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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8 (Section scheduled to be repealed on July 1, 2003)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.
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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
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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
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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
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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
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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
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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
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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
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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
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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 votingEight members of the State Board
24 who currently hold office shall constitute a quorum. The
25 affirmative vote of a majority8 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
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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
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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)
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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
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1 by relocating beds from one physical facility or site to
2 another by more than 1510 beds or more than 15%10% of
3 total bed capacity as defined by the State Board,
4 whichever is less, over a 2-year2 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
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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.)
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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
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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
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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
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1 Board. The State Board shall schedule a hearing, and the
2 DirectorChairman 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
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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
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