State of Illinois
91st General Assembly
Legislation

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91_HB0182enr

HB0182 Enrolled                                LRB9100213WHmg

 1        AN ACT to  amend  certain  Acts  in  relation  to  mental
 2    health.

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

 5        Section 5.  The Illinois Act on the Aging is  amended  by
 6    changing Section 4.04 as follows:

 7        (20 ILCS 105/4.04) (from Ch. 23, par. 6104.04)
 8        (Text of Section before amendment by P.A. 91-656)
 9        Sec. 4.04.  Long Term Care Ombudsman Program.
10        (a)  Long  Term  Care  Ombudsman  Program. The Department
11    shall establish a Long Term Care Ombudsman  Program,  through
12    the  Office of State Long Term Care Ombudsman ("the Office"),
13    in accordance with the provisions of the Older Americans  Act
14    of 1965, as now or hereafter amended.
15        (b)  Definitions.  As  used  in  this Section, unless the
16    context requires otherwise:
17             (1)  "Access" has the same  meaning  as  in  Section
18        1-104  of  the Nursing Home Care Act, as now or hereafter
19        amended; that is, it means the right to:
20                  (i)  Enter any long term care facility;
21                  (ii)  Communicate   privately    and    without
22             restriction  with  any  resident who consents to the
23             communication;
24                  (iii)  Seek consent  to  communicate  privately
25             and without restriction with any resident;
26                  (iv)  Inspect the clinical and other records of
27             a  resident  with the express written consent of the
28             resident;
29                  (v)  Observe all areas of the  long  term  care
30             facility  except the living area of any resident who
31             protests the observation.
 
HB0182 Enrolled             -2-                LRB9100213WHmg
 1             (2)  "Long  Term  Care  Facility"  means   (i)   any
 2        facility  as defined by Section 1-113 of the Nursing Home
 3        Care Act, as now  or  hereafter  amended;  and  (ii)  any
 4        skilled  nursing  facility  or  a  nursing facility which
 5        meets the requirements of Section 1819(a), (b), (c),  and
 6        (d)  or  Section 1919(a), (b), (c), and (d) of the Social
 7        Security Act, as now  or  hereafter  amended  (42  U.S.C.
 8        1395i-3(a),  (b),  (c),  and  (d) and 42 U.S.C. 1396r(a),
 9        (b), (c), and (d)).
10             (3)  "Ombudsman" means any person  employed  by  the
11        Department  to fulfill the requirements of the Office, or
12        any  representative  of  a  sub-State  long   term   care
13        ombudsman  program;  provided  that  the  representative,
14        whether  he  is  paid  for  or  volunteers  his ombudsman
15        services,  shall  be  qualified  and  authorized  by  the
16        Department to perform  the  duties  of  an  ombudsman  as
17        specified by the Department in rules.
18        (c)  Ombudsman; rules. The Office of State Long Term Care
19    Ombudsman  shall  be  composed  of  at  least  one  full-time
20    ombudsman within the Department and shall include a system of
21    designated  sub-State long term care ombudsman programs. Each
22    sub-State program shall be designated by the Department as  a
23    subdivision  of  the  Office  and  any  representative  of  a
24    sub-State program shall be treated as a representative of the
25    Office.
26        The  Department  shall promulgate administrative rules to
27    establish the responsibilities  of  the  Department  and  the
28    Office  of State Long Term Care Ombudsman. The administrative
29    rules shall include  the  responsibility  of  the  Office  to
30    investigate  and  resolve  complaints made by or on behalf of
31    residents of long term care facilities relating  to  actions,
32    inaction,    or    decisions    of    providers,   or   their
33    representatives, of long  term  care  facilities,  of  public
34    agencies, or of social services agencies, which may adversely
 
HB0182 Enrolled             -3-                LRB9100213WHmg
 1    affect  the  health,  safety,  welfare,  or  rights  of  such
 2    residents. When necessary and appropriate, representatives of
 3    the   Office   shall  refer  complaints  to  the  appropriate
 4    regulatory State agency.
 5        (d)  Access and visitation rights.
 6             (1) In accordance with subparagraphs (A) and (E)  of
 7        paragraph  (3)  of  subsection  (c)  of  Section 1819 and
 8        subparagraphs (A) and (E) of paragraph (3) of  subsection
 9        (c) of Section 1919 of the Social Security Act, as now or
10        hereafter  amended  (42  U.S.C. 1395i-3 (c)(3)(A) and (E)
11        and 42 U.S.C. 1396r (c)(3)(A) and (E)), and  Section  712
12        of  the  Older Americans Act of 1965, as now or hereafter
13        amended (42 U.S.C. 3058f),  a  long  term  care  facility
14        must:
15                  (i)  permit immediate access to any resident by
16             an ombudsman; and
17                  (ii)  permit  representatives  of  the  Office,
18             with   the   permission   of  the  resident's  legal
19             representative  or  legal  guardian,  to  examine  a
20             resident's clinical and  other  records,  and  if  a
21             resident  is  unable  to consent to such review, and
22             has no legal guardian, permit representatives of the
23             Office  appropriate  access,  as  defined   by   the
24             Department   in   administrative   rules,   to   the
25             resident's records.
26             (2)  Each  long term care facility shall display, in
27        multiple, conspicuous public places within  the  facility
28        accessible to both visitors and patients and in an easily
29        readable  format,  the  address  and  phone number of the
30        Office, in a manner prescribed by the Office.
31        (e)  Immunity. An ombudsman or any  other  representative
32    of  the Office participating in the good faith performance of
33    his or her official  duties  shall  have  immunity  from  any
34    liability  (civil,  criminal or otherwise) in any proceedings
 
HB0182 Enrolled             -4-                LRB9100213WHmg
 1    (civil, criminal or otherwise) brought as  a  consequence  of
 2    the performance of his official duties.
 3        (f)  Business offenses.
 4             (1) No person shall:
 5                  (i)  Intentionally  prevent, interfere with, or
 6             attempt to impede in any way any  representative  of
 7             the Office in the performance of his official duties
 8             under  this Act and the Older Americans Act of 1965;
 9             or
10                  (ii)  Intentionally   retaliate,   discriminate
11             against, or effect reprisals against any  long  term
12             care facility resident or employee for contacting or
13             providing  information  to any representative of the
14             Office.
15             (2)  A violation  of  this  Section  is  a  business
16        offense, punishable by a fine not to exceed $501.
17             (3)  The  Director of Aging shall notify the State's
18        Attorney of the  county  in  which  the  long  term  care
19        facility  is  located,  or  the  Attorney General, of any
20        violations of this Section.
21        (g)  Confidentiality of records and identities. No  files
22    or  records  maintained by the Office of State Long Term Care
23    Ombudsman shall be disclosed unless the  State  Ombudsman  or
24    the  ombudsman  having  the authority over the disposition of
25    such  files  authorizes  the  disclosure  in   writing.   The
26    ombudsman shall not disclose the identity of any complainant,
27    resident,  witness  or  employee of a long term care provider
28    involved in a  complaint or report unless such person or such
29    person's guardian or legal representative consents in writing
30    to the disclosure, or the disclosure  is  required  by  court
31    order.
32        (h)  Legal  representation.  The  Attorney  General shall
33    provide legal representation to  any  representative  of  the
34    Office  against whom suit or other legal action is brought in
 
HB0182 Enrolled             -5-                LRB9100213WHmg
 1    connection  with  the  performance  of  the  representative's
 2    official duties, in accordance with "An Act  to  provide  for
 3    representation  and  indemnification  in  certain  civil  law
 4    suits",  approved  December  3,  1977,  as  now  or hereafter
 5    amended.
 6        (i)  Treatment by prayer and spiritual means. Nothing  in
 7    this  Act  shall  be  construed  to  authorize or require the
 8    medical supervision, regulation or control of  remedial  care
 9    or  treatment  of  any  resident in a long term care facility
10    operated exclusively by and for members or adherents  of  any
11    church  or religious denomination the tenets and practices of
12    which include reliance solely upon  spiritual  means  through
13    prayer for healing.
14    (Source: P.A. 90-639, eff. 1-1-99; 91-174, eff. 7-16-99.)

15        (Text of Section after amendment by P.A. 91-656)
16        Sec. 4.04.  Long Term Care Ombudsman Program.
17        (a)  Long  Term  Care  Ombudsman  Program. The Department
18    shall establish a Long Term Care Ombudsman  Program,  through
19    the  Office of State Long Term Care Ombudsman ("the Office"),
20    in accordance with the provisions of the Older Americans  Act
21    of 1965, as now or hereafter amended.
22        (b)  Definitions.  As  used  in  this Section, unless the
23    context requires otherwise:
24             (1)  "Access" has the same  meaning  as  in  Section
25        1-104  of  the Nursing Home Care Act, as now or hereafter
26        amended; that is, it means the right to:
27                  (i)  Enter  any  long  term  care  facility  or
28             assisted living or shared housing establishment;
29                  (ii)  Communicate   privately    and    without
30             restriction  with  any  resident who consents to the
31             communication;
32                  (iii)  Seek consent  to  communicate  privately
33             and without restriction with any resident;
34                  (iv)  Inspect the clinical and other records of
 
HB0182 Enrolled             -6-                LRB9100213WHmg
 1             a  resident  with the express written consent of the
 2             resident;
 3                  (v)  Observe all areas of the  long  term  care
 4             facility   or  assisted  living  or  shared  housing
 5             establishment except the living area of any resident
 6             who protests the observation.
 7             (2)  "Long  Term  Care  Facility"  means   (i)   any
 8        facility  as defined by Section 1-113 of the Nursing Home
 9        Care Act, as now  or  hereafter  amended;  and  (ii)  any
10        skilled  nursing  facility  or  a  nursing facility which
11        meets the requirements of Section 1819(a), (b), (c),  and
12        (d)  or  Section 1919(a), (b), (c), and (d) of the Social
13        Security Act, as now  or  hereafter  amended  (42  U.S.C.
14        1395i-3(a),  (b),  (c),  and  (d) and 42 U.S.C. 1396r(a),
15        (b), (c), and (d)).
16             (2.5)  "Assisted living establishment"  and  "shared
17        housing  establishment"  have  the  meanings  given those
18        terms in Section 10 of the  Assisted  Living  and  Shared
19        Housing Act.
20             (3)  "Ombudsman"  means  any  person employed by the
21        Department to fulfill the requirements of the Office,  or
22        any   representative   of  a  sub-State  long  term  care
23        ombudsman  program;  provided  that  the  representative,
24        whether he  is  paid  for  or  volunteers  his  ombudsman
25        services,  shall  be  qualified  and  authorized  by  the
26        Department  to  perform  the  duties  of  an ombudsman as
27        specified by the Department in rules.
28        (c)  Ombudsman; rules. The Office of State Long Term Care
29    Ombudsman  shall  be  composed  of  at  least  one  full-time
30    ombudsman within the Department and shall include a system of
31    designated sub-State long term care ombudsman programs.  Each
32    sub-State  program shall be designated by the Department as a
33    subdivision  of  the  Office  and  any  representative  of  a
34    sub-State program shall be treated as a representative of the
 
HB0182 Enrolled             -7-                LRB9100213WHmg
 1    Office.
 2        The Department shall promulgate administrative  rules  to
 3    establish  the  responsibilities  of  the  Department and the
 4    Office of State Long Term Care Ombudsman. The  administrative
 5    rules  shall  include  the  responsibility  of  the Office to
 6    investigate and resolve complaints made by or  on  behalf  of
 7    residents  of  long  term care facilities and assisted living
 8    and  shared  housing  establishments  relating  to   actions,
 9    inaction,    or    decisions    of    providers,   or   their
10    representatives, of long term care  facilities,  of  assisted
11    living and shared housing establishments, of public agencies,
12    or  of  social  services agencies, which may adversely affect
13    the health, safety, welfare, or  rights  of  such  residents.
14    When necessary and appropriate, representatives of the Office
15    shall  refer  complaints  to the appropriate regulatory State
16    agency. The Department shall cooperate with the Department of
17    Human Services  in  providing  information  and  training  to
18    designated  sub-State long term care ombudsman programs about
19    the   appropriate   assessment   and   treatment   (including
20    information about appropriate supportive services,  treatment
21    options,  and  assessment  of  rehabilitation  potential)  of
22    persons  with  mental illness (other than Alzheimer's disease
23    and related disorders).
24        (d)  Access and visitation rights.
25             (1) In accordance with subparagraphs (A) and (E)  of
26        paragraph  (3)  of  subsection  (c)  of  Section 1819 and
27        subparagraphs (A) and (E) of paragraph (3) of  subsection
28        (c) of Section 1919 of the Social Security Act, as now or
29        hereafter  amended  (42  U.S.C. 1395i-3 (c)(3)(A) and (E)
30        and 42 U.S.C. 1396r (c)(3)(A) and (E)), and  Section  712
31        of  the  Older Americans Act of 1965, as now or hereafter
32        amended (42 U.S.C. 3058f), a  long  term  care  facility,
33        assisted   living   establishment,   and  shared  housing
34        establishment must:
 
HB0182 Enrolled             -8-                LRB9100213WHmg
 1                  (i)  permit immediate access to any resident by
 2             an ombudsman; and
 3                  (ii)  permit  representatives  of  the  Office,
 4             with  the  permission  of   the   resident's   legal
 5             representative  or  legal  guardian,  to  examine  a
 6             resident's  clinical  and  other  records,  and if a
 7             resident is unable to consent to  such  review,  and
 8             has no legal guardian, permit representatives of the
 9             Office   appropriate   access,  as  defined  by  the
10             Department   in   administrative   rules,   to   the
11             resident's records.
12             (2)  Each long term care facility,  assisted  living
13        establishment,  and  shared  housing  establishment shall
14        display, in multiple, conspicuous  public  places  within
15        the facility accessible to both visitors and patients and
16        in  an  easily  readable  format,  the  address and phone
17        number of the Office,  in  a  manner  prescribed  by  the
18        Office.
19        (e)  Immunity.  An  ombudsman or any other representative
20    of the Office participating in the good faith performance  of
21    his  or  her  official  duties  shall  have immunity from any
22    liability (civil, criminal or otherwise) in  any  proceedings
23    (civil,  criminal  or  otherwise) brought as a consequence of
24    the performance of his official duties.
25        (f)  Business offenses.
26             (1) No person shall:
27                  (i)  Intentionally prevent, interfere with,  or
28             attempt  to  impede in any way any representative of
29             the Office in the performance of his official duties
30             under this Act and the Older Americans Act of  1965;
31             or
32                  (ii)  Intentionally   retaliate,   discriminate
33             against,  or  effect reprisals against any long term
34             care facility resident or employee for contacting or
 
HB0182 Enrolled             -9-                LRB9100213WHmg
 1             providing information to any representative  of  the
 2             Office.
 3             (2)  A  violation  of  this  Section  is  a business
 4        offense, punishable by a fine not to exceed $501.
 5             (3)  The Director of Aging shall notify the  State's
 6        Attorney  of  the  county  in  which  the  long term care
 7        facility is located, or  the  Attorney  General,  of  any
 8        violations of this Section.
 9        (g)  Confidentiality  of records and identities. No files
10    or records maintained by the Office of State Long  Term  Care
11    Ombudsman  shall  be  disclosed unless the State Ombudsman or
12    the ombudsman having the authority over  the  disposition  of
13    such   files   authorizes  the  disclosure  in  writing.  The
14    ombudsman shall not disclose the identity of any complainant,
15    resident, witness or employee of a long  term  care  provider
16    involved in a  complaint or report unless such person or such
17    person's guardian or legal representative consents in writing
18    to  the  disclosure,  or  the disclosure is required by court
19    order.
20        (h)  Legal representation.  The  Attorney  General  shall
21    provide  legal  representation  to  any representative of the
22    Office against whom suit or other legal action is brought  in
23    connection  with  the  performance  of  the  representative's
24    official  duties,  in  accordance  with  the  State  Employee
25    Indemnification Act.
26        (i)  Treatment  by prayer and spiritual means. Nothing in
27    this Act shall be  construed  to  authorize  or  require  the
28    medical  supervision,  regulation or control of remedial care
29    or treatment of any resident in a  long  term  care  facility
30    operated  exclusively  by and for members or adherents of any
31    church or religious denomination the tenets and practices  of
32    which  include  reliance  solely upon spiritual means through
33    prayer for healing.
34    (Source: P.A. 90-639,  eff.  1-1-99;  91-174,  eff.  7-16-99;
 
HB0182 Enrolled             -10-               LRB9100213WHmg
 1    91-656, eff. 1-1-01; revised 1-5-00.)

 2        Section  10.   The  Nursing  Home  Care Act is amended by
 3    changing Section 3-212 and adding Section 3-202.2 as follows:

 4        (210 ILCS 45/3-202.2 new)
 5        Sec. 3-202.2.  Rules; residents with mental  illness.  No
 6    later  than  January 1, 2001, the Department of Public Health
 7    shall file with the Joint Committee on Administrative  Rules,
 8    pursuant  to  the  Illinois  Administrative  Procedure Act, a
 9    proposed rule, or a proposed amendment to an  existing  rule,
10    regarding  the  provision  of services, including assessment,
11    care planning, discharge planning, and treatment, by  nursing
12    facilities to residents who have a serious mental illness.

13        (210 ILCS 45/3-212) (from Ch. 111 1/2, par. 4153-212)
14        Sec. 3-212. Inspection.
15        (a)  The  Department,  whenever  it  deems  necessary  in
16    accordance  with  subsection  (b),  shall inspect, survey and
17    evaluate  every  facility  to   determine   compliance   with
18    applicable   licensure   requirements   and   standards.   An
19    inspection should occur within  120  days  prior  to  license
20    renewal.   The  Department  may periodically visit a facility
21    for the purpose of consultation.  An inspection,  survey,  or
22    evaluation,  other  than  an inspection of financial records,
23    shall be conducted without prior notice to the  facility.   A
24    visit  for the sole purpose of consultation may be announced.
25    The Department shall provide training to surveyors about  the
26    appropriate  assessment,  care  planning, and care of persons
27    with  mental  illness  (other  than  Alzheimer's  disease  or
28    related disorders)  to  enable  its  surveyors  to  determine
29    whether  a  facility  is  complying  with  State  and federal
30    requirements about the assessment, care planning, and care of
31    those persons.
 
HB0182 Enrolled             -11-               LRB9100213WHmg
 1        (a-1)  An employee of a State or unit of local government
 2    agency charged with  inspecting,  surveying,  and  evaluating
 3    facilities  who  directly or indirectly gives prior notice of
 4    an  inspection,  survey,  or  evaluation,   other   than   an
 5    inspection  of  financial  records,  to  a  facility or to an
 6    employee of a facility is guilty of a Class A misdemeanor.
 7        (a-2)  An employee of a State or unit of local government
 8    agency charged  with  inspecting,  surveying,  or  evaluating
 9    facilities   who   willfully   profits   from  violating  the
10    confidentiality of  the  inspection,  survey,  or  evaluation
11    process  shall be guilty of a Class 4 felony and that conduct
12    shall be deemed unprofessional conduct  that  may  subject  a
13    person to loss of his or her professional license.  An action
14    to prosecute a person for violating this subsection (a-2) may
15    be  brought  by  either  the  Attorney General or the State's
16    Attorney in the county where the violation took place.
17        (b)  In  determining  whether  to  make  more  than   the
18    required  number  of  unannounced  inspections,  surveys  and
19    evaluations  of  a facility the Department shall consider one
20    or more of the following: previous  inspection  reports;  the
21    facility's  history  of  compliance with standards, rules and
22    regulations promulgated under  this  Act  and  correction  of
23    violations,  penalties  or  other  enforcement  actions;  the
24    number   and   severity  of  complaints  received  about  the
25    facility; any  allegations  of  resident  abuse  or  neglect;
26    weather  conditions;  health  emergencies;  other  reasonable
27    belief that deficiencies exist.
28        (b-1)  The  Department shall not be required to determine
29    whether a facility certified to participate in  the  Medicare
30    program  under Title XVIII of the Social Security Act, or the
31    Medicaid program under Title XIX of the Social Security  Act,
32    and  which the Department determines by inspection under this
33    Section  or  under  Section  3-702  of  this  Act  to  be  in
34    compliance with the certification requirements of Title XVIII
 
HB0182 Enrolled             -12-               LRB9100213WHmg
 1    or XIX, is in compliance with any  requirement  of  this  Act
 2    that   is   less  stringent  than  or  duplicates  a  federal
 3    certification requirement.  In accordance with subsection (a)
 4    of this Section or  subsection  (d)  of  Section  3-702,  the
 5    Department shall determine whether a certified facility is in
 6    compliance  with requirements of this Act that exceed federal
 7    certification requirements.  If a certified facility is found
 8    to  be  out  of   compliance   with   federal   certification
 9    requirements, the results of an inspection conducted pursuant
10    to  Title XVIII or XIX of the Social Security Act may be used
11    as  the  basis  for  enforcement  remedies   authorized   and
12    commenced  under this Act.  Enforcement of this Act against a
13    certified  facility  shall  be  commenced  pursuant  to   the
14    requirements  of this Act, unless enforcement remedies sought
15    pursuant to Title XVIII or XIX of  the  Social  Security  Act
16    exceed  those  authorized  by  this  Act.   As  used  in this
17    subsection,  "enforcement  remedy"  means  a   sanction   for
18    violating a federal certification requirement or this Act.
19        (c)  Upon  completion  of  each  inspection,  survey  and
20    evaluation,   the   appropriate   Department   personnel  who
21    conducted the inspection, survey or evaluation shall submit a
22    copy of  their  report  to  the  licensee  upon  exiting  the
23    facility,   and   shall  submit  the  actual  report  to  the
24    appropriate regional office of the Department.   Such  report
25    and  any  recommendations  for action by the Department under
26    this Act shall be transmitted to the appropriate  offices  of
27    the  associate  director  of  the  Department,  together with
28    related comments or documentation provided  by  the  licensee
29    which  may  refute  findings  in  the  report,  which explain
30    extenuating  circumstances  that  the  facility   could   not
31    reasonably  have  prevented,  or  which  indicate methods and
32    timetables for correction of deficiencies  described  in  the
33    report.  Without  affecting the application of subsection (a)
34    of Section  3-303,  any  documentation  or  comments  of  the
 
HB0182 Enrolled             -13-               LRB9100213WHmg
 1    licensee  shall  be provided within 10 days of receipt of the
 2    copy of the report.   Such  report  shall  recommend  to  the
 3    Director  appropriate  action  under this Act with respect to
 4    findings  against  a  facility.   The  Director  shall   then
 5    determine   whether   the   report's  findings  constitute  a
 6    violation or violations of which the facility must  be  given
 7    notice.   Such determination shall be based upon the severity
 8    of the finding, the  danger  posed  to  resident  health  and
 9    safety,  the  comments  and  documentation  provided  by  the
10    facility,  the diligence and efforts to correct deficiencies,
11    correction of the reported deficiencies,  the  frequency  and
12    duration  of  similar  findings  in  previous reports and the
13    facility's general inspection history.  Violations  shall  be
14    determined  under this subsection no later than 60 days after
15    completion of each inspection, survey and evaluation.
16        (d)  The Department shall maintain all inspection, survey
17    and evaluation reports for at  least  5  years  in  a  manner
18    accessible to and understandable by the public.
19    (Source: P.A.   88-278;  89-21,  eff.  1-1-96;  89-171,  eff.
20    1-1-96; 89-197, eff. 7-21-95; 89-626, eff. 8-9-96.)

21        Section 15.  The Illinois Public Aid Code is  amended  by
22    changing Section 5-5.5 as follows:

23        (305 ILCS 5/5-5.5) (from Ch. 23, par. 5-5.5)
24        Sec. 5-5.5.  Elements of Payment Rate.
25        (a)  The   Department  of  Public  Aid  shall  develop  a
26    prospective method for determining payment rates for  skilled
27    nursing  and intermediate care services in nursing facilities
28    composed of the following cost elements:
29             (1)  Standard  Services,  with  the  cost  of   this
30        component  being  determined  by  taking into account the
31        actual costs to the facilities of these services  subject
32        to cost ceilings to be defined in the Department's rules.
 
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 1             (2)  Resident   Services,  with  the  cost  of  this
 2        component being determined by  taking  into  account  the
 3        actual costs, needs and utilization of these services, as
 4        derived  from  an assessment of the resident needs in the
 5        nursing facilities.  The  Department  shall  adopt  rules
 6        governing  reimbursement  for resident services as listed
 7        in Section 5-1.1.  Surveys  or  assessments  of  resident
 8        needs  under  this  Section shall include a review by the
 9        facility  of  the  results  of  such  assessments  and  a
10        discussion of issues in dispute  with  authorized  survey
11        staff,  unless  the facility elects not to participate in
12        such  a  review  process.   Surveys  or  assessments   of
13        resident  needs  under  this  Section  may  be  conducted
14        semi-annually  and  payment  rates  relating  to resident
15        services may be changed  on  a  semi-annual  basis.   The
16        Illinois Department shall initiate a project, either on a
17        pilot  basis  or  Statewide,  to  reimburse  the  cost of
18        resident services based on a methodology  which  utilizes
19        an assessment of resident needs to determine the level of
20        reimbursement.  This  methodology shall be different from
21        the payment criteria for resident  services  utilized  by
22        the  Illinois  Department  on  July 1, 1981.  On March 1,
23        1982, and each year thereafter, until such time when  the
24        Illinois  Department  adopts the methodology used in such
25        project for use  statewide  or  the  Illinois  Department
26        reports  to  the  Citizens Assembly/Council on Public Aid
27        that the methodology did not meet the Department's  goals
28        and objectives and therefore is ceasing such project, the
29        Illinois  Department shall report to the General Assembly
30        on the implementation and progress of such  project.  The
31        report shall include:
32                  (A)  A  statement  of the Illinois Department's
33             goals and objectives for such project;
34                  (B)  A description of such  project,  including
 
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 1             the  number  and type of nursing facilities involved
 2             in the project;
 3                  (C)  A description of the methodology  used  in
 4             such project;
 5                  (D)  A description of the Illinois Department's
 6             application of the methodology;
 7                  (E)  A statement on the methodology's effect on
 8             the quality of care given to residents in the sample
 9             nursing facilities; and
10                  (F)  A statement on the cost of the methodology
11             used  in  such project and a comparison of this cost
12             with the cost of the current payment criteria.
13             (3)  Ancillary Services, with the payment rate being
14        developed for each individual type of  service.   Payment
15        shall  be  made  only  when  authorized  under procedures
16        developed by the Department of Public Aid.
17             (4)  Nurse's Aide Training, with the  cost  of  this
18        component  being  determined  by  taking into account the
19        actual cost to the facilities of such training.
20             (5)  Real  Estate  Taxes,  with  the  cost  of  this
21        component being determined by  taking  into  account  the
22        figures  contained  in  the most currently available cost
23        reports (with no imposition of maximums) updated  to  the
24        midpoint  of  the  current  rate  year for long term care
25        services rendered between July 1, 1984 and June 30, 1985,
26        and with the cost of this component being  determined  by
27        taking  into  account the actual 1983 taxes for which the
28        nursing  homes  were  assessed  (with  no  imposition  of
29        maximums) updated to the midpoint  of  the  current  rate
30        year for long term care services rendered between July 1,
31        1985 and June 30, 1986.
32        (b)  In  developing  a prospective method for determining
33    payment rates  for  skilled  nursing  and  intermediate  care
34    services  in nursing facilities, the Department of Public Aid
 
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 1    shall consider the following cost elements:
 2             (1)  Reasonable capital cost determined by utilizing
 3        incurred interest rate  and  the  current  value  of  the
 4        investment, including land, utilizing composite rates, or
 5        by  utilizing  such other reasonable cost related methods
 6        determined by the Department. However, beginning with the
 7        rate reimbursement period effective  July  1,  1987,  the
 8        Department   shall   be   prohibited  from  establishing,
 9        including, and implementing any  depreciation  factor  in
10        calculating the capital cost element.
11             (2)  Profit,  with  the actual amount being produced
12        and accruing to the providers in the form of a return  on
13        their  total investment, on the basis of their ability to
14        economically and efficiently deliver a type  of  service.
15        The  method  of  payment may assure the opportunity for a
16        profit, but shall not guarantee or establish  a  specific
17        amount as a cost.
18        (c)  The Illinois Department may implement the amendatory
19    changes  to  this Section made by this amendatory Act of 1991
20    through the use of emergency rules  in  accordance  with  the
21    provisions  of  Section  5.02  of the Illinois Administrative
22    Procedure Act. For purposes of  the  Illinois  Administrative
23    Procedure  Act,  the  adoption  of  rules  to  implement  the
24    amendatory  changes  to  this Section made by this amendatory
25    Act of 1991 shall be deemed an emergency  and  necessary  for
26    the public interest, safety and welfare.
27        (d)  No  later  than  January  1, 2001, the Department of
28    Public  Aid  shall  file  with   the   Joint   Committee   on
29    Administrative Rules, pursuant to the Illinois Administrative
30    Procedure Act, a proposed rule, or a proposed amendment to an
31    existing  rule,  regarding  payment for appropriate services,
32    including assessment, care planning, discharge planning,  and
33    treatment  provided  by  nursing  facilities to residents who
34    have a serious mental illness.
 
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 1    (Source: P.A. 86-651; 86-705; 86-1028; 87-14; 87-435.)

 2        Section 99.  Effective date.  This Act takes effect  upon
 3    becoming law.

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