no
10 earlier than January 1, 2005.
11     (f) Every company writing medical liability insurance is
12 encouraged, but not required, to offer the opportunity for
13 participation in a plan offering deductibles to its medical
14 liability insureds. Any plan to offer deductibles shall be
15 filed with the Department of Insurance.
16     (g) Medical liability insurers are encouraged, but not
17 required, to offer the opportunity for participation in a plan
18 providing premium discounts for participation in risk
19 management activities to its medical liability insureds. Any
20 such plan shall be filed with the Department.
21 (Source: P.A. 79-1434.)
 
22     (215 ILCS 5/155.18a new)
23     Sec. 155.18a. Professional Liability Insurance Resource
24 Center. The Director of Insurance shall establish a
25 Professional Liability Insurance Resource Center on the World
26 Wide Web containing the names and telephone numbers of all
27 licensed companies providing medical liability insurance and
28 producers who sell medical liability insurance. Each company
29 and producer shall submit the information to the Department on
30 or before September 30 of each year in order to be listed on
31 the website. The Department is under no obligation to list a
32 company or producer on the website. Hyperlinks to company
33 websites shall be included, if available. The publication of

 

 

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1 the information on the Department's website shall commence on
2 January 1, 2005. The Department shall update the information on
3 the Professional Liability Insurance Resource Center at least
4 annually.
 
5     (215 ILCS 5/155.19)  (from Ch. 73, par. 767.19)
6     Sec. 155.19. All claims filed after December 31, 1976 with
7 any insurer and all suits filed after December 31, 1976 in any
8 court in this State, alleging liability on the part of any
9 physician, hospital or other health care provider for medically
10 related injuries, shall be reported to the Director of
11 Insurance in such form and under such terms and conditions as
12 may be prescribed by the Director. Notwithstanding any other
13 provision of law to the contrary, any insurer, stop loss
14 insurer, captive insurer, risk retention group, county risk
15 retention trust, religious or charitable risk pooling trust,
16 surplus line insurer, or other entity authorized or permitted
17 by law to provide medical liability insurance in this State
18 shall report to the Director, in such form and under such terms
19 and conditions as may be prescribed by the Director, all claims
20 filed after December 31, 2004 and all suits filed after
21 December 31, 2004 in any court in this State alleging liability
22 on the part of any physician, hospital, or health care provider
23 for medically-related injuries. Each clerk of the circuit court
24 shall provide to the Director such information as the Director
25 may deem necessary to verify the accuracy and completeness of
26 reports made to the Director under this Section. The Director
27 shall maintain complete and accurate records of all such claims
28 and suits including their nature, amount, disposition and other
29 information as he may deem useful or desirable in observing and
30 reporting on health care provider liability trends in this
31 State. The Director shall release to appropriate disciplinary
32 and licensing agencies any such data or information which may
33 assist such agencies in improving the quality of health care or

 

 

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1 which may be useful to such agencies for the purpose of
2 professional discipline.
3     With due regard for appropriate maintenance of the
4 confidentiality thereof, the Director shall may release, on an
5 annual basis, from time to time to the Governor, the General
6 Assembly and the general public statistical reports based on
7 such data and information.
8     If the Director finds that any entity required to report
9 information in its possession under this Section has violated
10 any provision of this Section by filing late, incomplete, or
11 inaccurate reports, the Director may fine the entity up to
12 $1,000 for each offense. Each day during which a violation
13 occurs constitutes a separate offense.
14     The Director may promulgate such rules and regulations as
15 may be necessary to carry out the provisions of this Section.
16 (Source: P.A. 79-1434.)
 
17     (215 ILCS 5/402)  (from Ch. 73, par. 1014)
18     Sec. 402. Examinations, investigations and hearings. (1)
19 All examinations, investigations and hearings provided for by
20 this Code may be conducted either by the Director personally,
21 or by one or more of the actuaries, technical advisors,
22 deputies, supervisors or examiners employed or retained by the
23 Department and designated by the Director for such purpose.
24 When necessary to supplement its examination procedures, the
25 Department may retain independent actuaries deemed competent
26 by the Director, independent certified public accountants, or
27 qualified examiners of insurance companies deemed competent by
28 the Director, or any combination of the foregoing, the cost of
29 which shall be borne by the company or person being examined.
30 The Director may compensate independent actuaries, certified
31 public accountants and qualified examiners retained for
32 supplementing examination procedures in amounts not to exceed
33 the reasonable and customary charges for such services. The

 

 

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1 Director may also accept as a part of the Department's
2 examination of any company or person (a) a report by an
3 independent actuary deemed competent by the Director or (b) a
4 report of an audit made by an independent certified public
5 accountant. Neither those persons so designated nor any members
6 of their immediate families shall be officers of, connected
7 with, or financially interested in any company other than as
8 policyholders, nor shall they be financially interested in any
9 other corporation or person affected by the examination,
10 investigation or hearing.
11     (2) All hearings provided for in this Code shall, unless
12 otherwise specially provided, be held at such time and place as
13 shall be designated in a notice which shall be given by the
14 Director in writing to the person or company whose interests
15 are affected, at least 10 days before the date designated
16 therein. The notice shall state the subject of inquiry and the
17 specific charges, if any. The hearings shall be held in the
18 City of Springfield, the City of Chicago, or in the county
19 where the principal business address of the person or company
20 affected is located.
21     (3) For a rate increase filing in medical liability
22 insurance under Section 155.18 of this Code, the Director may
23 hold a hearing with the insurance company and policyholders
24 present for the purpose of receiving testimony from the
25 insurance company and policyholders regarding the rate
26 increase. The hearing must occur under written and express
27 terms and conditions that are sufficient to protect from
28 disclosure information that the subject medical liability
29 insurance company deems proprietary, confidential, or a trade
30 secret. The insurance company must give notice of the hearing
31 time, date, and location to medical liability insurance
32 policyholders whose rates have increased. Notice to
33 policyholders may be given through regular publications issued
34 to policyholders or by electronic means. Other than the cost of

 

 

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1 this notice, the Department shall be responsible for the costs
2 of this hearing.
3 (Source: P.A. 87-757.)
 
4     (215 ILCS 5/1204)  (from Ch. 73, par. 1065.904)
5     Sec. 1204. (A) The Director shall promulgate rules and
6 regulations which shall require each insurer licensed to write
7 property or casualty insurance in the State and each syndicate
8 doing business on the Illinois Insurance Exchange to record and
9 report its loss and expense experience and other data as may be
10 necessary to assess the relationship of insurance premiums and
11 related income as compared to insurance costs and expenses. The
12 Director may designate one or more rate service organizations
13 or advisory organizations to gather and compile such experience
14 and data. The Director shall require each insurer licensed to
15 write property or casualty insurance in this State and each
16 syndicate doing business on the Illinois Insurance Exchange to
17 submit a report, on a form furnished by the Director, showing
18 its direct writings in this State and companywide.
19     (B) Such report required by subsection (A) of this Section
20 may include, but not be limited to, the following specific
21 types of insurance written by such insurer:
22         (1) Political subdivision liability insurance reported
23     separately in the following categories:
24             (a) municipalities;
25             (b) school districts;
26             (c) other political subdivisions;
27         (2) Public official liability insurance;
28         (3) Dram shop liability insurance;
29         (4) Day care center liability insurance;
30         (5) Labor, fraternal or religious organizations
31     liability insurance;
32         (6) Errors and omissions liability insurance;
33         (7) Officers and directors liability insurance

 

 

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1     reported separately as follows:
2             (a) non-profit entities;
3             (b) for-profit entities;
4         (8) Products liability insurance;
5         (9) Medical malpractice insurance;
6         (10) Attorney malpractice insurance;
7         (11) Architects and engineers malpractice insurance;
8     and
9         (12) Motor vehicle insurance reported separately for
10     commercial and private passenger vehicles as follows:
11             (a) motor vehicle physical damage insurance;
12             (b) motor vehicle liability insurance.
13     (C) Such report may include, but need not be limited to the
14 following data, both specific to this State and companywide, in
15 the aggregate or by type of insurance for the previous year on
16 a calendar year basis:
17         (1) Direct premiums written;
18         (2) Direct premiums earned;
19         (3) Number of policies;
20         (4) Net investment income, using appropriate estimates
21     where necessary;
22         (5) Losses paid;
23         (6) Losses incurred;
24         (7) Loss reserves:
25             (a) Losses unpaid on reported claims;
26             (b) Losses unpaid on incurred but not reported
27         claims;
28         (8) Number of claims:
29             (a) Paid claims;
30             (b) Arising claims;
31         (9) Loss adjustment expenses:
32             (a) Allocated loss adjustment expenses;
33             (b) Unallocated loss adjustment expenses;
34         (10) Net underwriting gain or loss;

 

 

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1         (11) Net operation gain or loss, including net
2     investment income;
3         (12) Any other information requested by the Director.
4     (C-5) Additional information required from medical
5 malpractice insurers.
6         (1) In addition to the other requirements of this
7     Section, all medical malpractice insurers shall include
8     the following information in the report required by
9     subsection (A) of this Section in such form and under such
10     terms and conditions as may be prescribed by the Director:
11             (a) paid and incurred losses by county for each of
12         the past 10 policy years; and
13             (b) earned exposures by ISO code, policy type, and
14         policy year by county for each of the past 10 years.
15         (2) All information collected by the Director under
16     paragraph (1) of this subsection (C-5) shall be made
17     available, on an aggregate basis, to the General Assembly
18     and the general public. This provision shall supersede any
19     other provision of law that may otherwise protect such
20     information from public disclosure as confidential. The
21     identity of the plaintiff, the defendant, the attorneys,
22     and the company shall not be disclosed.
23     (D) In addition to the information which may be requested
24 under subsection (C), the Director may also request on a
25 companywide, aggregate basis, Federal Income Tax recoverable,
26 net realized capital gain or loss, net unrealized capital gain
27 or loss, and all other expenses not requested in subsection (C)
28 above.
29     (E) Violations - Suspensions - Revocations.
30         (1) Any company or person subject to this Article, who
31     willfully or repeatedly fails to observe or who otherwise
32     violates any of the provisions of this Article or any rule
33     or regulation promulgated by the Director under authority
34     of this Article or any final order of the Director entered

 

 

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1     under the authority of this Article shall by civil penalty
2     forfeit to the State of Illinois a sum not to exceed
3     $2,000. Each day during which a violation occurs
4     constitutes a separate offense.
5         (2) No forfeiture liability under paragraph (1) of this
6     subsection may attach unless a written notice of apparent
7     liability has been issued by the Director and received by
8     the respondent, or the Director sends written notice of
9     apparent liability by registered or certified mail, return
10     receipt requested, to the last known address of the
11     respondent. Any respondent so notified must be granted an
12     opportunity to request a hearing within 10 days from
13     receipt of notice, or to show in writing, why he should not
14     be held liable. A notice issued under this Section must set
15     forth the date, facts and nature of the act or omission
16     with which the respondent is charged and must specifically
17     identify the particular provision of this Article, rule,
18     regulation or order of which a violation is charged.
19         (3) No forfeiture liability under paragraph (1) of this
20     subsection may attach for any violation occurring more than
21     2 years prior to the date of issuance of the notice of
22     apparent liability and in no event may the total civil
23     penalty forfeiture imposed for the acts or omissions set
24     forth in any one notice of apparent liability exceed
25     $100,000.
26         (4) All administrative hearings conducted pursuant to
27     this Article are subject to 50 Ill. Adm. Code 2402 and all
28     administrative hearings are subject to the Administrative
29     Review Law.
30         (5) The civil penalty forfeitures provided for in this
31     Section are payable to the General Revenue Fund of the
32     State of Illinois, and may be recovered in a civil suit in
33     the name of the State of Illinois brought in the Circuit
34     Court in Sangamon County or in the Circuit Court of the

 

 

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1     county where the respondent is domiciled or has its
2     principal operating office.
3         (6) In any case where the Director issues a notice of
4     apparent liability looking toward the imposition of a civil
5     penalty forfeiture under this Section that fact may not be
6     used in any other proceeding before the Director to the
7     prejudice of the respondent to whom the notice was issued,
8     unless (a) the civil penalty forfeiture has been paid, or
9     (b) a court has ordered payment of the civil penalty
10     forfeiture and that order has become final.
11         (7) When any person or company has a license or
12     certificate of authority under this Code and knowingly
13     fails or refuses to comply with a lawful order of the
14     Director requiring compliance with this Article, entered
15     after notice and hearing, within the period of time
16     specified in the order, the Director may, in addition to
17     any other penalty or authority provided, revoke or refuse
18     to renew the license or certificate of authority of such
19     person or company, or may suspend the license or
20     certificate of authority of such person or company until
21     compliance with such order has been obtained.
22         (8) When any person or company has a license or
23     certificate of authority under this Code and knowingly
24     fails or refuses to comply with any provisions of this
25     Article, the Director may, after notice and hearing, in
26     addition to any other penalty provided, revoke or refuse to
27     renew the license or certificate of authority of such
28     person or company, or may suspend the license or
29     certificate of authority of such person or company, until
30     compliance with such provision of this Article has been
31     obtained.
32         (9) No suspension or revocation under this Section may
33     become effective until 5 days from the date that the notice
34     of suspension or revocation has been personally delivered

 

 

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1     or delivered by registered or certified mail to the company
2     or person. A suspension or revocation under this Section is
3     stayed upon the filing, by the company or person, of a
4     petition for judicial review under the Administrative
5     Review Law.
6 (Source: P.A. 93-32, eff. 7-1-03.)
 
7     Section 315. The Medical Practice Act of 1987 is amended by
8 changing Sections 7, 22, 23, 24, and 36 as follows:
 
9     (225 ILCS 60/7)  (from Ch. 111, par. 4400-7)
10     (Section scheduled to be repealed on January 1, 2007)
11     Sec. 7. Medical Disciplinary Board.
12     (A) There is hereby created the Illinois State Medical
13 Disciplinary Board (hereinafter referred to as the
14 "Disciplinary Board"). The Disciplinary Board shall consist of
15 9 members, to be appointed by the Governor by and with the
16 advice and consent of the Senate. All shall be residents of the
17 State, not more than 5 of whom shall be members of the same
18 political party. Five members shall be physicians licensed to
19 practice medicine in all of its branches in Illinois possessing
20 the degree of doctor of medicine. Two shall be members of the
21 public, who shall not be engaged in any way, directly or
22 indirectly, as providers of health care. The 2 public members
23 shall act as voting members. One member shall be a physician
24 licensed to practice in Illinois possessing the degree of
25 doctor of osteopathy or osteopathic medicine. One member shall
26 be a physician licensed to practice in Illinois and possessing
27 the degree of doctor of chiropractic.
28     (B) Members of the Disciplinary Board shall be appointed
29 for terms of 4 years. Upon the expiration of the term of any
30 member, their successor shall be appointed for a term of 4
31 years by the Governor by and with the advice and consent of the
32 Senate. The Governor shall fill any vacancy for the remainder

 

 

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1 of the unexpired term by and with the advice and consent of the
2 Senate. Upon recommendation of the Board, any member of the
3 Disciplinary Board may be removed by the Governor for
4 misfeasance, malfeasance, or wilful neglect of duty, after
5 notice, and a public hearing, unless such notice and hearing
6 shall be expressly waived in writing. Each member shall serve
7 on the Disciplinary Board until their successor is appointed
8 and qualified. No member of the Disciplinary Board shall serve
9 more than 2 consecutive 4 year terms.
10     In making appointments the Governor shall attempt to insure
11 that the various social and geographic regions of the State of
12 Illinois are properly represented.
13     In making the designation of persons to act for the several
14 professions represented on the Disciplinary Board, the
15 Governor shall give due consideration to recommendations by
16 members of the respective professions and by organizations
17 therein.
18     (C) The Disciplinary Board shall annually elect one of its
19 voting members as chairperson and one as vice chairperson. No
20 officer shall be elected more than twice in succession to the
21 same office. Each officer shall serve until their successor has
22 been elected and qualified.
23     (D) (Blank).
24     (E) Four voting members of the Disciplinary Board shall
25 constitute a quorum. A vacancy in the membership of the
26 Disciplinary Board shall not impair the right of a quorum to
27 exercise all the rights and perform all the duties of the
28 Disciplinary Board. Any action taken by the Disciplinary Board
29 under this Act may be authorized by resolution at any regular
30 or special meeting and each such resolution shall take effect
31 immediately. The Disciplinary Board shall meet at least
32 quarterly. The Disciplinary Board is empowered to adopt all
33 rules and regulations necessary and incident to the powers
34 granted to it under this Act.

 

 

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1     (F) Each member, and member-officer, of the Disciplinary
2 Board shall receive a per diem stipend as the Director of the
3 Department, hereinafter referred to as the Director, shall
4 determine. The Director shall also determine the per diem
5 stipend that each ex-officio member shall receive. Each member
6 shall be paid their necessary expenses while engaged in the
7 performance of their duties.
8     (G) The Director shall select a Chief Medical Coordinator
9 and not less than 2 a Deputy Medical Coordinators Coordinator
10 who shall not be members of the Disciplinary Board. Each
11 medical coordinator shall be a physician licensed to practice
12 medicine in all of its branches, and the Director shall set
13 their rates of compensation. The Director shall assign at least
14 one medical coordinator to a region composed of Cook County and
15 such other counties as the Director may deem appropriate, and
16 such medical coordinator or coordinators shall locate their
17 office in Chicago. The Director shall assign at least one the
18 remaining medical coordinator to a region composed of the
19 balance of counties in the State, and such medical coordinator
20 or coordinators shall locate their office in Springfield. Each
21 medical coordinator shall be the chief enforcement officer of
22 this Act in his or her their assigned region and shall serve at
23 the will of the Disciplinary Board.
24     The Director shall employ, in conformity with the Personnel
25 Code, not less than one full time investigator for every 2,500
26 5000 physicians licensed in the State. Each investigator shall
27 be a college graduate with at least 2 years' investigative
28 experience or one year advanced medical education. Upon the
29 written request of the Disciplinary Board, the Director shall
30 employ, in conformity with the Personnel Code, such other
31 professional, technical, investigative, and clerical help,
32 either on a full or part-time basis as the Disciplinary Board
33 deems necessary for the proper performance of its duties.
34     (H) Upon the specific request of the Disciplinary Board,

 

 

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1 signed by either the chairman, vice chairman, or a medical
2 coordinator of the Disciplinary Board, the Department of Human
3 Services or the Department of State Police shall make available
4 any and all information that they have in their possession
5 regarding a particular case then under investigation by the
6 Disciplinary Board.
7     (I) Members of the Disciplinary Board shall be immune from
8 suit in any action based upon any disciplinary proceedings or
9 other acts performed in good faith as members of the
10 Disciplinary Board.
11     (J) The Disciplinary Board may compile and establish a
12 statewide roster of physicians and other medical
13 professionals, including the several medical specialties, of
14 such physicians and medical professionals, who have agreed to
15 serve from time to time as advisors to the medical
16 coordinators. Such advisors shall assist the medical
17 coordinators or the Disciplinary Board in their investigations
18 and participation in complaints against physicians. Such
19 advisors shall serve under contract and shall be reimbursed at
20 a reasonable rate for the services provided, plus reasonable
21 expenses incurred. While serving in this capacity, the advisor,
22 for any act undertaken in good faith and in the conduct of
23 their duties under this Section, shall be immune from civil
24 suit.
25 (Source: P.A. 93-138, eff. 7-10-03.)
 
26     (225 ILCS 60/22)  (from Ch. 111, par. 4400-22)
27     (Section scheduled to be repealed on January 1, 2007)
28     Sec. 22. Disciplinary action.
29     (A) The Department may revoke, suspend, place on
30 probationary status, refuse to renew, or take any other
31 disciplinary action as the Department may deem proper with
32 regard to the license or visiting professor permit of any
33 person issued under this Act to practice medicine, or to treat

 

 

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1 human ailments without the use of drugs and without operative
2 surgery upon any of the following grounds:
3         (1) Performance of an elective abortion in any place,
4     locale, facility, or institution other than:
5             (a) a facility licensed pursuant to the Ambulatory
6         Surgical Treatment Center Act;
7             (b) an institution licensed under the Hospital
8         Licensing Act; or
9             (c) an ambulatory surgical treatment center or
10         hospitalization or care facility maintained by the
11         State or any agency thereof, where such department or
12         agency has authority under law to establish and enforce
13         standards for the ambulatory surgical treatment
14         centers, hospitalization, or care facilities under its
15         management and control; or
16             (d) ambulatory surgical treatment centers,
17         hospitalization or care facilities maintained by the
18         Federal Government; or
19             (e) ambulatory surgical treatment centers,
20         hospitalization or care facilities maintained by any
21         university or college established under the laws of
22         this State and supported principally by public funds
23         raised by taxation.
24         (2) Performance of an abortion procedure in a wilful
25     and wanton manner on a woman who was not pregnant at the
26     time the abortion procedure was performed.
27         (3) The conviction of a felony in this or any other
28     jurisdiction, except as otherwise provided in subsection B
29     of this Section, whether or not related to practice under
30     this Act, or the entry of a guilty or nolo contendere plea
31     to a felony charge.
32         (4) Gross negligence in practice under this Act.
33         (5) Engaging in dishonorable, unethical or
34     unprofessional conduct of a character likely to deceive,

 

 

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1     defraud or harm the public.
2         (6) Obtaining any fee by fraud, deceit, or
3     misrepresentation.
4         (7) Habitual or excessive use or abuse of drugs defined
5     in law as controlled substances, of alcohol, or of any
6     other substances which results in the inability to practice
7     with reasonable judgment, skill or safety.
8         (8) Practicing under a false or, except as provided by
9     law, an assumed name.
10         (9) Fraud or misrepresentation in applying for, or
11     procuring, a license under this Act or in connection with
12     applying for renewal of a license under this Act.
13         (10) Making a false or misleading statement regarding
14     their skill or the efficacy or value of the medicine,
15     treatment, or remedy prescribed by them at their direction
16     in the treatment of any disease or other condition of the
17     body or mind.
18         (11) Allowing another person or organization to use
19     their license, procured under this Act, to practice.
20         (12) Disciplinary action of another state or
21     jurisdiction against a license or other authorization to
22     practice as a medical doctor, doctor of osteopathy, doctor
23     of osteopathic medicine or doctor of chiropractic, a
24     certified copy of the record of the action taken by the
25     other state or jurisdiction being prima facie evidence
26     thereof.
27         (13) Violation of any provision of this Act or of the
28     Medical Practice Act prior to the repeal of that Act, or
29     violation of the rules, or a final administrative action of
30     the Director, after consideration of the recommendation of
31     the Disciplinary Board.
32         (14) Dividing with anyone other than physicians with
33     whom the licensee practices in a partnership, Professional
34     Association, limited liability company, or Medical or

 

 

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1     Professional Corporation any fee, commission, rebate or
2     other form of compensation for any professional services
3     not actually and personally rendered. Nothing contained in
4     this subsection prohibits persons holding valid and
5     current licenses under this Act from practicing medicine in
6     partnership under a partnership agreement, including a
7     limited liability partnership, in a limited liability
8     company under the Limited Liability Company Act, in a
9     corporation authorized by the Medical Corporation Act, as
10     an association authorized by the Professional Association
11     Act, or in a corporation under the Professional Corporation
12     Act or from pooling, sharing, dividing or apportioning the
13     fees and monies received by them or by the partnership,
14     corporation or association in accordance with the
15     partnership agreement or the policies of the Board of
16     Directors of the corporation or association. Nothing
17     contained in this subsection prohibits 2 or more
18     corporations authorized by the Medical Corporation Act,
19     from forming a partnership or joint venture of such
20     corporations, and providing medical, surgical and
21     scientific research and knowledge by employees of these
22     corporations if such employees are licensed under this Act,
23     or from pooling, sharing, dividing, or apportioning the
24     fees and monies received by the partnership or joint
25     venture in accordance with the partnership or joint venture
26     agreement. Nothing contained in this subsection shall
27     abrogate the right of 2 or more persons, holding valid and
28     current licenses under this Act, to each receive adequate
29     compensation for concurrently rendering professional
30     services to a patient and divide a fee; provided, the
31     patient has full knowledge of the division, and, provided,
32     that the division is made in proportion to the services
33     performed and responsibility assumed by each.
34         (15) A finding by the Medical Disciplinary Board that

 

 

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1     the registrant after having his or her license placed on
2     probationary status or subjected to conditions or
3     restrictions violated the terms of the probation or failed
4     to comply with such terms or conditions.
5         (16) Abandonment of a patient.
6         (17) Prescribing, selling, administering,
7     distributing, giving or self-administering any drug
8     classified as a controlled substance (designated product)
9     or narcotic for other than medically accepted therapeutic
10     purposes.
11         (18) Promotion of the sale of drugs, devices,
12     appliances or goods provided for a patient in such manner
13     as to exploit the patient for financial gain of the
14     physician.
15         (19) Offering, undertaking or agreeing to cure or treat
16     disease by a secret method, procedure, treatment or
17     medicine, or the treating, operating or prescribing for any
18     human condition by a method, means or procedure which the
19     licensee refuses to divulge upon demand of the Department.
20         (20) Immoral conduct in the commission of any act
21     including, but not limited to, commission of an act of
22     sexual misconduct related to the licensee's practice.
23         (21) Wilfully making or filing false records or reports
24     in his or her practice as a physician, including, but not
25     limited to, false records to support claims against the
26     medical assistance program of the Department of Public Aid
27     under the Illinois Public Aid Code.
28         (22) Wilful omission to file or record, or wilfully
29     impeding the filing or recording, or inducing another
30     person to omit to file or record, medical reports as
31     required by law, or wilfully failing to report an instance
32     of suspected abuse or neglect as required by law.
33         (23) Being named as a perpetrator in an indicated
34     report by the Department of Children and Family Services

 

 

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1     under the Abused and Neglected Child Reporting Act, and
2     upon proof by clear and convincing evidence that the
3     licensee has caused a child to be an abused child or
4     neglected child as defined in the Abused and Neglected
5     Child Reporting Act.
6         (24) Solicitation of professional patronage by any
7     corporation, agents or persons, or profiting from those
8     representing themselves to be agents of the licensee.
9         (25) Gross and wilful and continued overcharging for
10     professional services, including filing false statements
11     for collection of fees for which services are not rendered,
12     including, but not limited to, filing such false statements
13     for collection of monies for services not rendered from the
14     medical assistance program of the Department of Public Aid
15     under the Illinois Public Aid Code.
16         (26) A pattern of practice or other behavior which
17     demonstrates incapacity or incompetence to practice under
18     this Act.
19         (27) Mental illness or disability which results in the
20     inability to practice under this Act with reasonable
21     judgment, skill or safety.
22         (28) Physical illness, including, but not limited to,
23     deterioration through the aging process, or loss of motor
24     skill which results in a physician's inability to practice
25     under this Act with reasonable judgment, skill or safety.
26         (29) Cheating on or attempt to subvert the licensing
27     examinations administered under this Act.
28         (30) Wilfully or negligently violating the
29     confidentiality between physician and patient except as
30     required by law.
31         (31) The use of any false, fraudulent, or deceptive
32     statement in any document connected with practice under
33     this Act.
34         (32) Aiding and abetting an individual not licensed

 

 

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1     under this Act in the practice of a profession licensed
2     under this Act.
3         (33) Violating state or federal laws or regulations
4     relating to controlled substances, legend drugs, or
5     ephedra, as defined in the Ephedra Prohibition Act.
6         (34) Failure to report to the Department any adverse
7     final action taken against them by another licensing
8     jurisdiction (any other state or any territory of the
9     United States or any foreign state or country), by any peer
10     review body, by any health care institution, by any
11     professional society or association related to practice
12     under this Act, by any governmental agency, by any law
13     enforcement agency, or by any court for acts or conduct
14     similar to acts or conduct which would constitute grounds
15     for action as defined in this Section.
16         (35) Failure to report to the Department surrender of a
17     license or authorization to practice as a medical doctor, a
18     doctor of osteopathy, a doctor of osteopathic medicine, or
19     doctor of chiropractic in another state or jurisdiction, or
20     surrender of membership on any medical staff or in any
21     medical or professional association or society, while
22     under disciplinary investigation by any of those
23     authorities or bodies, for acts or conduct similar to acts
24     or conduct which would constitute grounds for action as
25     defined in this Section.
26         (36) Failure to report to the Department any adverse
27     judgment, settlement, or award arising from a liability
28     claim related to acts or conduct similar to acts or conduct
29     which would constitute grounds for action as defined in
30     this Section.
31         (37) Failure to transfer copies of medical records as
32     required by law.
33         (38) Failure to furnish the Department, its
34     investigators or representatives, relevant information,

 

 

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1     legally requested by the Department after consultation
2     with the Chief Medical Coordinator or the Deputy Medical
3     Coordinator.
4         (39) Violating the Health Care Worker Self-Referral
5     Act.
6         (40) Willful failure to provide notice when notice is
7     required under the Parental Notice of Abortion Act of 1995.
8         (41) Failure to establish and maintain records of
9     patient care and treatment as required by this law.
10         (42) Entering into an excessive number of written
11     collaborative agreements with licensed advanced practice
12     nurses resulting in an inability to adequately collaborate
13     and provide medical direction.
14         (43) Repeated failure to adequately collaborate with
15     or provide medical direction to a licensed advanced
16     practice nurse.
17     Except for actions involving the ground numbered (26), all
18 All proceedings to suspend, revoke, place on probationary
19 status, or take any other disciplinary action as the Department
20 may deem proper, with regard to a license on any of the
21 foregoing grounds, must be commenced within 5 3 years next
22 after receipt by the Department of a complaint alleging the
23 commission of or notice of the conviction order for any of the
24 acts described herein. Except for the grounds numbered (8),
25 (9), (26), and (29), no action shall be commenced more than 10
26 5 years after the date of the incident or act alleged to have
27 violated this Section. For actions involving the ground
28 numbered (26), a pattern of practice or other behavior includes
29 all incidents alleged to be part of the pattern of practice or
30 other behavior that occurred or a report pursuant to Section 23
31 of this Act received within the 10-year period preceding the
32 filing of the complaint. In the event of the settlement of any
33 claim or cause of action in favor of the claimant or the
34 reduction to final judgment of any civil action in favor of the

 

 

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1 plaintiff, such claim, cause of action or civil action being
2 grounded on the allegation that a person licensed under this
3 Act was negligent in providing care, the Department shall have
4 an additional period of 2 years one year from the date of
5 notification to the Department under Section 23 of this Act of
6 such settlement or final judgment in which to investigate and
7 commence formal disciplinary proceedings under Section 36 of
8 this Act, except as otherwise provided by law. The Department
9 shall expunge the records of discipline solely for
10 administrative matters 3 years after final disposition or after
11 the statute of limitations has expired, whichever is later. The
12 time during which the holder of the license was outside the
13 State of Illinois shall not be included within any period of
14 time limiting the commencement of disciplinary action by the
15 Department.
16     The entry of an order or judgment by any circuit court
17 establishing that any person holding a license under this Act
18 is a person in need of mental treatment operates as a
19 suspension of that license. That person may resume their
20 practice only upon the entry of a Departmental order based upon
21 a finding by the Medical Disciplinary Board that they have been
22 determined to be recovered from mental illness by the court and
23 upon the Disciplinary Board's recommendation that they be
24 permitted to resume their practice.
25     The Department may refuse to issue or take disciplinary
26 action concerning the license of any person who fails to file a
27 return, or to pay the tax, penalty or interest shown in a filed
28 return, or to pay any final assessment of tax, penalty or
29 interest, as required by any tax Act administered by the
30 Illinois Department of Revenue, until such time as the
31 requirements of any such tax Act are satisfied as determined by
32 the Illinois Department of Revenue.
33     The Department, upon the recommendation of the
34 Disciplinary Board, shall adopt rules which set forth standards

 

 

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1 to be used in determining:
2         (a) when a person will be deemed sufficiently
3     rehabilitated to warrant the public trust;
4         (b) what constitutes dishonorable, unethical or
5     unprofessional conduct of a character likely to deceive,
6     defraud, or harm the public;
7         (c) what constitutes immoral conduct in the commission
8     of any act, including, but not limited to, commission of an
9     act of sexual misconduct related to the licensee's
10     practice; and
11         (d) what constitutes gross negligence in the practice
12     of medicine.
13     However, no such rule shall be admissible into evidence in
14 any civil action except for review of a licensing or other
15 disciplinary action under this Act.
16     In enforcing this Section, the Medical Disciplinary Board,
17 upon a showing of a possible violation, may compel any
18 individual licensed to practice under this Act, or who has
19 applied for licensure or a permit pursuant to this Act, to
20 submit to a mental or physical examination, or both, as
21 required by and at the expense of the Department. The examining
22 physician or physicians shall be those specifically designated
23 by the Disciplinary Board. The Medical Disciplinary Board or
24 the Department may order the examining physician to present
25 testimony concerning this mental or physical examination of the
26 licensee or applicant. No information shall be excluded by
27 reason of any common law or statutory privilege relating to
28 communication between the licensee or applicant and the
29 examining physician. The individual to be examined may have, at
30 his or her own expense, another physician of his or her choice
31 present during all aspects of the examination. Failure of any
32 individual to submit to mental or physical examination, when
33 directed, shall be grounds for suspension of his or her license
34 until such time as the individual submits to the examination if

 

 

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1 the Disciplinary Board finds, after notice and hearing, that
2 the refusal to submit to the examination was without reasonable
3 cause. If the Disciplinary Board finds a physician unable to
4 practice because of the reasons set forth in this Section, the
5 Disciplinary Board shall require such physician to submit to
6 care, counseling, or treatment by physicians approved or
7 designated by the Disciplinary Board, as a condition for
8 continued, reinstated, or renewed licensure to practice. Any
9 physician, whose license was granted pursuant to Sections 9,
10 17, or 19 of this Act, or, continued, reinstated, renewed,
11 disciplined or supervised, subject to such terms, conditions or
12 restrictions who shall fail to comply with such terms,
13 conditions or restrictions, or to complete a required program
14 of care, counseling, or treatment, as determined by the Chief
15 Medical Coordinator or Deputy Medical Coordinators, shall be
16 referred to the Director for a determination as to whether the
17 licensee shall have their license suspended immediately,
18 pending a hearing by the Disciplinary Board. In instances in
19 which the Director immediately suspends a license under this
20 Section, a hearing upon such person's license must be convened
21 by the Disciplinary Board within 15 days after such suspension
22 and completed without appreciable delay. The Disciplinary
23 Board shall have the authority to review the subject
24 physician's record of treatment and counseling regarding the
25 impairment, to the extent permitted by applicable federal
26 statutes and regulations safeguarding the confidentiality of
27 medical records.
28     An individual licensed under this Act, affected under this
29 Section, shall be afforded an opportunity to demonstrate to the
30 Disciplinary Board that they can resume practice in compliance
31 with acceptable and prevailing standards under the provisions
32 of their license.
33     The Department may promulgate rules for the imposition of
34 fines in disciplinary cases, not to exceed $10,000 $5,000 for

 

 

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1 each violation of this Act. Fines may be imposed in conjunction
2 with other forms of disciplinary action, but shall not be the
3 exclusive disposition of any disciplinary action arising out of
4 conduct resulting in death or injury to a patient. Any funds
5 collected from such fines shall be deposited in the Medical
6 Disciplinary Fund.
7     (B) The Department shall revoke the license or visiting
8 permit of any person issued under this Act to practice medicine
9 or to treat human ailments without the use of drugs and without
10 operative surgery, who has been convicted a second time of
11 committing any felony under the Illinois Controlled Substances
12 Act, or who has been convicted a second time of committing a
13 Class 1 felony under Sections 8A-3 and 8A-6 of the Illinois
14 Public Aid Code. A person whose license or visiting permit is
15 revoked under this subsection B of Section 22 of this Act shall
16 be prohibited from practicing medicine or treating human
17 ailments without the use of drugs and without operative
18 surgery.
19     (C) The Medical Disciplinary Board shall recommend to the
20 Department civil penalties and any other appropriate
21 discipline in disciplinary cases when the Board finds that a
22 physician willfully performed an abortion with actual
23 knowledge that the person upon whom the abortion has been
24 performed is a minor or an incompetent person without notice as
25 required under the Parental Notice of Abortion Act of 1995.
26 Upon the Board's recommendation, the Department shall impose,
27 for the first violation, a civil penalty of $1,000 and for a
28 second or subsequent violation, a civil penalty of $5,000.
29 (Source: P.A. 89-18, eff. 6-1-95; 89-201, eff. 1-1-96; 89-626,
30 eff. 8-9-96; 89-702, eff. 7-1-97; 90-742, eff. 8-13-98.)
 
31     (225 ILCS 60/23)  (from Ch. 111, par. 4400-23)
32     (Section scheduled to be repealed on January 1, 2007)
33     Sec. 23. Reports relating to professional conduct and

 

 

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1 capacity.
2     (A) Entities required to report.
3         (1) Health care institutions. The chief administrator
4     or executive officer of any health care institution
5     licensed by the Illinois Department of Public Health shall
6     report to the Disciplinary Board when any person's clinical
7     privileges are terminated or are restricted based on a
8     final determination, in accordance with that institution's
9     by-laws or rules and regulations, that a person has either
10     committed an act or acts which may directly threaten
11     patient care, and not of an administrative nature, or that
12     a person may be mentally or physically disabled in such a
13     manner as to endanger patients under that person's care.
14     Such officer also shall report if a person accepts
15     voluntary termination or restriction of clinical
16     privileges in lieu of formal action based upon conduct
17     related directly to patient care and not of an
18     administrative nature, or in lieu of formal action seeking
19     to determine whether a person may be mentally or physically
20     disabled in such a manner as to endanger patients under
21     that person's care. The Medical Disciplinary Board shall,
22     by rule, provide for the reporting to it of all instances
23     in which a person, licensed under this Act, who is impaired
24     by reason of age, drug or alcohol abuse or physical or
25     mental impairment, is under supervision and, where
26     appropriate, is in a program of rehabilitation. Such
27     reports shall be strictly confidential and may be reviewed
28     and considered only by the members of the Disciplinary
29     Board, or by authorized staff as provided by rules of the
30     Disciplinary Board. Provisions shall be made for the
31     periodic report of the status of any such person not less
32     than twice annually in order that the Disciplinary Board
33     shall have current information upon which to determine the
34     status of any such person. Such initial and periodic

 

 

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1     reports of impaired physicians shall not be considered
2     records within the meaning of The State Records Act and
3     shall be disposed of, following a determination by the
4     Disciplinary Board that such reports are no longer
5     required, in a manner and at such time as the Disciplinary
6     Board shall determine by rule. The filing of such reports
7     shall be construed as the filing of a report for purposes
8     of subsection (C) of this Section.
9         (2) Professional associations. The President or chief
10     executive officer of any association or society, of persons
11     licensed under this Act, operating within this State shall
12     report to the Disciplinary Board when the association or
13     society renders a final determination that a person has
14     committed unprofessional conduct related directly to
15     patient care or that a person may be mentally or physically
16     disabled in such a manner as to endanger patients under
17     that person's care.
18         (3) Professional liability insurers. Every insurance
19     company which offers policies of professional liability
20     insurance to persons licensed under this Act, or any other
21     entity which seeks to indemnify the professional liability
22     of a person licensed under this Act, shall report to the
23     Disciplinary Board the settlement of any claim or cause of
24     action, or final judgment rendered in any cause of action,
25     which alleged negligence in the furnishing of medical care
26     by such licensed person when such settlement or final
27     judgment is in favor of the plaintiff.
28         (4) State's Attorneys. The State's Attorney of each
29     county shall report to the Disciplinary Board all instances
30     in which a person licensed under this Act is convicted or
31     otherwise found guilty of the commission of any felony. The
32     State's Attorney of each county may report to the
33     Disciplinary Board through a verified complaint any
34     instance in which the State's Attorney believes that a

 

 

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1     physician has willfully violated the notice requirements
2     of the Parental Notice of Abortion Act of 1995.
3         (5) State agencies. All agencies, boards, commissions,
4     departments, or other instrumentalities of the government
5     of the State of Illinois shall report to the Disciplinary
6     Board any instance arising in connection with the
7     operations of such agency, including the administration of
8     any law by such agency, in which a person licensed under
9     this Act has either committed an act or acts which may be a
10     violation of this Act or which may constitute
11     unprofessional conduct related directly to patient care or
12     which indicates that a person licensed under this Act may
13     be mentally or physically disabled in such a manner as to
14     endanger patients under that person's care.
15     (B) Mandatory reporting. All reports required by items
16 (34), (35), and (36) of subsection (A) of Section 22 and by
17 Section 23 shall be submitted to the Disciplinary Board in a
18 timely fashion. The reports shall be filed in writing within 60
19 days after a determination that a report is required under this
20 Act. All reports shall contain the following information:
21         (1) The name, address and telephone number of the
22     person making the report.
23         (2) The name, address and telephone number of the
24     person who is the subject of the report.
25         (3) The name and date of birth or other means of
26     identification of any patient or patients whose treatment
27     is a subject of the report, if available, or other means of
28     identification if such information is not available,
29     identification of the hospital or other healthcare
30     facility where the care at issue in the report was
31     rendered, provided, however, no medical records may be
32     revealed without the written consent of the patient or
33     patients.
34         (4) A brief description of the facts which gave rise to

 

 

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1     the issuance of the report, including the dates of any
2     occurrences deemed to necessitate the filing of the report.
3         (5) If court action is involved, the identity of the
4     court in which the action is filed, along with the docket
5     number and date of filing of the action.
6         (6) Any further pertinent information which the
7     reporting party deems to be an aid in the evaluation of the
8     report.
9     The Department shall have the right to inform patients of
10 the right to provide written consent for the Department to
11 obtain copies of hospital and medical records. The Disciplinary
12 Board or Department may also exercise the power under Section
13 38 of this Act to subpoena copies of hospital or medical
14 records in mandatory report cases alleging death or permanent
15 bodily injury when consent to obtain records is not provided by
16 a patient or legal representative. Appropriate rules shall be
17 adopted by the Department with the approval of the Disciplinary
18 Board.
19     When the Department has received written reports
20 concerning incidents required to be reported in items (34),
21 (35), and (36) of subsection (A) of Section 22, the licensee's
22 failure to report the incident to the Department under those
23 items shall not be the sole grounds for disciplinary action.
24     Nothing contained in this Section shall act to in any way,
25 waive or modify the confidentiality of medical reports and
26 committee reports to the extent provided by law. Any
27 information reported or disclosed shall be kept for the
28 confidential use of the Disciplinary Board, the Medical
29 Coordinators, the Disciplinary Board's attorneys, the medical
30 investigative staff, and authorized clerical staff, as
31 provided in this Act, and shall be afforded the same status as
32 is provided information concerning medical studies in Part 21
33 of Article VIII of the Code of Civil Procedure, except that the
34 Department may disclose information and documents to a federal,

 

 

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1 State, or local law enforcement agency pursuant to a subpoena
2 in an ongoing criminal investigation. Furthermore, information
3 and documents disclosed to a federal, State, or local law
4 enforcement agency may be used by that agency only for the
5 investigation and prosecution of a criminal offense.
6     (C) Immunity from prosecution. Any individual or
7 organization acting in good faith, and not in a wilful and
8 wanton manner, in complying with this Act by providing any
9 report or other information to the Disciplinary Board or a peer
10 review committee, or assisting in the investigation or
11 preparation of such information, or by voluntarily reporting to
12 the Disciplinary Board or a peer review committee information
13 regarding alleged errors or negligence by a person licensed
14 under this Act, or by participating in proceedings of the
15 Disciplinary Board or a peer review committee, or by serving as
16 a member of the Disciplinary Board or a peer review committee,
17 shall not, as a result of such actions, be subject to criminal
18 prosecution or civil damages.
19     (D) Indemnification. Members of the Disciplinary Board,
20 the Medical Coordinators, the Disciplinary Board's attorneys,
21 the medical investigative staff, physicians retained under
22 contract to assist and advise the medical coordinators in the
23 investigation, and authorized clerical staff shall be
24 indemnified by the State for any actions occurring within the
25 scope of services on the Disciplinary Board, done in good faith
26 and not wilful and wanton in nature. The Attorney General shall
27 defend all such actions unless he or she determines either that
28 there would be a conflict of interest in such representation or
29 that the actions complained of were not in good faith or were
30 wilful and wanton.
31     Should the Attorney General decline representation, the
32 member shall have the right to employ counsel of his or her
33 choice, whose fees shall be provided by the State, after
34 approval by the Attorney General, unless there is a

 

 

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1 determination by a court that the member's actions were not in
2 good faith or were wilful and wanton.
3     The member must notify the Attorney General within 7 days
4 of receipt of notice of the initiation of any action involving
5 services of the Disciplinary Board. Failure to so notify the
6 Attorney General shall constitute an absolute waiver of the
7 right to a defense and indemnification.
8     The Attorney General shall determine within 7 days after
9 receiving such notice, whether he or she will undertake to
10 represent the member.
11     (E) Deliberations of Disciplinary Board. Upon the receipt
12 of any report called for by this Act, other than those reports
13 of impaired persons licensed under this Act required pursuant
14 to the rules of the Disciplinary Board, the Disciplinary Board
15 shall notify in writing, by certified mail, the person who is
16 the subject of the report. Such notification shall be made
17 within 30 days of receipt by the Disciplinary Board of the
18 report.
19     The notification shall include a written notice setting
20 forth the person's right to examine the report. Included in
21 such notification shall be the address at which the file is
22 maintained, the name of the custodian of the reports, and the
23 telephone number at which the custodian may be reached. The
24 person who is the subject of the report shall submit a written
25 statement responding, clarifying, adding to, or proposing the
26 amending of the report previously filed. The person who is the
27 subject of the report shall also submit with the written
28 statement any medical records related to the report. The
29 statement and accompanying medical records shall become a
30 permanent part of the file and must be received by the
31 Disciplinary Board no more than 30 60 days after the date on
32 which the person was notified by the Disciplinary Board of the
33 existence of the original report.
34     The Disciplinary Board shall review all reports received by

 

 

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1 it, together with any supporting information and responding
2 statements submitted by persons who are the subject of reports.
3 The review by the Disciplinary Board shall be in a timely
4 manner but in no event, shall the Disciplinary Board's initial
5 review of the material contained in each disciplinary file be
6 less than 61 days nor more than 180 days after the receipt of
7 the initial report by the Disciplinary Board.
8     When the Disciplinary Board makes its initial review of the
9 materials contained within its disciplinary files, the
10 Disciplinary Board shall, in writing, make a determination as
11 to whether there are sufficient facts to warrant further
12 investigation or action. Failure to make such determination
13 within the time provided shall be deemed to be a determination
14 that there are not sufficient facts to warrant further
15 investigation or action.
16     Should the Disciplinary Board find that there are not
17 sufficient facts to warrant further investigation, or action,
18 the report shall be accepted for filing and the matter shall be
19 deemed closed and so reported to the Director. The Director
20 shall then have 30 days to accept the Medical Disciplinary
21 Board's decision or request further investigation. The
22 Director shall inform the Board in writing of the decision to
23 request further investigation, including the specific reasons
24 for the decision. The individual or entity filing the original
25 report or complaint and the person who is the subject of the
26 report or complaint shall be notified in writing by the
27 Director of any final action on their report or complaint.
28     (F) Summary reports. The Disciplinary Board shall prepare,
29 on a timely basis, but in no event less than one every other
30 month, a summary report of final actions taken upon
31 disciplinary files maintained by the Disciplinary Board. The
32 summary reports shall be sent by the Disciplinary Board to
33 every health care facility licensed by the Illinois Department
34 of Public Health, every professional association and society of

 

 

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1 persons licensed under this Act functioning on a statewide
2 basis in this State, the American Medical Association, the
3 American Osteopathic Association, the American Chiropractic
4 Association, all insurers providing professional liability
5 insurance to persons licensed under this Act in the State of
6 Illinois, the Federation of State Medical Licensing Boards, and
7 the Illinois Pharmacists Association.
8     (G) Any violation of this Section shall be a Class A
9 misdemeanor.
10     (H) If any such person violates the provisions of this
11 Section an action may be brought in the name of the People of
12 the State of Illinois, through the Attorney General of the
13 State of Illinois, for an order enjoining such violation or for
14 an order enforcing compliance with this Section. Upon filing of
15 a verified petition in such court, the court may issue a
16 temporary restraining order without notice or bond and may
17 preliminarily or permanently enjoin such violation, and if it
18 is established that such person has violated or is violating
19 the injunction, the court may punish the offender for contempt
20 of court. Proceedings under this paragraph shall be in addition
21 to, and not in lieu of, all other remedies and penalties
22 provided for by this Section.
23 (Source: P.A. 89-18, eff. 6-1-95; 89-702, eff. 7-1-97; 90-699,
24 eff. 1-1-99.)
 
25     (225 ILCS 60/24)  (from Ch. 111, par. 4400-24)
26     (Section scheduled to be repealed on January 1, 2007)
27     Sec. 24. Report of violations; medical associations. Any
28 physician licensed under this Act, the Illinois State Medical
29 Society, the Illinois Association of Osteopathic Physicians
30 and Surgeons, the Illinois Chiropractic Society, the Illinois
31 Prairie State Chiropractic Association, or any component
32 societies of any of these 4 groups, and any other person, may
33 report to the Disciplinary Board any information the physician,

 

 

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1 association, society, or person may have that appears to show
2 that a physician is or may be in violation of any of the
3 provisions of Section 22 of this Act.
4     The Department may enter into agreements with the Illinois
5 State Medical Society, the Illinois Association of Osteopathic
6 Physicians and Surgeons, the Illinois Prairie State
7 Chiropractic Association, or the Illinois Chiropractic Society
8 to allow these organizations to assist the Disciplinary Board
9 in the review of alleged violations of this Act. Subject to the
10 approval of the Department, any organization party to such an
11 agreement may subcontract with other individuals or
12 organizations to assist in review.
13     Any physician, association, society, or person
14 participating in good faith in the making of a report, under
15 this Act or participating in or assisting with an investigation
16 or review under this Act Section shall have immunity from any
17 civil, criminal, or other liability that might result by reason
18 of those actions.
19     The medical information in the custody of an entity under
20 contract with the Department participating in an investigation
21 or review shall be privileged and confidential to the same
22 extent as are information and reports under the provisions of
23 Part 21 of Article VIII of the Code of Civil Procedure.
24     Upon request by the Department after a mandatory report has
25 been filed with the Department, an attorney for any party
26 seeking to recover damages for injuries or death by reason of
27 medical, hospital, or other healing art malpractice shall
28 provide patient records related to the physician involved in
29 the disciplinary proceeding to the Department within 30 days of
30 the Department's request for use by the Department in any
31 disciplinary matter under this Act. An attorney who provides
32 patient records to the Department in accordance with this
33 requirement shall not be deemed to have violated any
34 attorney-client privilege. Notwithstanding any other provision

 

 

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1 of law, consent by a patient shall not be required for the
2 provision of patient records in accordance with this
3 requirement.
4     For the purpose of any civil or criminal proceedings, the
5 good faith of any physician, association, society or person
6 shall be presumed. The Disciplinary Board may request the
7 Illinois State Medical Society, the Illinois Association of
8 Osteopathic Physicians and Surgeons, the Illinois Prairie
9 State Chiropractic Association, or the Illinois Chiropractic
10 Society to assist the Disciplinary Board in preparing for or
11 conducting any medical competency examination as the Board may
12 deem appropriate.
13 (Source: P.A. 88-324.)
 
14     (225 ILCS 60/36)  (from Ch. 111, par. 4400-36)
15     (Section scheduled to be repealed on January 1, 2007)
16     Sec. 36. Upon the motion of either the Department or the
17 Disciplinary Board or upon the verified complaint in writing of
18 any person setting forth facts which, if proven, would
19 constitute grounds for suspension or revocation under Section
20 22 of this Act, the Department shall investigate the actions of
21 any person, so accused, who holds or represents that they hold
22 a license. Such person is hereinafter called the accused.
23     The Department shall, before suspending, revoking, placing
24 on probationary status, or taking any other disciplinary action
25 as the Department may deem proper with regard to any license at
26 least 30 days prior to the date set for the hearing, notify the
27 accused in writing of any charges made and the time and place
28 for a hearing of the charges before the Disciplinary Board,
29 direct them to file their written answer thereto to the
30 Disciplinary Board under oath within 20 days after the service
31 on them of such notice and inform them that if they fail to
32 file such answer default will be taken against them and their
33 license may be suspended, revoked, placed on probationary

 

 

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1 status, or have other disciplinary action, including limiting
2 the scope, nature or extent of their practice, as the
3 Department may deem proper taken with regard thereto.
4     Where a physician has been found, upon complaint and
5 investigation of the Department, and after hearing, to have
6 performed an abortion procedure in a wilful and wanton manner
7 upon a woman who was not pregnant at the time such abortion
8 procedure was performed, the Department shall automatically
9 revoke the license of such physician to practice medicine in
10 Illinois.
11     Such written notice and any notice in such proceedings
12 thereafter may be served by delivery of the same, personally,
13 to the accused person, or by mailing the same by registered or
14 certified mail to the address last theretofore specified by the
15 accused in their last notification to the Department.
16     All information gathered by the Department during its
17 investigation including information subpoenaed under Section
18 23 or 38 of this Act and the investigative file shall be kept
19 for the confidential use of the Director, Disciplinary Board,
20 the Medical Coordinators, persons employed by contract to
21 advise the Medical Coordinator or the Department, the
22 Disciplinary Board's attorneys, the medical investigative
23 staff, and authorized clerical staff, as provided in this Act
24 and shall be afforded the same status as is provided
25 information concerning medical studies in Part 21 of Article
26 VIII of the Code of Civil Procedure, except that the Department
27 may disclose information and documents to a federal, State, or
28 local law enforcement agency pursuant to a subpoena in an
29 ongoing criminal investigation. Furthermore, information and
30 documents disclosed to a federal, State, or local law
31 enforcement agency may be used by that agency only for the
32 investigation and prosecution of a criminal offense.
33 (Source: P.A. 90-699, eff. 1-1-99.)
 

 

 

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1     Section 320. The Clerks of Courts Act is amended by adding
2 Section 27.10 as follows:
 
3     (705 ILCS 105/27.10 new)
4     Sec. 27.10. Director of Insurance. Each clerk of the
5 circuit court shall provide to the Director of Insurance such
6 information as the Director of Insurance requests under Section
7 155.19 of the Illinois Insurance Code.
 
8     Section 325. The Health Care Arbitration Act is amended by
9 changing Sections 8 and 9 as follows:
 
10     (710 ILCS 15/8)  (from Ch. 10, par. 208)
11     Sec. 8. Conditions. Every health care arbitration
12 agreement shall be subject to the following conditions:
13     (a) The agreement is not a condition to the rendering of
14 health care services by any party and the agreement has been
15 executed by the recipient of health care services at the
16 inception of or during the term of provision of services for a
17 specific cause by either a health care provider or a hospital;
18 and
19     (b) The agreement is a separate instrument complete in
20 itself and not a part of any other contract or instrument and
21 an executed copy of the agreement shall be provided to the
22 patient or the patient's legal representative upon signing; and
23     (c) The agreement may not limit, impair, or waive any
24 substantive rights or defenses of any party, including the
25 statute of limitations; and
26     (d) The agreement shall not limit, impair, or waive the
27 procedural rights to be heard, to present material evidence, to
28 cross-examine witnesses, and to be represented by an attorney,
29 or other procedural rights of due process of any party.
30     (e) As a part of the discharge planning process the patient
31 or, if appropriate, members of his family must be given a copy

 

 

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1 of the health care arbitration agreement previously executed by
2 or for the patient and shall re-affirm it.
3     Failure to comply with this provision during the discharge
4 planning process shall void the health care arbitration
5 agreement.
6     (e) This amendatory Act of the 93rd General Assembly
7 applies to health care arbitration agreements executed on or
8 after its effective date.
9 (Source: P.A. 80-1012.)
 
10     (710 ILCS 15/9)  (from Ch. 10, par. 209)
11     Sec. 9. Mandatory Provisions.
12     (a) Every health care arbitration agreement shall be
13 clearly captioned "Health Care Arbitration Agreement".
14     (b) Every health care arbitration agreement in relation to
15 health care services rendered during hospitalization shall
16 specify the date of commencement of hospitalization. Every
17 health care arbitration agreement in relation to health care
18 services not rendered during hospitalization shall state the
19 specific cause for which the services are provided.
20     (c) Every health care arbitration agreement may be
21 cancelled by any signatory (1) within 120 60 days of its
22 execution or within 120 60 days of the date of the patient's
23 discharge from the hospital, whichever is later, as to an
24 agreement in relation to health care services rendered during
25 hospitalization, provided, that if executed other than at the
26 time of discharge of the patient from the hospital, the health
27 care arbitration agreement be reaffirmed at the time of the
28 discharge planning process in the same manner as provided for
29 in the execution of the original agreement; or (2) within 120
30 60 days of the date of its execution, or the last date of
31 treatment by the health care provider, whichever is later, as
32 to an agreement in relation to health care services not
33 rendered during hospitalization. Provided, that no health care

 

 

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1 arbitration agreement shall be valid after 4 2 years from the
2 date of its execution. An employee of a hospital or health care
3 provider who is not a signatory to an agreement may cancel such
4 agreement as to himself until 30 days following his
5 notification that he is a party to a dispute or issue on which
6 arbitration has been demanded pursuant to such agreement. If
7 any person executing a health care arbitration agreement dies
8 before the period of cancellation as outlined above, the
9 personal representative of the decedent shall have the right to
10 cancel the health care arbitration agreement within 60 days of
11 the date of his appointment as the legal representative of the
12 decedent's estate. Provided, that if no legal representative is
13 appointed within 6 months of the death of said decedent the
14 next of kin of such decedent shall have the right to cancel the
15 health care arbitration agreement within 8 months from the date
16 of death.
17     (d) Every health care arbitration agreement shall contain
18 immediately above the signature lines, in upper case type in
19 printed letters of at least 3/16 inch height, a caption and
20 paragraphs as follows:
21
"AGREEMENT TO ARBITRATE HEALTH CARE
22 NEGLIGENCE CLAIMS
23 NOTICE TO PATIENT
24     YOU CANNOT BE REQUIRED TO SIGN THIS AGREEMENT IN ORDER TO
25     RECEIVE TREATMENT. BY SIGNING THIS AGREEMENT, YOUR RIGHT TO
26     TRIAL BY A JURY OR A JUDGE IN A COURT WILL BE BARRED AS TO
27     ANY DISPUTE RELATING TO INJURIES THAT MAY RESULT FROM
28     NEGLIGENCE DURING YOUR TREATMENT OR CARE, AND WILL BE
29     REPLACED BY AN ARBITRATION PROCEDURE.
30     THIS AGREEMENT MAY BE CANCELLED WITHIN 120 60 DAYS OF
31     SIGNING OR 120 60 DAYS AFTER YOUR HOSPITAL DISCHARGE,
32     WHICHEVER IS LATER, OR 120 60 DAYS AFTER YOUR LAST MEDICAL
33     TREATMENT IN RELATION TO HEALTH CARE SERVICES NOT RENDERED
34     DURING HOSPITALIZATION.

 

 

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1     THIS AGREEMENT PROVIDES THAT ANY CLAIMS WHICH MAY ARISE OUT
2     OF YOUR HEALTH CARE WILL BE SUBMITTED TO A PANEL OF
3     ARBITRATORS, RATHER THAN TO A COURT FOR DETERMINATION. THIS
4     AGREEMENT REQUIRES ALL PARTIES SIGNING IT TO ABIDE BY THE
5     DECISION OF THE ARBITRATION PANEL."
6     (e) An an executed copy of the AGREEMENT TO ARBITRATE
7 HEALTH CARE CLAIMS and any reaffirmation of that agreement as
8 required by this Act shall be given to the patient or the
9 patient's legally authorized representative upon signing
10 during the time of the discharge planning process or at the
11 time of discharge.
12     (f) This amendatory Act of the 93rd General Assembly
13 applies to health care arbitration agreements executed on or
14 after its effective date.
15 (Source: P.A. 91-156, eff. 1-1-00.)
 
16     Section 330. The Code of Civil Procedure is amended by
17 reenacting and changing Sections 2-402, 2-622, 2-1107.1, and
18 8-2501, by changing Sections 2-1704 and 8-1901, and by adding
19 Sections 2-1105.01 and 2-1721 as follows:
 
20     (735 ILCS 5/2-402)   (from Ch. 110, par. 2-402)
21     (Text of Section WITHOUT the changes made by P.A. 89-7,
22 which has been held unconstitutional)
23     Sec. 2-402. Respondents in discovery. The plaintiff in any
24 civil action may designate as respondents in discovery in his
25 or her pleading those individuals or other entities, other than
26 the named defendants, believed by the plaintiff to have
27 information essential to the determination of who should
28 properly be named as additional defendants in the action.
29     Persons or entities so named as respondents in discovery
30 shall be required to respond to discovery by the plaintiff in
31 the same manner as are defendants and may, on motion of the
32 plaintiff, be added as defendants if the evidence discloses the

 

 

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1 existence of probable cause for such action.
2     A person or entity named a respondent in discovery may upon
3 his or her own motion be made a defendant in the action, in
4 which case the provisions of this Section are no longer
5 applicable to that person.
6     A copy of the complaint shall be served on each person or
7 entity named as a respondent in discovery.
8     Each respondent in discovery shall be paid expenses and
9 fees as provided for witnesses.
10     A person or entity named as a respondent in discovery in
11 any civil action may be made a defendant in the same action at
12 any time within 6 months after being named as a respondent in
13 discovery, even though the time during which an action may
14 otherwise be initiated against him or her may have expired
15 during such 6 month period. An extension from the original
16 6-month period for good cause may be granted only once for up
17 to 90 days for (i) withdrawal of plaintiff's counsel or (ii)
18 good cause. Notwithstanding the limitations in this Section,
19 the court may grant additional reasonable extensions from this
20 6-month period for a failure or refusal on the part of the
21 respondent to comply with timely filed discovery.
22     This amendatory Act of the 93rd General Assembly applies to
23 causes of action pending on or after its effective date.
24 (Source: P.A. 86-483.)
 
25     (735 ILCS 5/2-622)  (from Ch. 110, par. 2-622)
26     (Text of Section WITHOUT the changes made by P.A. 89-7,
27 which has been held unconstitutional)
28     Sec. 2-622. Healing art malpractice.
29     (a) In any action, whether in tort, contract or otherwise,
30 in which the plaintiff seeks damages for injuries or death by
31 reason of medical, hospital, or other healing art malpractice,
32 the plaintiff's attorney or the plaintiff, if the plaintiff is
33 proceeding pro se, shall file an affidavit, attached to the

 

 

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1 original and all copies of the complaint, declaring one of the
2 following:
3         1. That the affiant has consulted and reviewed the
4     facts of the case with a health professional who the
5     affiant reasonably believes: (i) is knowledgeable in the
6     relevant issues involved in the particular action; (ii)
7     practices or has practiced within the last 5 6 years or
8     teaches or has taught within the last 5 6 years in the same
9     area of health care or medicine that is at issue in the
10     particular action; and (iii) meets the expert witness
11     standards set forth in paragraphs (a) through (d) of
12     Section 8-2501; is qualified by experience or demonstrated
13     competence in the subject of the case; that the reviewing
14     health professional has determined in a written report,
15     after a review of the medical record and other relevant
16     material involved in the particular action that there is a
17     reasonable and meritorious cause for the filing of such
18     action; and that the affiant has concluded on the basis of
19     the reviewing health professional's review and
20     consultation that there is a reasonable and meritorious
21     cause for filing of such action. A single written report
22     must be filed to cover each defendant in the action. As to
23     defendants who are individuals, the If the affidavit is
24     filed as to a defendant who is a physician licensed to
25     treat human ailments without the use of drugs or medicines
26     and without operative surgery, a dentist, a podiatrist, a
27     psychologist, or a naprapath, The written report must be
28     from a health professional licensed in the same profession,
29     with the same class of license, as the defendant. For
30     written reports affidavits filed as to all other
31     defendants, who are not individuals, the written report
32     must be from a physician licensed to practice medicine in
33     all its branches who is qualified by experience with the
34     standard of care, methods, procedures and treatments

 

 

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1     relevant to the allegations at issue in the case. In either
2     event, the written report affidavit must identify the
3     profession of the reviewing health professional. A copy of
4     the written report, clearly identifying the plaintiff and
5     the reasons for the reviewing health professional's
6     determination that a reasonable and meritorious cause for
7     the filing of the action exists, must be attached to the
8     affidavit, but information which would identify the
9     reviewing health professional may be deleted from the copy
10     so attached. The report must contain the affirmations set
11     forth in items (i) through (iii) of this paragraph 1. At
12     the first Supreme Court Rule 218 case management
13     conference, the plaintiff shall present to the court the
14     original signed health professional's report, along with
15     the health professional's current license number and state
16     of licensure and curriculum vitae, for an in camera
17     inspection. The court shall verify whether the report and
18     affidavit comply with the requirements of this paragraph 1.
19     The court, in verifying whether the report and affidavit
20     comply with the requirements of this paragraph 1, shall
21     determine whether the health professional preparing the
22     report is qualified and the determination shall be either
23     in writing or transcribed. If the court finds that the
24     report, the health professional's current license
25     information or curriculum vitae, or the affidavit is
26     deficient, the court may request from the plaintiff all
27     documents it deems necessary to make its decision and shall
28     allow for a reasonable opportunity to provide any requested
29     documents and to amend that report or affidavit; provided,
30     if the statute of limitations has tolled, the judge may
31     grant only one extension not exceeding 120 days. The
32     court's verification as to whether the health professional
33     preparing the report is qualified shall be issued to all
34     parties and be made a part of the official record. The

 

 

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1     original report, the health professional's current license
2     number and state of licensure and curriculum vitae, and any
3     documents requested by the court shall remain under seal
4     and part of the court record. Notwithstanding the other
5     provisions of this Section, the judge may disclose the name
6     and address of the reviewing health professional upon a
7     showing of good cause by the defendant who in good faith
8     challenges the qualifications of the health professional
9     based on information available to the defendant. If the
10     information is disclosed at the trial level, then it shall
11     be confidential and it shall not be disclosed by the
12     defendant to a third party.
13         2. That the affiant was unable to obtain a consultation
14     required by paragraph 1 because a statute of limitations
15     would impair the action and the consultation required could
16     not be obtained before the expiration of the statute of
17     limitations. If an affidavit is executed pursuant to this
18     paragraph, the affidavit certificate and written report
19     required by paragraph 1 shall be filed within 90 days after
20     the filing of the complaint. No additional 90-day
21     extensions pursuant to this paragraph shall be granted,
22     except where there has been a withdrawal of the plaintiff's
23     counsel. The defendant shall be excused from answering or
24     otherwise pleading until 30 days after being served with an
25     affidavit and a report a certificate required by paragraph
26     1.
27         3. That a request has been made by the plaintiff or his
28     attorney for examination and copying of records pursuant to
29     Part 20 of Article VIII of this Code and the party required
30     to comply under those Sections has failed to produce such
31     records within 60 days of the receipt of the request. If an
32     affidavit is executed pursuant to this paragraph, the
33     affidavit certificate and written report required by
34     paragraph 1 shall be filed within 90 days following receipt

 

 

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1     of the requested records. All defendants except those whose
2     failure to comply with Part 20 of Article VIII of this Code
3     is the basis for an affidavit under this paragraph shall be
4     excused from answering or otherwise pleading until 30 days
5     after being served with the affidavit and report
6     certificate required by paragraph 1.
7     (b) Where an affidavit a certificate and written report are
8 required pursuant to this Section a separate affidavit
9 certificate and written report shall be filed as to each
10 defendant who has been named in the complaint and shall be
11 filed as to each defendant named at a later time.
12     (c) Where the plaintiff intends to rely on the doctrine of
13 "res ipsa loquitur", as defined by Section 2-1113 of this Code,
14 the affidavit certificate and written report must state that,
15 in the opinion of the reviewing health professional, negligence
16 has occurred in the course of medical treatment. The affiant
17 shall certify upon filing of the complaint that he is relying
18 on the doctrine of "res ipsa loquitur".
19     (d) When the attorney intends to rely on the doctrine of
20 failure to inform of the consequences of the procedure, the
21 attorney shall certify upon the filing of the complaint that
22 the reviewing health professional has, after reviewing the
23 medical record and other relevant materials involved in the
24 particular action, concluded that a reasonable health
25 professional would have informed the patient of the
26 consequences of the procedure.
27     (e) Allegations and denials in the affidavit, made without
28 reasonable cause and found to be untrue, shall subject the
29 party pleading them or his attorney, or both, to the payment of
30 reasonable expenses, actually incurred by the other party by
31 reason of the untrue pleading, together with reasonable
32 attorneys' fees to be summarily taxed by the court upon motion
33 made within 30 days of the judgment or dismissal. In no event
34 shall the award for attorneys' fees and expenses exceed those

 

 

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1 actually paid by the moving party, including the insurer, if
2 any. In proceedings under this paragraph (e), the moving party
3 shall have the right to depose and examine any and all
4 reviewing health professionals who prepared reports used in
5 conjunction with an affidavit required by this Section.
6     (f) A reviewing health professional who in good faith
7 prepares a report used in conjunction with an affidavit
8 required by this Section shall have civil immunity from
9 liability which otherwise might result from the preparation of
10 such report.
11     (g) The failure of the plaintiff to file an affidavit and
12 report in compliance with to file a certificate required by
13 this Section shall be grounds for dismissal under Section
14 2-619.
15      (h) This Section does not apply to or affect any actions
16 pending at the time of its effective date, but applies to cases
17 filed on or after its effective date.
18      (i) This amendatory Act of 1997 does not apply to or
19 affect any actions pending at the time of its effective date,
20 but applies to cases filed on or after its effective date.
21     (j) This amendatory Act of the 93rd General Assembly
22 applies to causes of action accruing on or after its effective
23 date.
24 (Source: P.A. 86-646; 90-579, eff. 5-1-98.)
 
25     (735 ILCS 5/2-1105.01 new)
26     Sec. 2-1105.01. Personal assets protected in healing art
27 malpractice cases. In all cases, whether tort, contract, or
28 otherwise, in which the plaintiff seeks damages by reason of
29 medical healing art malpractice, a physician who maintains at
30 least a minimum of $1,000,000 in professional liability
31 insurance coverage to cover a claim against him or her is
32 entitled to an exemption of his or her assets from attachment,
33 garnishment, or other form of forfeiture to satisfy any

 

 

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1 judgment or verdict in the amount equal to 2 times the maximum
2 amount payable per occurrence under his or her insurance
3 coverage. Corporate assets are subject to attachment for
4 satisfaction of a judgment. For the purposes of this Section,
5 "asset" includes, without limitation, any asset, property
6 (real or personal), interest, or other thing of value, of any
7 kind or character whatsoever that would otherwise be subject to
8 immediate execution to satisfy a judgment.
9     This Section shall not restrict, impair, or otherwise
10 affect the amount of damages that may be awarded to the
11 plaintiff or the amount of any judgment in favor of the
12 plaintiff. This Section shall not restrict, impair, or
13 otherwise affect the statutory and common law causes of action
14 a physician or the physician's assignee has against the
15 physician's insurer for the insurer acting in bad faith or
16 vexatiously and without reasonable cause by failing to settle
17 the action against the physician within the physician's
18 insurance policy limits. The plaintiff shall be required to
19 prove all the elements of any such cause of action. This
20 Section shall not reduce or limit the damages that otherwise
21 would have been recoverable in any such action.
 
22     (735 ILCS 5/2-1107.1)  (from Ch. 110, par. 2-1107.1)
23     (Text of Section WITHOUT the changes made by P.A. 89-7,
24 which has been held unconstitutional)
25     Sec. 2-1107.1. Jury instruction in tort actions.
26     (a) In all actions on account of bodily injury or death or
27 physical damage to property based on negligence, or product
28 liability based on strict tort liability, the court shall
29 instruct the jury in writing that the defendant shall be found
30 not liable if the jury finds that the contributory fault of the
31 plaintiff is more than 50% of the proximate cause of the injury
32 or damage for which recovery is sought.
33     (b) In all healing art malpractice actions, the court shall

 

 

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1 instruct the jury in writing whether or not any award of
2 compensatory damages will be taxable under federal or State
3 income tax law.
4     The changes to this Section made by this amendatory Act of
5 the 93rd General Assembly apply to causes of action filed on or
6 after its effective date.
7 (Source: P.A. 84-1431.)
 
8     (735 ILCS 5/2-1704)  (from Ch. 110, par. 2-1704)
9     Sec. 2-1704. Healing art malpractice Medical Malpractice
10 Action. As used in this Code Part, "healing art medical
11 malpractice action" means any action, whether in tort, contract
12 or otherwise, in which the plaintiff seeks damages for injuries
13 or death by reason of medical, hospital, or other healing art
14 malpractice including but not limited to medical, hospital,
15 nursing, dental, or podiatric malpractice. The term "healing
16 art" shall not include care and treatment by spiritual means
17 through prayer in accord with the tenets and practices of a
18 recognized church or religious denomination.
19 (Source: P.A. 84-7.)
 
20     (735 ILCS 5/2-1721 new)
21     Sec. 2-1721. Hospitals; apparent or ostensible agency.
22     (a) A hospital shall not be liable for the conduct of a
23 non-employee member of its medical staff under any claim based
24 upon apparent or ostensible agency as a matter of law,
25 provided:
26         (1) the patient was unconscious or unaware of his or
27     her surroundings upon arrival at the hospital and the
28     patient's legal representative was not present at the time
29     to be informed that the non-employee member of its medical
30     staff is not an agent or employee of the hospital; or
31         (2) the specific member of the hospital's medical staff
32     personally informed the patient, or his or her legal

 

 

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1     representative, if present, before rendering treatment
2     that he or she was not an agent or employee of the
3     hospital.
4     (b) A hospital shall not be liable for the conduct of a
5 non-employee member of its medical staff under any claim based
6 upon apparent or ostensible agency, provided:
7         (1) the following disclosure is provided to the patient
8     prior to the provision of the care in question in a
9     separate document, complete in itself and not part of any
10     other contract or instrument, which shall contain in upper
11     case type in printed letters of at least 3/16 inch height a
12     caption and statement as follows:
13     
NOTICE OF STATUS OF TREATING PHYSICIANS
14     SOME PHYSICIANS WHO WILL TREAT YOU AT THIS HOSPITAL MAY NOT
15     BE EMPLOYEES OF THE HOSPITAL AND AS SUCH, THE HOSPITAL IS
16     NOT RESPONSIBLE FOR ANY CONDUCT OF ANY NON-EMPLOYEE
17     PHYSICIANS ON THE BASIS THAT THEY ARE HOSPITAL AGENTS OR
18     EMPLOYEES; and
19         (2) if the patient is asked to sign the disclosure, the
20     disclosure shall contain immediately above the signature
21     lines, in upper case bold type printed letters of at least
22     3/16 inch height, a statement that the patient cannot be
23     required to sign the disclosure in order to receive
24     treatment; and
25         (3) the patient was not required to sign the disclosure
26     in order to receive treatment; and
27         (4) such disclosure is provided in a reasonable and
28     meaningful manner. In determining if a disclosure
29     satisfies the requirements of this item (4), the trier of
30     fact shall consider only the following factors:
31             (A) Whether the patient knowingly and voluntarily
32         signed the disclosure.
33             (B) Whether the hospital provided an opportunity
34         for the patient to ask questions.

 

 

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1             (C) Whether the patient's questions about this
2         disclosure were answered and the contents of the
3         answers.
4             (D) Whether such disclosure was provided orally
5         and in writing.
6             (E) Whether a reasonable person under the
7         circumstances should have understood the disclosure.
8     As used in this subsection (b), "patient" refers to the
9 patient or any legal representative of the patient.
10     (c) Nothing in this Section shall be construed as imposing
11 an obligation on a hospital to provide any particular health
12 care service, treatment, or procedure to a patient.
13     (d) Nothing in this Section precludes any other defense to
14 a claim of apparent or ostensible agency.
15     (e) This amendatory Act of the 93rd General Assembly
16 applies to causes of action accruing on or after its effective
17 date.
 
18     (735 ILCS 5/8-1901)  (from Ch. 110, par. 8-1901)
19     Sec. 8-1901. Admission of liability - Effect.
20     (a) The providing of, or payment for, medical, surgical,
21 hospital, or rehabilitation services, facilities, or equipment
22 by or on behalf of any person, or the offer to provide, or pay
23 for, any one or more of the foregoing, shall not be construed
24 as an admission of any liability by such person or persons.
25 Testimony, writings, records, reports or information with
26 respect to the foregoing shall not be admissible in evidence as
27 an admission of any liability in any action of any kind in any
28 court or before any commission, administrative agency, or other
29 tribunal in this State, except at the instance of the person or
30 persons so making any such provision, payment or offer.
31     (b) Any expression of grief, apology, or explanation
32 provided by a health care provider, including, but not limited
33 to, a statement that the health care provider is "sorry" for

 

 

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1 the outcome to a patient, the patient's family, or the
2 patient's legal representative about an inadequate or
3 unanticipated treatment or care outcome that is provided within
4 72 hours of when the provider knew or should have known of the
5 potential cause of such outcome shall not be admissible as
6 evidence in any action of any kind in any court or before any
7 tribunal, board, agency, or person. The disclosure of any such
8 information, whether proper, or improper, shall not waive or
9 have any effect upon its confidentiality or inadmissibility. As
10 used in this Section, a "health care provider" is any hospital,
11 nursing home or other facility, or employee or agent thereof, a
12 physician, or other licensed health care professional. Nothing
13 in this Section precludes the discovery or admissibility of any
14 other facts regarding the patient's treatment or outcome as
15 otherwise permitted by law.
16 (Source: P.A. 82-280.)
 
17     (735 ILCS 5/8-2501)  (from Ch. 110, par. 8-2501)
18     (Text of Section WITHOUT the changes made by P.A. 89-7,
19 which has been held unconstitutional)
20     Sec. 8-2501. Expert Witness Standards. In any case in which
21 the standard of care applicable to given by a medical
22 professional profession is at issue, the court shall apply the
23 following standards to determine if a witness qualifies as an
24 expert witness and can testify on the issue of the appropriate
25 standard of care.
26     (a) Whether the witness is board certified or board
27 eligible, or has completed a residency, in the same or
28 substantially similar medical specialties as the defendant and
29 is otherwise qualified by significant experience with the
30 standard of care, methods, procedures, and treatments relevant
31 to the allegations against the defendant Relationship of the
32 medical specialties of the witness to the medical problem or
33 problems and the type of treatment administered in the case;

 

 

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1     (b) Whether the witness has devoted a majority substantial
2 portion of his or her work time to the practice of medicine,
3 teaching or University based research in relation to the
4 medical care and type of treatment at issue which gave rise to
5 the medical problem of which the plaintiff complains;
6     (c) whether the witness is licensed in the same profession
7 with the same class of license as the defendant if the
8 defendant is an individual; and
9     (d) whether, in the case against a nonspecialist, the
10 witness can demonstrate a sufficient familiarity with the
11 standard of care practiced in this State.
12     An expert shall provide evidence of active practice,
13 teaching, or engaging in university-based research. If
14 retired, an expert must provide evidence of attendance and
15 completion of continuing education courses for 3 years previous
16 to giving testimony. An expert who has not actively practiced,
17 taught, or been engaged in university-based research, or any
18 combination thereof, during the preceding 5 years may not be
19 qualified as an expert witness.
20     This amendatory Act of the 93rd General Assembly applies to
21 causes of action filed on or after its effective date.
22 (Source: P.A. 84-7.)
 
23     Section 340. The Good Samaritan Act is amended by changing
24 Section 30 as follows:
 
25     (745 ILCS 49/30)
26     Sec. 30. Free medical clinic; exemption from civil
27 liability for services performed without compensation.
28     (a) A person licensed under the Medical Practice Act of
29 1987, a person licensed to practice the treatment of human
30 ailments in any other state or territory of the United States,
31 or a health care professional, including but not limited to an
32 advanced practice nurse, retired physician, physician

 

 

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1 assistant, nurse, pharmacist, physical therapist, podiatrist,
2 or social worker licensed in this State or any other state or
3 territory of the United States, who, in good faith, provides
4 medical treatment, diagnosis, or advice as a part of the
5 services of an established free medical clinic providing care,
6 including but not limited to home visits, without charge to
7 medically indigent patients which is limited to care that does
8 not require the services of a licensed hospital or ambulatory
9 surgical treatment center and who receives no fee or
10 compensation from that source shall not be liable for civil
11 damages as a result of his or her acts or omissions in
12 providing that medical treatment, except for willful or wanton
13 misconduct.
14     (b) For purposes of this Section, a "free medical clinic"
15 is an organized community based program providing medical care
16 without charge to individuals unable to pay for it, at which
17 the care provided does not include the use of general
18 anesthesia or require an overnight stay in a health-care
19 facility.
20     (c) The provisions of subsection (a) of this Section do not
21 apply to a particular case unless the free medical clinic has
22 posted in a conspicuous place on its premises an explanation of
23 the exemption from civil liability provided herein.
24     (d) The immunity from civil damages provided under
25 subsection (a) also applies to physicians, retired physicians,
26 hospitals, and other health care providers that provide further
27 medical treatment, diagnosis, or advice, including but not
28 limited to hospitalization, office visits, and home visits, to
29 a patient upon referral from an established free medical clinic
30 without fee or compensation.
31     (d-5) A free medical clinic may receive reimbursement from
32 the Illinois Department of Public Aid, provided any
33 reimbursements shall be used only to pay overhead expenses of
34 operating the free medical clinic and may not be used, in whole

 

 

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1 or in part, to provide a fee or other compensation to any
2 person licensed under the Medical Practice Act of 1987 or any
3 other health care professional who is receiving an exemption
4 under this Section. Any health care professional receiving an
5 exemption under this Section may not receive any fee or other
6 compensation in connection with any services provided to, or
7 any ownership interest in, the clinic. Medical care shall not
8 include an overnight stay in a health care facility.
9     (e) Nothing in this Section prohibits a free medical clinic
10 from accepting voluntary contributions for medical services
11 provided to a patient who has acknowledged his or her ability
12 and willingness to pay a portion of the value of the medical
13 services provided.
14     (f) Any voluntary contribution collected for providing
15 care at a free medical clinic shall be used only to pay
16 overhead expenses of operating the clinic. No portion of any
17 moneys collected shall be used to provide a fee or other
18 compensation to any person licensed under Medical Practice Act
19 of 1987.
20     (g) This amendatory Act of the 93rd General Assembly
21 applies to causes of action accruing on or after its effective
22 date.
23 (Source: P.A. 89-607, eff. 1-1-97; 90-742, eff. 8-13-98.)
 
24
ARTICLE 4. SORRY WORKS! PILOT PROGRAM ACT

 
25     Section 401. Short title. This Article 4 may be cited as
26 the Sorry Works! Pilot Program Act, and references in this
27 Article to "this Act" mean this Article.
 
28     Section 405. Sorry Works! pilot program. The Sorry Works!
29 pilot program is established. During the first year of the
30 program's operation, participation in the program shall be open
31 to one hospital. Hospitals may participate only with the

 

 

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1 approval of the hospital administration and the hospital's
2 organized medical staff. During the second year of the
3 program's operation, participation in the program shall be open
4 to one additional hospital.
5     The first participating hospital selected by the committee
6 established under Section 410 shall be located in a county with
7 a population greater than 200,000 that is contiguous with the
8 Mississippi River.
9     Under the program, participating hospitals and physicians
10 shall promptly acknowledge and apologize for mistakes in
11 patient care and promptly offer fair settlements.
12 Participating hospitals shall encourage patients and families
13 to retain their own legal counsel to ensure that their rights
14 are protected and to help facilitate negotiations for fair
15 settlements. Participating hospitals shall report to the
16 committee their total costs for healing art malpractice
17 verdicts, settlements, and defense litigation for the
18 preceding 5 years to enable the committee to determine average
19 costs for that hospital during that period. The committee shall
20 develop standards and protocols to compare costs for cases
21 handled by traditional means and cases handled under the Sorry
22 Works! protocol.
23     If the committee determines that the total costs of cases
24 handled under the Sorry Works! protocol by a hospital
25 participating in the program exceed the total costs that would
26 have been incurred if the cases had been handled by traditional
27 means, the hospital may apply for a grant from the Sorry Works!
28 Fund, a special fund that is created in the State Treasury, for
29 an amount, as determined by the committee, by which the total
30 costs exceed the total costs that would have been incurred if
31 the cases had been handled by traditional means; however, the
32 total of all grants from the Fund for cases in any single
33 participating hospital in any year may not exceed the amount in
34 the Fund or $2,000,000, whichever is less. All grants shall be

 

 

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1 subject to appropriation. Moneys in the Fund shall consist of
2 funds transferred into the Fund or otherwise made available
3 from any source.
 
4     Section 410. Establishment of committee.
5     (a) A committee is established to develop, oversee, and
6 implement the Sorry Works! pilot program. The committee shall
7 have 10 members, each of whom shall be a voting member. Six
8 members of the committee shall constitute a quorum. The
9 committee shall be comprised as follows:
10         (1) The President of the Senate, the Minority Leader of
11     the Senate, the Speaker of the House of Representatives,
12     and the Minority Leader of the House of Representatives
13     shall each appoint 2 members.
14         (2) The Director of Professional Regulation or his or
15     her designee.
16         (3) The Director of Insurance or his or her designee.
17     (b) The committee shall establish criteria for the program,
18 including but not limited to: selection of hospitals,
19 physicians, and insurers to participate in the program; and
20 creation of a subcommittee to review cases from hospitals and
21 determine whether hospitals, physicians, and insurers are
22 entitled to compensation under the program.
23     (c) The committee shall communicate with hospitals,
24 physicians, and insurers that are interested in participating
25 in the program. The committee shall make final decisions as to
26 which applicants are accepted for the program.
27     (d) The committee shall report to the Governor and the
28 General Assembly annually.
29     (e) The committee shall publish data regarding the program.
30     (f) Committee members shall receive no compensation for the
31 performance of their duties as members, but each member shall
32 be paid necessary expenses while engaged in the performance of
33 those duties.
 

 

 

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1     Section 415. Termination of program.
2     (a) The program may be terminated at any time if the
3 committee, by a vote of two-thirds of its members, votes to
4 terminate the program.
5     (b) If the program is not terminated under subsection (a),
6 the program shall terminate after its second year of operation.
 
7     Section 495. The State Finance Act is amended by adding
8 Section 5.626 as follows:
 
9     (30 ILCS 105/5.626 new)
10     Sec. 5.626. The Sorry Works! Fund.
 
11
ARTICLE 9. MISCELLANEOUS PROVISIONS

 
12     Section 995. Liberal construction; inseverability.
13     (a) This Act, being necessary for the welfare of the State
14 and its inhabitants, shall be liberally construed to effect its
15 purposes.
16     (b) The provisions of this Act are mutually dependent and
17 inseverable. If any provision is held invalid other than as
18 applied to a particular person or circumstance, then this
19 entire Act is invalid.
 
20     Section 999. Effective date. This Act takes effect upon
21 becoming law.".