093_HB1557

 
                                     LRB093 05228 MKM 05290 b

 1        AN ACT in relation to health care facilities.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5. The Illinois Health Facilities Planning Act is
 5    amended by changing Sections 3, 4, 4.2, 5, 5.3,  6,  10,  12,
 6    12.2, 13, and 19.6 and by adding Section 12.3 as follows:

 7        (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
 8        (Section scheduled to be repealed on July 1, 2003)
 9        Sec. 3.  Definitions.  As used in this Act:
10        "Health care facilities" means and includes the following
11    facilities and organizations:
12             1.  An ambulatory surgical treatment center required
13        to  be  licensed  pursuant  to  the  Ambulatory  Surgical
14        Treatment Center Act;
15             2.  An   institution,  place,  building,  or  agency
16        required  to  be  licensed  pursuant  to   the   Hospital
17        Licensing Act;
18             3.  Skilled   and   intermediate   long   term  care
19        facilities licensed under the Nursing Home Care Act;
20             3.  Skilled  and   intermediate   long   term   care
21        facilities licensed under the Nursing Home Care Act;
22             4.  Hospitals,  nursing  homes,  ambulatory surgical
23        treatment centers, or kidney  disease  treatment  centers
24        maintained  by  the  State  or  any  department or agency
25        thereof;
26             5.  Kidney disease treatment  centers,  including  a
27        free-standing hemodialysis unit; and
28             6.  An  institution,  place,  building, or room used
29        for the performance  of  outpatient  surgical  procedures
30        that  is leased, owned, or operated by or on behalf of an
31        out-of-state facility.
 
                            -2-      LRB093 05228 MKM 05290 b
 1        No federally owned  facility  shall  be  subject  to  the
 2    provisions  of  this  Act,  nor  facilities  used  solely for
 3    healing by prayer or spiritual means.
 4        No facility  licensed  under  the  Supportive  Residences
 5    Licensing  Act  or the Assisted Living and Shared Housing Act
 6    shall be subject to the provisions of this Act.
 7        A facility designated as  a  supportive  living  facility
 8    that  is  in  good  standing  with  the demonstration project
 9    established under Section 5-5.01a of the Illinois Public  Aid
10    Code shall not be subject to the provisions of this Act.
11        This  Act  does  not  apply to facilities granted waivers
12    under Section 3-102.2 of the Nursing Home Care Act.  However,
13    if a demonstration project  under  that  Act  applies  for  a
14    certificate  of  need  to  convert  to a nursing facility, it
15    shall meet the licensure and certificate of need requirements
16    in effect as of the date of application.
17        This Act shall not apply to the closure of an entity or a
18    portion of an entity licensed under the Nursing Home Care Act
19    that elects to convert, in whole or in part, to  an  assisted
20    living  or  shared  housing  establishment licensed under the
21    Assisted Living and Shared Housing Establishment Act.
22        With  the  exception  of  those  health  care  facilities
23    specifically included in this Section, nothing  in  this  Act
24    shall be intended to include facilities operated as a part of
25    the  practice  of  a  physician or other licensed health care
26    professional, whether practicing in his  individual  capacity
27    or  within the legal structure of any partnership, medical or
28    professional  corporation,  or  unincorporated   medical   or
29    professional  group.  Further,  this  Act  shall not apply to
30    physicians  or  other  licensed  health  care  professional's
31    practices where such practices are carried out in  a  portion
32    of  a  health  care  facility under contract with such health
33    care facility by a physician or by other licensed health care
34    professionals, whether practicing in his individual  capacity
 
                            -3-      LRB093 05228 MKM 05290 b
 1    or  within the legal structure of any partnership, medical or
 2    professional  corporation,  or  unincorporated   medical   or
 3    professional groups.  This Act shall apply to construction or
 4    modification   and  to  establishment  by  such  health  care
 5    facility of such  contracted  portion  which  is  subject  to
 6    facility  licensing  requirements,  irrespective of the party
 7    responsible  for   such   action   or   attendant   financial
 8    obligation.
 9        "Person"  means  any  one  or more natural persons, legal
10    entities, governmental bodies  other  than  federal,  or  any
11    combination thereof.
12        "Consumer" means any person other than a person (a) whose
13    major   occupation   currently  involves  or  whose  official
14    capacity  within  the  last  12  months  has   involved   the
15    providing,  administering  or financing of any type of health
16    care facility, (b) who is engaged in health research  or  the
17    teaching of health, (c) who has a material financial interest
18    in  any  activity which involves the providing, administering
19    or financing of any type of health care facility, or (d)  who
20    is  or  ever has been a member of the immediate family of the
21    person defined by (a), (b), or (c).
22        "State Board" means the Health Facilities Planning Board.
23        "Construction or modification" means  the  establishment,
24    erection,      building,      alteration,     reconstruction,
25    modernization,   improvement,   extension,   discontinuation,
26    change of ownership, of or by a health care facility, or  the
27    purchase  or acquisition by or through a health care facility
28    of  equipment  or  service  for  diagnostic  or   therapeutic
29    purposes  or for facility administration or operation, or any
30    capital expenditure made by or on behalf  of  a  health  care
31    facility  which  exceeds  the  capital  expenditure  minimum;
32    however,  any  capital  expenditure made by or on behalf of a
33    health care facility for the construction or modification  of
34    a  facility  licensed  under  the  Assisted Living and Shared
 
                            -4-      LRB093 05228 MKM 05290 b
 1    Housing Act shall be excluded from any obligations under this
 2    Act.
 3        "Establish" means  the  construction  of  a  health  care
 4    facility  or  the  replacement  of  an  existing  facility on
 5    another site.
 6        "Major medical equipment" means medical  equipment  which
 7    is  used  for  the  provision  of  medical  and  other health
 8    services and which costs in excess of the capital expenditure
 9    minimum, except that  such  term  does  not  include  medical
10    equipment  acquired  by or on behalf of a clinical laboratory
11    to provide  clinical  laboratory  services  if  the  clinical
12    laboratory  is  independent  of  a  physician's  office and a
13    hospital and it has been determined under Title XVIII of  the
14    Social  Security  Act  to meet the requirements of paragraphs
15    (10) and (11) of Section 1861(s) of such Act.  In determining
16    whether medical equipment  has  a  value  in  excess  of  the
17    capital  expenditure  minimum, the value of studies, surveys,
18    designs, plans, working drawings, specifications,  and  other
19    activities  essential  to  the  acquisition of such equipment
20    shall be included.
21        "Capital Expenditure" means an expenditure:  (A) made  by
22    or on behalf of a health care facility (as such a facility is
23    defined  in this Act); and (B) which under generally accepted
24    accounting  principles  is  not  properly  chargeable  as  an
25    expense of operation and maintenance, or is made to obtain by
26    lease or comparable arrangement any facility or part  thereof
27    or  any  equipment  for a facility or part; and which exceeds
28    the capital expenditure minimum.
29        For the purpose  of  this  paragraph,  the  cost  of  any
30    studies,   surveys,   designs,   plans,   working   drawings,
31    specifications,   and   other  activities  essential  to  the
32    acquisition, improvement, expansion, or  replacement  of  any
33    plant  or  equipment  with respect to which an expenditure is
34    made shall be included in  determining  if  such  expenditure
 
                            -5-      LRB093 05228 MKM 05290 b
 1    exceeds   the  capital  expenditures  minimum.  Donations  of
 2    equipment or facilities to a health care  facility  which  if
 3    acquired directly by such facility would be subject to review
 4    under  this Act shall be considered capital expenditures, and
 5    a transfer of equipment or  facilities  for  less  than  fair
 6    market  value  shall  be considered a capital expenditure for
 7    purposes of this Act  if  a  transfer  of  the  equipment  or
 8    facilities at fair market value would be subject to review.
 9        "Capital  expenditure  minimum"  means  $6,000,000, which
10    shall  be  annually  adjusted  to  reflect  the  increase  in
11    construction  costs  due  to  inflation,  for  major  medical
12    equipment and for all other capital  expenditures;  provided,
13    however,   that   when  a  capital  expenditure  is  for  the
14    construction or modification of a health and fitness  center,
15    "capital  expenditure  minimum" means the capital expenditure
16    minimum for all other capital expenditures in effect on March
17    1, 2000, which shall be  annually  adjusted  to  reflect  the
18    increase in construction costs due to inflation.
19        "Non-clinical  service  area"  means  an area (i) for the
20    benefit of the patients, visitors, staff, or employees  of  a
21    health  care  facility  and  (ii) not directly related to the
22    diagnosis, treatment, or rehabilitation of persons  receiving
23    services   from  the  health  care  facility.   "Non-clinical
24    service areas" include, but are not limited to, chapels; gift
25    shops; news stands; computer systems; tunnels, walkways,  and
26    elevators;  telephone  systems;  projects to comply with life
27    safety  codes;  educational  facilities;   student   housing;
28    patient,   employee,   staff,   and   visitor  dining  areas;
29    administration  and  volunteer  offices;   modernization   of
30    structural  components  (such as roof replacement and masonry
31    work); boiler repair or replacement; vehicle maintenance  and
32    storage  facilities;  parking  facilities; mechanical systems
33    for  heating,  ventilation,  and  air  conditioning;  loading
34    docks; and repair or replacement  of  carpeting,  tile,  wall
 
                            -6-      LRB093 05228 MKM 05290 b
 1    coverings,  window  coverings  or  treatments,  or furniture.
 2    Solely for the  purpose  of  this  definition,  "non-clinical
 3    service area" does not include health and fitness centers.
 4        "Areawide"  means a major area of the State delineated on
 5    a geographic, demographic, and functional  basis  for  health
 6    planning  and  for health service and having within it one or
 7    more local areas for health planning and health service.  The
 8    term "region", as contrasted with the term  "subregion",  and
 9    the  word  "area"  may  be  used  synonymously  with the term
10    "areawide".
11        "Local" means a subarea of a delineated major  area  that
12    on  a  geographic,  demographic,  and functional basis may be
13    considered  to  be  part  of  such  major  area.   The   term
14    "subregion" may be used synonymously with the term "local".
15        "Areawide health planning organization" or "Comprehensive
16    health planning organization" means the health systems agency
17    designated  by  the Secretary, Department of Health and Human
18    Services or any successor agency.
19        "Local health planning organization"  means  those  local
20    health  planning organizations that are designated as such by
21    the areawide health planning organization of the  appropriate
22    area.
23        "Physician"  means  a  person  licensed  to  practice  in
24    accordance with the Medical Practice Act of 1987, as amended.
25        "Licensed   health  care  professional"  means  a  person
26    licensed to practice  a  health  profession  under  pertinent
27    licensing statutes of the State of Illinois.
28        "Director" means the  Director of the Illinois Department
29    of Public Health.
30        "Agency" means the Illinois Department of Public Health.
31        "Comprehensive  health  planning"  means  health planning
32    concerned with  the  total  population  and  all  health  and
33    associated  problems that affect the well-being of people and
34    that encompasses health services, health manpower, and health
 
                            -7-      LRB093 05228 MKM 05290 b
 1    facilities; and the coordination among these and  with  those
 2    social,  economic,  and  environmental  factors  that  affect
 3    health.
 4        "Alternative  health  care  model"  means  a  facility or
 5    program authorized under the Alternative Health Care Delivery
 6    Act.
 7        "Out-of-state facility" means a person that is  both  (i)
 8    licensed  as  a  hospital  or as an ambulatory surgery center
 9    under the laws of  another  state  or  that  qualifies  as  a
10    hospital  or  an  ambulatory surgery center under regulations
11    adopted pursuant to the Social  Security  Act  and  (ii)  not
12    licensed  under the Ambulatory Surgical Treatment Center Act,
13    the Hospital Licensing Act, or the  Nursing  Home  Care  Act.
14    Affiliates  of  out-of-state  facilities  shall be considered
15    out-of-state facilities.   Affiliates  of  Illinois  licensed
16    health  care  facilities  100%  owned by an Illinois licensed
17    health care facility,  its  parent,  or  Illinois  physicians
18    licensed  to  practice medicine in all its branches shall not
19    be  considered  out-of-state  facilities.   Nothing  in  this
20    definition shall be construed to include  an  office  or  any
21    part  of  an  office  of  a  physician  licensed  to practice
22    medicine in all its branches in Illinois that is not required
23    to be licensed under the Ambulatory Surgical Treatment Center
24    Act.
25        "Change of ownership of a health care facility"  means  a
26    change in the person who has ownership or control of a health
27    care  facility's  physical plant and capital assets. A change
28    in ownership is  indicated  by  the  following  transactions:
29    sale, transfer, acquisition, lease, change of sponsorship, or
30    other means of transferring control.
31        "Related  person"  means any person that: (i) is at least
32    50% owned, directly or indirectly, by either the health  care
33    facility or a person owning, directly or indirectly, at least
34    50%  of  the  health care facility; or (ii) owns, directly or
 
                            -8-      LRB093 05228 MKM 05290 b
 1    indirectly, at least 50% of the health care facility.
 2    (Source: P.A.  90-14,  eff.  7-1-97;  91-656,  eff.   1-1-01;
 3    91-782, eff. 6-9-00; revised 11-6-02.)

 4        (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
 5        (Section scheduled to be repealed on July 1, 2003)
 6        Sec.  4.  Health  Facilities  Planning Board; membership;
 7    appointment; term; compensation; quorum.   There  is  created
 8    the Health Facilities Planning Board, which shall perform the
 9    such functions as hereinafter described in this Act.
10        The  State  Board  shall  consist  of  15 voting members,
11    including: 8 consumer members; one  member  representing  the
12    commercial  health insurance industry in Illinois; one member
13    representing  hospitals  in  Illinois;  one  member  who   is
14    actively  engaged  in  the  field of hospital management; one
15    member who is a professional nurse  registered  in  Illinois;
16    one  member  who  is  a  physician in active private practice
17    licensed in Illinois to  practice  medicine  in  all  of  its
18    branches;  one member who is actively engaged in the field of
19    skilled nursing or intermediate care facility management; and
20    one member who is actively engaged in the  administration  of
21    an  ambulatory  surgical  treatment center licensed under the
22    Ambulatory Surgical Treatment Center Act.
23        The State Board shall be appointed by the Governor,  with
24    the   advice  and  consent  of  the  Senate.  In  making  the
25    appointments,  the  Governor  shall  give  consideration   to
26    recommendations  made  by  (1) the professional organizations
27    concerned  with  hospital   management   for   the   hospital
28    management   appointment,   (2)   professional  organizations
29    concerned with long term care  facility  management  for  the
30    long   term   care   facility   management  appointment,  (3)
31    professional  medical   organizations   for   the   physician
32    appointment,  (4)  professional nursing organizations for the
33    nurse  appointment,  and   (5)   professional   organizations
 
                            -9-      LRB093 05228 MKM 05290 b
 1    concerned  with ambulatory surgical treatment centers for the
 2    ambulatory surgical treatment center appointment,  and  shall
 3    appoint   as   consumer  members  individuals  familiar  with
 4    community health needs but whose interest in  the  operation,
 5    construction  or  utilization  of  health care facilities are
 6    derived  from  factors  other  than  those  related  to   his
 7    profession, business, or economic gain, and who represent, so
 8    far as possible, different geographic areas of the State. Not
 9    more  than  8  of  the  appointments  shall  be  of  the same
10    political party.
11        The Secretary of Human Services, the Director  of  Public
12    Aid,  and  the Director of Public Health, or their designated
13    representatives,  shall  serve  as   ex-officio,   non-voting
14    members of the State Board.
15        Of  those  appointed  by  the Governor as voting members,
16    each member  shall  hold  office  for  a  term  of  3  years:
17    provided,  that  any  member  appointed  to  fill  a  vacancy
18    occurring  prior  to the expiration of the term for which his
19    predecessor  was  appointed  shall  be  appointed   for   the
20    remainder  of  such  term  and  the  term  of  office of each
21    successor shall commence on July 1 of the year in  which  his
22    predecessor's  term  expires. In making original appointments
23    to the State Board, the Governor shall appoint 5 members  for
24    a term of one year, 5 for a term of 2 years, and 3 for a term
25    of  3 years, and each of these terms of office shall commence
26    on July 1, 1974. The initial term of office for  the  members
27    appointed  under  this  amendatory Act of 1996 shall begin on
28    July 1, 1996 and shall last for 2 years, and each  subsequent
29    appointment  shall  be  for  a  term of 3 years.  Each member
30    shall hold  office  until  his  successor  is  appointed  and
31    qualified.
32        Notwithstanding  any  provision  of  this  Section to the
33    contrary, on or after January 1, 2004,  no  person  shall  be
34    appointed  as  a State Board member if that person has served
 
                            -10-     LRB093 05228 MKM 05290 b
 1    more than 2 consecutive 3-year terms as a State Board member,
 2    except for ex-officio, non-voting members.
 3        State Board members, while serving  on  business  of  the
 4    State  Board,  shall  receive actual and necessary travel and
 5    subsistence expenses while so serving away from their  places
 6    of  residence.  In addition, while serving on business of the
 7    State Board, each member shall receive compensation  of  $150
 8    per  day,  except  that  such  compensation  shall not exceed
 9    $7,500 in any one year for any member.
10        The State Board shall provide for  its  own  organization
11    and  procedures,  including  the  selection of a Chairman and
12    such other officers as deemed necessary. The  Director,  with
13    concurrence  of  the  State  Board,  shall  name as full-time
14    Executive Secretary of the State Board, a person qualified in
15    health care facility planning  and  in  administration.   The
16    Agency shall provide administrative and staff support for the
17    State  Board.   The  State Board shall advise the Director of
18    its budgetary and staff needs and consult with  the  Director
19    on annual budget preparation.
20        The State Board shall meet at least once each quarter, or
21    as  often as the Chairman of the State Board deems necessary,
22    or upon the request of a majority of the members.
23        A majority of the voting Eight members of the State Board
24    who currently hold office shall constitute  a  quorum.    The
25    affirmative vote of a majority 8 of the voting members of the
26    State  Board who currently hold office shall be necessary for
27    any action requiring a vote to be taken by the State Board. A
28    vacancy in the membership of the State Board shall not impair
29    the right of a quorum to exercise all the rights and  perform
30    all the duties of the State Board as provided by this Act.
31        A  State Board member shall disqualify himself or herself
32    from the consideration of any application  for  a  permit  or
33    exemption  in which the State Board member or the State Board
34    member's spouse,  parent,  or  child:  (a)  has  an  economic
 
                            -11-     LRB093 05228 MKM 05290 b
 1    interest  in  the  matter; or (b) is employed by, serves as a
 2    consultant for, or is a member of the governing board of  the
 3    applicant or a party opposing the application.
 4    (Source: P.A. 90-14, eff. 7-1-97; 91-782, eff. 6-9-00.)

 5        (20 ILCS 3960/4.2)
 6        (Section scheduled to be repealed on July 1, 2003)
 7        Sec. 4.2.  Ex parte communications.
 8        (a)  Except  in  the disposition of matters that agencies
 9    are authorized by law to entertain or dispose  of  on  an  ex
10    parte  basis  including,  but not limited to rule making, the
11    State Board, any State Board member, employee, or  a  hearing
12    officer  shall not engage in ex parte communication, after an
13    application for a permit is received, in connection with  the
14    substance  of any application for a permit with any person or
15    party or the representative of any party.
16        (b)  A State Board member  or  employee  may  communicate
17    with other members or employees and any State Board member or
18    hearing  officer  may  have the aid and advice of one or more
19    personal assistants.
20        (c)  An ex parte  communication  received  by  the  State
21    Board, any State Board member, employee, or a hearing officer
22    shall  be  made  a  part of the record of the pending matter,
23    including all written communications, all  written  responses
24    to the communications, and a memorandum stating the substance
25    of  all  oral  communications  and all responses made and the
26    identity of each person from whom the ex parte  communication
27    was received.
28        (d)  "Ex   parte  communication"  means  a  communication
29    between a person who is not a State Board member or  employee
30    and  State  Board  member  or  employee  that reflects on the
31    substance of a pending State Board proceeding and that  takes
32    place  outside  the record of the proceeding.  Communications
33    regarding matters of procedure  and  practice,  such  as  the
 
                            -12-     LRB093 05228 MKM 05290 b
 1    format  of  pleading,  number  of  copies required, manner of
 2    service, and status of proceedings,  are  not  considered  ex
 3    parte  communications.   Technical assistance with respect to
 4    an application, not intended to influence any decision on the
 5    application, may be provided by employees to  the  applicant.
 6    Any   assistance  shall  be  documented  in  writing  by  the
 7    applicant  and  employees  within  10 business days after the
 8    assistance is provided.
 9        (e)  For purposes of this  Section,  "employee"  means  a
10    person  the State Board or the Agency employs on a full-time,
11    part-time, contract, or intern basis.
12        (e-5)  For   purposes   of   this   Section,   "technical
13    assistance" means providing explanations concerning this  Act
14    or  rules adopted pursuant to this Act, providing information
15    regarding   standards   and   criteria   used   to   evaluate
16    applications for permit or exemption, consultation on options
17    for  successfully  addressing  the   State   Board's   rules,
18    standards,  and  criteria,  and  other assistance that may be
19    necessary in the preparation,  alteration,  modification,  or
20    revision of an application for permit or exemption. Technical
21    assistance  also  includes  assistance  regarding  matters of
22    procedure.
23        (f)  The State Board,  State  Board  member,  or  hearing
24    examiner  presiding  over  the  proceeding, in the event of a
25    violation of this  Section,  must  take  whatever  action  is
26    necessary to ensure that the violation does not prejudice any
27    party or adversely affect the fairness of the proceedings.
28        (g)  Nothing  in  this  Section  shall  be  construed  to
29    prevent the State Board or any member of the State Board from
30    consulting with the attorney for the State Board.
31    (Source: P.A. 91-782, eff. 6-9-00.)

32        (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
33        (Section scheduled to be repealed on July 1, 2003)
 
                            -13-     LRB093 05228 MKM 05290 b
 1        Sec.  5.  Construction, modification, or establishment of
 2    health  care  facilities  or  acquisition  of  major  medical
 3    equipment; permits or exemptions.  After effective dates  set
 4    by  the  State  Board,   no person shall construct, modify or
 5    establish a health care facility  or  acquire  major  medical
 6    equipment  without first obtaining a permit or exemption from
 7    the State Board. The State Board shall not  delegate  to  the
 8    Executive Secretary of the State Board or any other person or
 9    entity  the authority to grant permits or exemptions whenever
10    the Executive Secretary or other person or  entity  would  be
11    required to exercise any discretion affecting the decision to
12    grant  a  permit  or  exemption.   The  State Board shall set
13    effective dates applicable to all or to  each  classification
14    or  category  of health care facilities and applicable to all
15    or each type of transaction for which a permit  is  required.
16    Varying  effective  dates  may  be set, providing the date or
17    dates so set shall apply uniformly statewide.
18        Notwithstanding any effective dates established  by  this
19    Act  or  by  the  State Board, no person shall be required to
20    obtain a permit for any purpose  under  this  Act  until  the
21    State  health facilities plan referred to in paragraph (4) of
22    Section 12 of this Act has been approved and adopted  by  the
23    State  Board  subsequent  to public hearings having been held
24    thereon.
25        A permit or exemption shall  be  obtained  prior  to  the
26    acquisition of major medical equipment or to the construction
27    or modification of a health care facility which:
28             (a)  requires  a total capital expenditure in excess
29        of the capital expenditure minimum; or
30             (b)  substantially changes the scope or changes  the
31        functional operation of the facility; or
32             (c)  changes  the  bed  capacity  of  a  health care
33        facility by increasing the total number  of  beds  or  by
34        distributing  beds among various categories of service or
 
                            -14-     LRB093 05228 MKM 05290 b
 1        by relocating beds from one physical facility or site  to
 2        another  by  more than 15 10 beds or more than 15% 10% of
 3        total  bed  capacity  as  defined  by  the  State  Board,
 4        whichever is less, over a 2-year  2  year  period.    The
 5        2-year  period  commences  on  the  date  the health care
 6        facility informs the Department that  a  bed  change  has
 7        occurred,  the  date  of correspondence from the Illinois
 8        Health  Facilities  Planning  Board  that  no  permit  or
 9        exemption is needed to initiate a bed change, or the date
10        the bed change becomes effective, whichever occurs first.
11        A permit shall be valid only for the defined construction
12    or modifications,  site,  amount  and  person  named  in  the
13    application  for such permit and shall not be transferable or
14    assignable. A permit shall be valid until such  time  as  the
15    project  has  been completed, provided that (a) obligation of
16    the project occurs within 12 months following issuance of the
17    permit except for major construction projects such obligation
18    must occur within 18 months following issuance of the permit;
19    and (b) the project commences and proceeds to completion with
20    due diligence. Major construction projects, for the  purposes
21    of  this  Act, shall include but are not limited to: projects
22    for the construction of new buildings; additions to  existing
23    facilities; modernization projects whose cost is in excess of
24    $1,000,000  or  10%  of  the  facilities'  operating revenue,
25    whichever is less; and such other projects as the State Board
26    shall define and prescribe pursuant to this  Act.  The  State
27    Board may extend the obligation period upon a showing of good
28    cause  by  the permit holder.  Permits for projects that have
29    not been obligated within the  prescribed  obligation  period
30    shall expire on the last day of that period.
31        Persons  who  otherwise  would  be  required  to obtain a
32    permit shall be exempt from such  requirement  if  the  State
33    Board  finds that with respect to establishing a new facility
34    or  construction   of   new   buildings   or   additions   or
 
                            -15-     LRB093 05228 MKM 05290 b
 1    modifications  to  an  existing  facility,  final  plans  and
 2    specifications  for  such work have prior to October 1, 1974,
 3    been submitted to and approved by the  Department  of  Public
 4    Health  in  accordance  with  the  requirements of applicable
 5    laws.  Such exemptions shall be null and void after  December
 6    31,  1979  unless  binding construction contracts were signed
 7    prior  to  December  1,  1979  and  unless  construction  has
 8    commenced prior to December 31, 1979.  Such exemptions  shall
 9    be  valid  until  such time as the project has been completed
10    provided that the project proceeds  to  completion  with  due
11    diligence.
12        The  acquisition by any person of major medical equipment
13    that will not be  owned  by  or  located  in  a  health  care
14    facility  and  that  will  not be used to provide services to
15    inpatients of a health care facility  shall  be  exempt  from
16    review  provided  that  a  notice is filed in accordance with
17    exemption requirements.
18        Notwithstanding any  other  provision  of  this  Act,  no
19    permit  or  exemption  is  required  for  the construction or
20    modification of a non-clinical service area of a health  care
21    facility.
22        Notwithstanding  any  other  provision  of  this  Act, no
23    permit  or  exemption  is  required  for  the  establishment,
24    construction, or  modification  of  the  following  services,
25    provided  the capital expenditure does not exceed the capital
26    expenditure minimum:  Therapeutic  Radiology,  Intraoperative
27    Magnetic  Resonance  Imaging,  High  Linear  Energy Transfer,
28    Positron Emission Tomographic Scanning, and Burn Treatment.
29        Notwithstanding any other  provisions  of  this  Act,  no
30    permit  or  exemption  is  required  for the establishment of
31    Acute Care Beds  Certified  for  Extended  Care  Category  of
32    Service  (swing  beds)  as  defined  under Title XVIII of the
33    federal Social Security Act.
34    (Source: P.A. 91-782, eff. 6-9-00.)
 
                            -16-     LRB093 05228 MKM 05290 b
 1        (20 ILCS 3960/5.3)
 2        (Section scheduled to be repealed on July 1, 2003)
 3        Sec. 5.3.  Annual report  of  capital  expenditures.   In
 4    addition  to  the State Board's authority to require reports,
 5    the State Board shall require each health  care  facility  to
 6    submit an annual report of all capital expenditures in excess
 7    of  $200,000 (which shall be annually adjusted to reflect the
 8    increase in construction costs due to inflation) made by  the
 9    health  care  facility  during  the  most  recent year.  This
10    annual report shall consist of a  brief  description  of  the
11    capital  expenditure,  the amount and method of financing the
12    capital expenditure, the certificate of need  project  number
13    if  the project was reviewed, and the total amount of capital
14    expenditures obligated for the year.    Data  collected  from
15    health  care  facilities  pursuant  to this Section shall not
16    duplicate or overlap other data collected by  the  Department
17    and  must  be  collected  as  part of the Department's Annual
18    Questionnaires or supplements for health care facilities that
19    report these data.
20    (Source: P.A. 91-782, eff. 6-9-00.)

21        (20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
22        (Section scheduled to be repealed on July 1, 2003)
23        Sec. 6.  Application for permit or  exemption;  exemption
24    regulations.
25        (a)  An  application  for  a permit or exemption shall be
26    made to the State Board upon  forms  provided  by  the  State
27    Board.   This  application  shall contain such information as
28    the State  Board  deems  necessary.  Such  application  shall
29    include  affirmative  evidence on which the Director may make
30    the findings required under this Section and upon  which  the
31    State  Board  may make its decision on the approval or denial
32    of the permit or exemption.
33        (b)  The State Board shall establish  by  regulation  the
 
                            -17-     LRB093 05228 MKM 05290 b
 1    procedures and requirements regarding issuance of exemptions.
 2    An  exemption  shall be approved when information required by
 3    the Board by rule is  submitted.  Projects  eligible  for  an
 4    exemption, rather than a permit, include, but are not limited
 5    to:
 6             (1)  Change  of ownership of a health care facility.
 7        For a change of  ownership  of  a  health  care  facility
 8        between related persons, the State Board shall provide by
 9        rule for an expedited process for obtaining an exemption.
10             (2)  Establishment   of   neonatal   intensive  care
11        service.
12        (c)  All applications shall be signed  by  the  applicant
13    and shall be verified by any 2 officers thereof.
14        (d)  Upon  receipt  of  an  application for a permit, the
15    State Board shall approve and authorize  the  issuance  of  a
16    permit  if  it  finds (1) that the applicant is fit, willing,
17    and able to provide a proper standard of health care  service
18    for   the   community   with   particular   regard   to   the
19    qualification, background and character of the applicant, (2)
20    that  economic feasibility is demonstrated in terms of effect
21    on  the  existing  and  projected  operating  budget  of  the
22    applicant and of the health care facility; in  terms  of  the
23    applicant's ability to establish and operate such facility in
24    accordance   with  licensure  regulations  promulgated  under
25    pertinent state laws; and in terms of the projected impact on
26    the total  health  care  expenditures  in  the  facility  and
27    community, (3) that safeguards are provided which assure that
28    the establishment, construction or modification of the health
29    care  facility  or  acquisition of major medical equipment is
30    consistent  with  the  public  interest,  and  (4)  that  the
31    proposed project is consistent with the orderly and  economic
32    development of such facilities and equipment and is in accord
33    with  standards,  criteria,  or  plans  of  need  adopted and
34    approved pursuant to the provisions of  Section  12  of  this
 
                            -18-     LRB093 05228 MKM 05290 b
 1    Act.
 2    (Source: P.A. 88-18.)

 3        (20 ILCS 3960/10) (from Ch. 111 1/2, par. 1160)
 4        (Section scheduled to be repealed on July 1, 2003)
 5        Sec. 10.  Presenting information relevant to the approval
 6    of  a permit or certificate or in opposition to the denial of
 7    the application; notice of outcome  and  review  proceedings.
 8    When  a  motion by the State Board, to approve an application
 9    for a permit or a certificate of recognition, fails to  pass,
10    or  when  a  motion  to deny an application for a permit or a
11    certificate of recognition is passed, the  applicant  or  the
12    holder  of  the  permit,  as  the case may be, and such other
13    parties  as  the  State  Board  permits,  will  be  given  an
14    opportunity to appear before the State Board and present such
15    information as may be relevant to the approval of a permit or
16    certificate  or  in  opposition  to   the   denial   of   the
17    application.
18        Subsequent  to  an appearance by the applicant before the
19    State Board or default  of  such  opportunity  to  appear,  a
20    motion  by  the  State  Board to approve an application for a
21    permit or a certificate of recognition which fails to pass or
22    a motion to deny an application for a permit or a certificate
23    of recognition  which passes shall be  considered  denial  of
24    the  application  for a permit or certificate of recognition,
25    as the case may be.  Such action of denial or  an  action  by
26    the  State  Board  to  revoke  a  permit  or a certificate of
27    recognition shall be communicated to the applicant or  holder
28    of  the permit or certificate of recognition.  Such person or
29    organization shall be afforded an opportunity for  a  hearing
30    before  a  hearing  officer, who is appointed by the Director
31    State Board.  A written notice of a request for such  hearing
32    shall  be  served upon the Chairman of the State Board within
33    30 days following notification of the decision of  the  State
 
                            -19-     LRB093 05228 MKM 05290 b
 1    Board.   The  State  Board  shall schedule a hearing, and the
 2    Director Chairman shall appoint a hearing officer  within  30
 3    days  thereafter.   The  hearing  officer  shall take actions
 4    necessary to ensure that the hearing is  completed  within  a
 5    reasonable  period of time, but not to exceed 90 days, except
 6    for delays or continuances agreed to by the person requesting
 7    the hearing.  Following its consideration of  the  report  of
 8    the hearing, or upon default of the party to the hearing, the
 9    State  Board  shall  make its final determination, specifying
10    its findings and conclusions within 45 days of receiving  the
11    written  report of the hearing.  A copy of such determination
12    shall be sent by certified mail or served personally upon the
13    party.
14        A  full  and  complete  record  shall  be  kept  of   all
15    proceedings,  including the notice of hearing, complaint, and
16    all other documents  in  the  nature  of  pleadings,  written
17    motions  filed  in the proceedings, and the report and orders
18    of the State Board or hearing officer. All testimony shall be
19    reported but need not be transcribed unless the  decision  is
20    appealed in accordance with the Administrative Review Law, as
21    now or hereafter amended.  A copy or copies of the transcript
22    may  be  obtained  by  any interested party on payment of the
23    cost of preparing such copy or copies.
24        The State Board or hearing officer shall upon its own  or
25    his   motion,  or  on the written request of any party to the
26    proceeding who has, in the State Board's or hearing officer's
27    opinion, demonstrated the relevancy of such  request  to  the
28    outcome  of  the  proceedings,  issue subpoenas requiring the
29    attendance and the giving  of  testimony  by  witnesses,  and
30    subpoenas  duces  tecum  requiring  the  production of books,
31    papers, records, or memoranda.  The  fees  of  witnesses  for
32    attendance  and  travel  shall  be  the  same  as the fees of
33    witnesses before the circuit court of this State.
34        When the witness is subpoenaed at  the  instance  of  the
 
                            -20-     LRB093 05228 MKM 05290 b
 1    State  Board, or its hearing officer, such fees shall be paid
 2    in the same manner as other expenses of the Agency, and  when
 3    the  witness is subpoenaed at the instance of any other party
 4    to any such proceeding the State  Board  may,  in  accordance
 5    with  the  rules  of  the  Agency,  require  that the cost of
 6    service of the subpoena or subpoena duces tecum and  the  fee
 7    of  the  witness  be borne by the party at whose instance the
 8    witness is summoned. In such case, the  State  Board  in  its
 9    discretion,  may  require a deposit to cover the cost of such
10    service and witness fees. A subpoena or subpoena duces  tecum
11    so  issued  shall  be served in the same manner as a subpoena
12    issued out of a court.
13        Any circuit court of this State upon the  application  of
14    the State Board or upon the application of any other party to
15    the proceeding, may, in its discretion, compel the attendance
16    of  witnesses,  the  production of books, papers, records, or
17    memoranda and the  giving  of  testimony  before  it  or  its
18    hearing  officer  conducting  an  investigation  or holding a
19    hearing  authorized  by  this  Act,  by  an  attachment   for
20    contempt,  or  otherwise, in the same manner as production of
21    evidence may be compelled before the court.
22    (Source: P.A. 88-18; 89-276, eff. 8-10-96.)

23        (20 ILCS 3960/12) (from Ch. 111 1/2, par. 1162)
24        (Section scheduled to be repealed on July 1, 2003)
25        Sec. 12.  Powers and duties of State Board.  For purposes
26    of this Act, the State Board  shall  exercise  the  following
27    powers and duties:
28        (1)  Prescribe  rules,  regulations, standards, criteria,
29    procedures or reviews which may vary according to the purpose
30    for which a particular review is being conducted or the  type
31    of  project  reviewed and which are required to carry out the
32    provisions and purposes of this Act.
33        (2)  Adopt procedures for public notice  and  hearing  on
 
                            -21-     LRB093 05228 MKM 05290 b
 1    all  proposed  rules,  regulations,  standards, criteria, and
 2    plans required to carry out the provisions of this Act.
 3        (3)  Prescribe  criteria  for  recognition  for  areawide
 4    health planning organizations, including, but not limited to,
 5    standards for evaluating the scientific bases  for  judgments
 6    on need and procedure for making these determinations.
 7        (4)  Develop  criteria  and  standards  for  health  care
 8    facilities  planning, conduct statewide inventories of health
 9    care  facilities,  maintain  an  updated  inventory  on   the
10    Department's  web  site  reflecting  the  most recent bed and
11    service changes and  updated  need  determinations  when  new
12    census  data  become  available  or  new  need  formulae  are
13    adopted,  and  develop health care facility plans which shall
14    be utilized in the review of applications  for  permit  under
15    this Act.  Such health facility plans shall be coordinated by
16    the  Agency  with  the  health  care  facility plans areawide
17    health planning organizations and with other pertinent  State
18    Plans.
19        In developing health care facility plans, the State Board
20    shall consider, but shall not be limited to, the following:
21             (a)  The   size,   composition  and  growth  of  the
22        population of the area to be served;
23             (b)  The number of existing and  planned  facilities
24        offering similar programs;
25             (c)  The   extent   of   utilization   of   existing
26        facilities;
27             (d)  The  availability of facilities which may serve
28        as alternatives or substitutes;
29             (e)  The availability of personnel necessary to  the
30        operation of the facility;
31             (f)  Multi-institutional     planning     and    the
32        establishment  of   multi-institutional   systems   where
33        feasible;
34             (g)  The   financial  and  economic  feasibility  of
 
                            -22-     LRB093 05228 MKM 05290 b
 1        proposed construction or modification; and
 2             (h)  In  the  case   of   health   care   facilities
 3        established  by  a  religious  body  or denomination, the
 4        needs  of  the  members  of  such   religious   body   or
 5        denomination may be considered to be public need.
 6        The  health  care  facility plans which are developed and
 7    adopted in accordance with this Section shall form the  basis
 8    for  the  plan  of  the  State  to deal most effectively with
 9    statewide health needs in regard to health care facilities.
10        (5)  Coordinate  with   other   state   agencies   having
11    responsibilities  affecting health care facilities, including
12    those of licensure and cost reporting.
13        (6)  Solicit, accept, hold and administer  on  behalf  of
14    the  State  any  grants  or  bequests of money, securities or
15    property for use by the State Board  or  recognized  areawide
16    health  planning  organizations in the administration of this
17    Act;  and  enter   into   contracts   consistent   with   the
18    appropriations for purposes enumerated in this Act.
19        (7)  The  State  Board  shall  prescribe, in consultation
20    with the recognized areawide health  planning  organizations,
21    procedures for review, standards, and criteria which shall be
22    utilized to make periodic areawide reviews and determinations
23    of  the appropriateness of any existing health services being
24    rendered by health care facilities subject to the  Act.   The
25    State  Board  shall  consider recommendations of the areawide
26    health planning organization and the  Agency  in  making  its
27    determinations.
28        (8)  Prescribe,   in  consultation  with  the  recognized
29    areawide health planning organizations,  rules,  regulations,
30    standards,  and  criteria  for  the conduct of an expeditious
31    review  of  applications  for   permits   for   projects   of
32    construction or modification of a health care facility, which
33    projects are non-substantive in nature.  Such rules shall not
34    abridge  the  right of areawide health planning organizations
 
                            -23-     LRB093 05228 MKM 05290 b
 1    to make recommendations on the classification and approval of
 2    projects, nor shall such  rules  prevent  the  conduct  of  a
 3    public  hearing  upon  the  timely  request  of an interested
 4    party.  Such reviews shall not exceed 60 days from  the  date
 5    the application is declared to be complete by the Agency.
 6        (9)  Prescribe   rules,   regulations,   standards,   and
 7    criteria   pertaining   to   the   granting  of  permits  for
 8    construction and modifications which are emergent  in  nature
 9    and  must  be  undertaken  immediately  to prevent or correct
10    structural deficiencies or hazardous conditions that may harm
11    or injure persons using the facility, as defined in the rules
12    and regulations of the State Board. This procedure is  exempt
13    from public hearing requirements of this Act.
14        (10)  Prescribe   rules,   regulations,   standards   and
15    criteria  for  the  conduct  of  an  expeditious  review, not
16    exceeding 60 days, of applications for permits  for  projects
17    to  construct  or  modify  health  care  facilities which are
18    needed for  the  care  and  treatment  of  persons  who  have
19    acquired   immunodeficiency   syndrome   (AIDS)   or  related
20    conditions.
21    (Source: P.A. 88-18; 89-276, eff. 8-10-95.)

22        (20 ILCS 3960/12.2)
23        (Section scheduled to be repealed on July 1, 2003)
24        Sec. 12.2.  Powers of the Agency.  For purposes  of  this
25    Act,  the  Agency  shall  exercise  the  following powers and
26    duties:
27        (1)  Review applications for permits  and  exemptions  in
28    accordance  with  the  standards, criteria, and plans of need
29    established by the State Board under this Act and certify its
30    finding to the State Board.
31        (1.3)  Post relevant  regulations,  standards,  criteria,
32    and state norms on the Department's web site, provide updated
33    information as it becomes available, and post references used
 
                            -24-     LRB093 05228 MKM 05290 b
 1    by  Agency  staff  in  making  determinations  about  whether
 2    application criteria are met.
 3        (1.7)  In  cases where an application for permit receives
 4    positive  findings  on  all  of  the  State  Board's   review
 5    criteria,  and  the  application  is  not  objected to by any
 6    member of the public, issue a permit to the applicant.
 7        (2)  Charge and collect an amount determined by the State
 8    Board  to  be  reasonable  fees   for   the   processing   of
 9    applications   by  the  State  Board,  the  Agency,  and  the
10    appropriate recognized areawide health planning organization.
11    The State Board shall set the amounts by rule.  All fees  and
12    fines  collected  under  the  provisions of this Act shall be
13    deposited into the Illinois Health Facilities  Planning  Fund
14    to be used for the expenses of administering this Act.
15        (3)  Coordinate   with   other   State   agencies  having
16    responsibilities affecting health care facilities,  including
17    those of licensure and cost reporting.
18    (Source: P.A. 89-276, eff. 8-10-95; 90-14, eff. 7-1-97.)

19        (20 ILCS 3960/12.3 new)
20        (Section scheduled to be repealed on July 1, 2003)
21        Sec. 12.3.  Revision of Criteria, Standards, and Rules.
22        (a)  Before  December  31,  2004,  the  State Board shall
23    review, revise, and promulgate the criteria,  standards,  and
24    rules used to evaluate applications for permit. To the extent
25    practicable,  the  criteria,  standards,  and  rules shall be
26    based on objective criteria. In particular, the review of the
27    criteria, standards, and rules shall consider:
28             (1)  Whether  the  criteria  and  standards  reflect
29        current industry standards and anticipated trends.
30             (2)  Whether  the  criteria  and  standards  can  be
31        reduced or eliminated.
32             (3)  Whether criteria and standards can be developed
33        to authorize the construction  of  unfinished  space  for
 
                            -25-     LRB093 05228 MKM 05290 b
 1        future  use  when the ultimate need for such space can be
 2        reasonably projected.
 3             (4)  Whether the criteria and  standards  take  into
 4        account  issues related to population growth and changing
 5        demographics in a community.
 6             (5)  Whether facility-defined service  and  planning
 7        areas should be recognized.
 8        (b)  The  State  Board  shall  recommend and the Director
 9    shall appoint an ad hoc advisory committee to  advise  it  in
10    the  revision and development of the criteria, standards, and
11    rules under this Section. The ad hoc advisory committee shall
12    include, but not be limited to representatives of  hospitals,
13    including  the  Illinois Hospital Association, long term care
14    facilities, ambulatory  surgical  treatment  centers,  health
15    care  employees,  business,  health insurers, and physicians.
16    The Director, or his or her designee, shall chair the ad  hoc
17    advisory committee.

18        (20 ILCS 3960/13) (from Ch. 111 1/2, par. 1163)
19        (Section scheduled to be repealed on July 1, 2003)
20        Sec.  13.  Investigation  of applications for permits and
21    certificates of recognition. The Agency or  the  State  Board
22    shall  make  or cause to be made such investigations as it or
23    the  State  Board  deems  necessary  in  connection  with  an
24    application for a permit or an application for a  certificate
25    of  recognition,  or  in  connection  with a determination of
26    whether or not construction or modification  which  has  been
27    commenced  is  in  accord with the permit issued by the State
28    Board  or  whether  construction  or  modification  has  been
29    commenced without a permit having been obtained.   The  State
30    Board   may   issue   subpoenas  duces  tecum  requiring  the
31    production of  records  and  may  administer  oaths  to  such
32    witnesses.
33        Any  circuit court of this State, upon the application of
 
                            -26-     LRB093 05228 MKM 05290 b
 1    the State Board or upon the application of any party to  such
 2    proceedings, may, in its discretion, compel the attendance of
 3    witnesses,  the  production  of  books,  papers,  records, or
 4    memoranda and the giving of testimony before the State Board,
 5    by a proceeding as for contempt, or otherwise,  in  the  same
 6    manner  as production of evidence may be compelled before the
 7    court.
 8        The State  Board  shall  require  all  health  facilities
 9    operating in this State to provide such reasonable reports at
10    such times and containing such information as is needed by it
11    to  carry out the purposes and provisions of this Act.  Prior
12    to collecting information from health facilities,  the  State
13    Board  shall make reasonable efforts through a public process
14    to consult  with  health  facilities  and  associations  that
15    represent  them  to  determine  whether  data and information
16    requests  will  result  in  useful  information  for   health
17    planning,  whether  sufficient  information is available from
18    other  sources,  and  whether  data  requested  is  routinely
19    collected by  health  facilities  and  is  available  without
20    retrospective  record  review.  Data and information requests
21    shall not impose  undue  paperwork  burdens  on  health  care
22    facilities  and  personnel.   Health facilities not complying
23    with  this  requirement  shall  be  reported  to   licensing,
24    accrediting,  certifying,  or  payment  agencies  as being in
25    violation of State law.  Health  care  facilities  and  other
26    parties at interest shall have reasonable access, under rules
27    established  by  the State Board, to all planning information
28    submitted in accord with this Act pertaining to their area.
29    (Source: P.A. 89-276, eff. 8-10-95.)

30        (20 ILCS 3960/19.6)
31        (Section scheduled to be repealed on July 1, 2003).
32        Sec. 19.6.  Repeal.  This Act is repealed on July 1, 2008
33    2003.
 
                            -27-     LRB093 05228 MKM 05290 b
 1    (Source: P.A. 91-782, eff. 6-9-00.)

 2        Section 99.  Effective date.  This Act takes effect  upon
 3    becoming law.
 
                            -28-     LRB093 05228 MKM 05290 b
 1                                INDEX
 2               Statutes amended in order of appearance
 3    20 ILCS 3960/3            from Ch. 111 1/2, par. 1153
 4    20 ILCS 3960/4            from Ch. 111 1/2, par. 1154
 5    20 ILCS 3960/4.2
 6    20 ILCS 3960/5            from Ch. 111 1/2, par. 1155
 7    20 ILCS 3960/5.3
 8    20 ILCS 3960/6            from Ch. 111 1/2, par. 1156
 9    20 ILCS 3960/10           from Ch. 111 1/2, par. 1160
10    20 ILCS 3960/12           from Ch. 111 1/2, par. 1162
11    20 ILCS 3960/12.2
12    20 ILCS 3960/12.3 new
13    20 ILCS 3960/13           from Ch. 111 1/2, par. 1163
14    20 ILCS 3960/19.6