With the exception of those health care facilities specifically
included in this Section, nothing in this Act shall be intended to
include facilities operated as a part of the practice of a physician or
other licensed health care professional, whether practicing in his
individual capacity or within the legal structure of any partnership,
medical or professional corporation, or unincorporated medical or
professional group. Further, this Act shall not apply to physicians or
other licensed health care professional's practices where such practices
are carried out in a portion of a health care facility under contract
with such health care facility by a physician or by other licensed
health care professionals, whether practicing in his individual capacity
or within the legal structure of any partnership, medical or
professional corporation, or unincorporated medical or professional
groups, unless the entity constructs, modifies, or establishes a health care facility as specifically defined in this Section. This Act shall apply to construction or
modification and to establishment by such health care facility of such
contracted portion which is subject to facility licensing requirements,
irrespective of the party responsible for such action or attendant
"Person" means any one or more natural persons, legal entities,
governmental bodies other than federal, or any combination thereof.
"Consumer" means any person other than a person (a) whose major
occupation currently involves or whose official capacity within the last
12 months has involved the providing, administering or financing of any
type of health care facility, (b) who is engaged in health research or
the teaching of health, (c) who has a material financial interest in any
activity which involves the providing, administering or financing of any
type of health care facility, or (d) who is or ever has been a member of
the immediate family of the person defined by item (a), (b), or (c).
"State Board" or "Board" means the Health Facilities and Services Review Board.
"Construction or modification" means the establishment, erection,
building, alteration, reconstruction, modernization, improvement,
extension, discontinuation, change of ownership, of or by a health care
facility, or the purchase or acquisition by or through a health care facility
equipment or service for diagnostic or therapeutic purposes or for
facility administration or operation, or any capital expenditure made by
or on behalf of a health care facility which
exceeds the capital expenditure minimum; however, any capital expenditure
made by or on behalf of a health care facility for (i) the construction or
modification of a facility licensed under the Assisted Living and Shared
Housing Act or (ii) a conversion project undertaken in accordance with Section 30 of the Older Adult Services Act shall be excluded from any obligations under this Act.
"Establish" means the construction of a health care facility or the
replacement of an existing facility on another site or the initiation of a category of service.
"Major medical equipment" means medical equipment which is used for the
provision of medical and other health services and which costs in excess
of the capital expenditure minimum, except that such term does not include
medical equipment acquired
by or on behalf of a clinical laboratory to provide clinical laboratory
services if the clinical laboratory is independent of a physician's office
and a hospital and it has been determined under Title XVIII of the Social
Security Act to meet the requirements of paragraphs (10) and (11) of Section
1861(s) of such Act. In determining whether medical equipment has a value
in excess of the capital expenditure minimum, the value of studies, surveys,
designs, plans, working drawings, specifications, and other activities
essential to the acquisition of such equipment shall be included.
"Capital expenditure" means an expenditure: (A) made by or on behalf of
a health care facility (as such a facility is defined in this Act); and
(B) which under generally accepted accounting principles is not properly
chargeable as an expense of operation and maintenance, or is made to obtain
by lease or comparable arrangement any facility or part thereof or any
equipment for a facility or part; and which exceeds the capital expenditure
For the purpose of this paragraph, the cost of any studies, surveys, designs,
plans, working drawings, specifications, and other activities essential
to the acquisition, improvement, expansion, or replacement of any plant
or equipment with respect to which an expenditure is made shall be included
in determining if such expenditure exceeds the capital expenditures minimum.
Unless otherwise interdependent, or submitted as one project by the applicant, components of construction or modification undertaken by means of a single construction contract or financed through the issuance of a single debt instrument shall not be grouped together as one project. Donations of equipment
or facilities to a health care facility which if acquired directly by such
facility would be subject to review under this Act shall be considered capital
expenditures, and a transfer of equipment or facilities for less than fair
market value shall be considered a capital expenditure for purposes of this
Act if a transfer of the equipment or facilities at fair market value would
be subject to review.
"Capital expenditure minimum" means $11,500,000 for projects by hospital applicants, $6,500,000 for applicants for projects related to skilled and intermediate care long-term care facilities licensed under the Nursing Home Care Act, and $3,000,000 for projects by all other applicants, which shall be annually
adjusted to reflect the increase in construction costs due to inflation, for major medical equipment and for all other
"Financial commitment" means the commitment of at least 33% of total funds assigned to cover total project cost, which occurs by the actual expenditure of 33% or more of the total project cost or the commitment to expend 33% or more of the total project cost by signed contracts or other legal means.
"Non-clinical service area" means an area (i) for the benefit of the
patients, visitors, staff, or employees of a health care facility and (ii) not
directly related to the diagnosis, treatment, or rehabilitation of persons
receiving services from the health care facility. "Non-clinical service areas"
include, but are not limited to, chapels; gift shops; news stands; computer
systems; tunnels, walkways, and elevators; telephone systems; projects to
comply with life safety codes; educational facilities; student housing;
patient, employee, staff, and visitor dining areas; administration and
volunteer offices; modernization of structural components (such as roof
replacement and masonry work); boiler repair or replacement; vehicle
maintenance and storage facilities; parking facilities; mechanical systems for
heating, ventilation, and air conditioning; loading docks; and repair or
replacement of carpeting, tile, wall coverings, window coverings or treatments,
or furniture. Solely for the purpose of this definition, "non-clinical service
area" does not include health and fitness centers.
"Areawide" means a major area of the State delineated on a
geographic, demographic, and functional basis for health planning and
for health service and having within it one or more local areas for
health planning and health service. The term "region", as contrasted
with the term "subregion", and the word "area" may be used synonymously
with the term "areawide".
"Local" means a subarea of a delineated major area that on a
geographic, demographic, and functional basis may be considered to be
part of such major area. The term "subregion" may be used synonymously
with the term "local".
"Physician" means a person licensed to practice in accordance with
the Medical Practice Act of 1987, as amended.
"Licensed health care professional" means a person licensed to
practice a health profession under pertinent licensing statutes of the
State of Illinois.
"Director" means the Director of the Illinois Department of Public Health.
"Agency" or "Department" means the Illinois Department of Public Health.
"Alternative health care model" means a facility or program authorized
under the Alternative Health Care Delivery Act.
"Out-of-state facility" means a person that is both (i) licensed as a
hospital or as an ambulatory surgery center under the laws of another state
qualifies as a hospital or an ambulatory surgery center under regulations
adopted pursuant to the Social Security Act and (ii) not licensed under the
Ambulatory Surgical Treatment Center Act, the Hospital Licensing Act, or the
Nursing Home Care Act. Affiliates of out-of-state facilities shall be
considered out-of-state facilities. Affiliates of Illinois licensed health
care facilities 100% owned by an Illinois licensed health care facility, its
parent, or Illinois physicians licensed to practice medicine in all its
branches shall not be considered out-of-state facilities. Nothing in
this definition shall be
construed to include an office or any part of an office of a physician licensed
to practice medicine in all its branches in Illinois that is not required to be
licensed under the Ambulatory Surgical Treatment Center Act.
"Change of ownership of a health care facility" means a change in the
who has ownership or
control of a health care facility's physical plant and capital assets. A change
in ownership is indicated by
the following transactions: sale, transfer, acquisition, lease, change of
sponsorship, or other means of
"Related person" means any person that: (i) is at least 50% owned, directly
or indirectly, by
either the health care facility or a person owning, directly or indirectly, at
least 50% of the health
care facility; or (ii) owns, directly or indirectly, at least 50% of the
health care facility.
"Charity care" means care provided by a health care facility for which the provider does not expect to receive payment from the patient or a third-party payer.
"Freestanding emergency center" means a facility subject to licensure under Section 32.5 of the Emergency Medical Services (EMS) Systems Act.
"Category of service" means a grouping by generic class of various types or levels of support functions, equipment, care, or treatment provided to patients or residents, including, but not limited to, classes such as medical-surgical, pediatrics, or cardiac catheterization. A category of service may include subcategories or levels of care that identify a particular degree or type of care within the category of service. Nothing in this definition shall be construed to include the practice of a physician or other licensed health care professional while functioning in an office providing for the care, diagnosis, or treatment of patients. A category of service that is subject to the Board's jurisdiction must be designated in rules adopted by the Board.
"State Board Staff Report" means the document that sets forth the review and findings of the State Board staff, as prescribed by the State Board, regarding applications subject to Board jurisdiction.
(Source: P.A. 100-518, eff. 6-1-18; 100-581, eff. 3-12-18; 100-957, eff. 8-19-18; 101-81, eff. 7-12-19; 101-650, eff. 7-7-20.)