State of Illinois
91st General Assembly
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91_SB0807

 
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 1        AN ACT in relation  to  the  Health  Facilities  Planning
 2    Board, amending and repealing named Acts.

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

 5        Section 5.  The Illinois Health  Finance  Reform  Act  is
 6    amended by changing Section 2-2 as follows:

 7        (20 ILCS 2215/2-2) (from Ch. 111 1/2, par. 6502-2)
 8        Sec.   2-2.    Council  Duties.   The  Council  shall  be
 9    responsible for:
10        (a)  Collecting and publicizing  hospital  financing  and
11    cost data pursuant to Article IV for the purposes of carrying
12    out its duties under this Act.
13        (b)  Studying  the  health  care  financing system in the
14    State of Illinois, and recommending to the  General  Assembly
15    what  it  deems  to be the most appropriate and comprehensive
16    cost containment system for the State.  In its deliberations,
17    the Council shall consider:
18        (1)  The health care delivery  system  in  the  State  of
19    Illinois and hospitals' role in that system;
20        (2)  Minimizing  cost shifting between publicly supported
21    patients and private payors;
22        (3)  The quality of care  provided  by  hospitals  as  it
23    relates to their level of reimbursement;
24        (4)  Cost  containment  alternatives  for  Illinois State
25    employees' health benefit  plans  currently  available  under
26    Illinois law;
27        (5)  The   efficacy   of   current  certificate  of  need
28    processes under the Illinois Health Facilities  Planning  Act
29    and possible alternative measures to contain costs, including
30    capital expenditure caps;
31        (6)  The  efficacy  of  the current State health planning
 
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 1    process;
 2        (7)  The efficacy of State bonding authorities for health
 3    facilities construction and development;
 4        (8)  The financial  hardships  experienced  by  hospitals
 5    primarily serving the poor; and
 6        (9)  Accessibility of hospital care.
 7        (c)  Monitoring  the extent to which hospitals in general
 8    and  each  individual  hospital  in  the  State  limit  price
 9    increases to the rate of increase of prices  in  the  general
10    economy.
11        (d)  Promoting  and counseling the general public on more
12    effective procurement and  utilization  of  health  services,
13    through  a special Health Care Consumer Affairs Advisor to be
14    employed by the Council.
15    (Source: P.A. 83-1243.)

16        (20 ILCS 3960/Act rep.)
17        Section 10.  The Illinois Health Facilities Planning  Act
18    is repealed.

19        (30 ILCS 105/5.213 rep.)
20        Section   15.   The  State  Finance  Act  is  amended  by
21    repealing Section 5.213.

22        Section 20.  The Hospital  District  Law  is  amended  by
23    changing Section 15 as follows:

24        (70 ILCS 910/15) (from Ch. 23, par. 1265)
25        Sec.   15.    A  Hospital  District  shall  constitute  a
26    municipal corporation and body  politic  separate  and  apart
27    from  any  other  municipality,  the State of Illinois or any
28    other public  or  governmental  agency  and  shall  have  and
29    exercise  the  following  governmental  powers, and all other
30    powers incidental, necessary,  convenient,  or  desirable  to
 
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 1    carry out and effectuate such express powers.
 2        1.  To  establish  and  maintain  a hospital and hospital
 3    facilities within or outside its  corporate  limits,  and  to
 4    construct,  acquire,  develop, expand, extend and improve any
 5    such hospital or hospital facility.  If a  Hospital  District
 6    utilizes  its  authority to levy a tax pursuant to Section 20
 7    of this Act for the purpose of establishing  and  maintaining
 8    hospitals  or  hospital  facilities,  such  District shall be
 9    prohibited from establishing  and  maintaining  hospitals  or
10    hospital facilities located outside of its district unless so
11    authorized  by  referendum.   To approve the provision of any
12    service and to approve any contract or other arrangement  not
13    prohibited   by   a  hospital  licensed  under  the  Hospital
14    Licensing Act, incorporated under the General  Not-For-Profit
15    Corporation Act, and exempt from taxation under paragraph (3)
16    of  subsection  (c)  of  Section  501 of the Internal Revenue
17    Code.
18        2.  To acquire land in fee simple,  rights  in  land  and
19    easements  upon,  over or across land and leasehold interests
20    in land and tangible and intangible personal property used or
21    useful  for   the   location,   establishment,   maintenance,
22    development,  expansion, extension or improvement of any such
23    hospital or hospital facility.  Such acquisition  may  be  by
24    dedication,  purchase, gift, agreement, lease, use or adverse
25    possession or by condemnation.
26        3.  To operate, maintain and  manage  such  hospital  and
27    hospital  facility,  and to make and enter into contracts for
28    the use, operation or management of and to provide rules  and
29    regulations  for  the  operation,  management  or use of such
30    hospital or hospital facility.
31        Such contracts may include the lease by the  District  of
32    all  or  any  portion  of  its facilities to a not-for-profit
33    corporation organized by the District's board  of  directors.
34    The rent to be paid pursuant to any such lease shall be in an
 
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 1    amount  deemed appropriate by the board of directors.  Any of
 2    the remaining assets which are not  the  subject  of  such  a
 3    lease  may  be conveyed and transferred to the not-for-profit
 4    corporation organized by the District's  board  of  directors
 5    provided   that  the  not-for-profit  corporation  agrees  to
 6    discharge or assume such debts, liabilities, and  obligations
 7    of  the  District  as  determined  to  be  appropriate by the
 8    District's board of directors.
 9        4.  To  fix,  charge  and  collect  reasonable  fees  and
10    compensation for the use or occupancy of such hospital or any
11    part thereof, or any hospital facility, and for nursing care,
12    medicine, attendance, or other  services  furnished  by  such
13    hospital  or  hospital facilities, according to the rules and
14    regulations prescribed by the board from time to time.
15        5.  To borrow  money  and  to  issue  general  obligation
16    bonds, revenue bonds, notes, certificates, or other evidences
17    of  indebtedness  for the purpose of accomplishing any of its
18    corporate purposes, subject to compliance with any conditions
19    or limitations set forth in this Act or the Health Facilities
20    Planning Act or otherwise provided by the constitution of the
21    State of Illinois.
22        6.  To employ or enter into contracts for the  employment
23    of  any  person,  firm,  or corporation, and for professional
24    services, necessary or desirable for  the  accomplishment  of
25    the   corporate   objects  of  the  District  or  the  proper
26    administration, management,  protection  or  control  of  its
27    property.
28        7.  To  maintain  such  hospital  for  the benefit of the
29    inhabitants of the area comprising the District who are sick,
30    injured, or maimed regardless of race, creed, religion,  sex,
31    national  origin or color, and to adopt such reasonable rules
32    and regulations as may be necessary to render the use of  the
33    hospital  of  the greatest benefit to the greatest number; to
34    exclude from the use of the hospital all persons who wilfully
 
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 1    disregard any of the rules and regulations so established; to
 2    extend the privileges and use  of  the  hospital  to  persons
 3    residing outside the area of the District upon such terms and
 4    conditions  as the board of directors prescribes by its rules
 5    and regulations.
 6        8.  To police its property and to exercise police  powers
 7    in  respect  thereto  or in respect to the enforcement of any
 8    rule or regulation provided by the ordinances of the District
 9    and to  employ  and  commission  police  officers  and  other
10    qualified persons to enforce the same.
11        The  use  of  any such hospital or hospital facility of a
12    District shall be subject to the  reasonable  regulation  and
13    control  of  the  District and upon such reasonable terms and
14    conditions as shall be established by its board of directors.
15        A regulatory ordinance of a District  adopted  under  any
16    provision  of  this  Section  may provide for a suspension or
17    revocation of any rights or privileges within the control  of
18    the   District   for  a  violation  of  any  such  regulatory
19    ordinance.
20        Nothing in this Section or in other  provisions  of  this
21    Act  shall be construed to authorize the District or board to
22    establish or enforce any regulation or  rule  in  respect  to
23    hospitalization  or  in  the operation or maintenance of such
24    hospital or any hospital facilities within  its  jurisdiction
25    which  is  in  conflict  with  any  federal  or  state law or
26    regulation applicable to the same subject matter.
27        9.  To provide for the benefit  of  its  employees  group
28    life,  health,  accident,  hospital and medical insurance, or
29    any combination of such types of insurance,  and  to  further
30    provide  for  its employees by the establishment of a pension
31    or retirement plan or system; to effectuate the establishment
32    of any such insurance program or pension or  retirement  plan
33    or  system,  a  Hospital  District  may  make,  enter into or
34    subscribe to agreements, contracts, policies  or  plans  with
 
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 1    private  insurance  companies.   Such  insurance  may include
 2    provisions for employees who rely on treatment  by  spiritual
 3    means  alone  through  prayer  for healing in accord with the
 4    tenets  and   practice   of   a   well-recognized   religious
 5    denomination.   The board of directors of a Hospital District
 6    may provide for payment by the District of a portion  of  the
 7    premium  or  charge  for  such  insurance or for a pension or
 8    retirement plan for employees with the  employee  paying  the
 9    balance of such premium or charge.  If the board of directors
10    of  a  Hospital  District undertakes a plan pursuant to which
11    the Hospital District pays  a  portion  of  such  premium  or
12    charge,  the  board  shall  provide  for  the withholding and
13    deducting from the compensation of such employees as  consent
14    to  joining  such  insurance program or pension or retirement
15    plan or system, the balance of the premium or charge for such
16    insurance or plan or system.
17        If the board of directors of a Hospital District does not
18    provide for a program or plan pursuant to which such District
19    pays a portion  of  the  premium  or  charge  for  any  group
20    insurance  program  or  pension or retirement plan or system,
21    the board may provide for the withholding and deducting  from
22    the  compensation  of  such  employees as consent thereto the
23    premium or charge  for  any  group  life,  health,  accident,
24    hospital   and  medical  insurance  or  for  any  pension  or
25    retirement plan or system.
26        A Hospital District deducting from  the  compensation  of
27    its  employees  for any group insurance program or pension or
28    retirement plan or system,  pursuant  to  this  Section,  may
29    agree  to  receive  and  may  receive  reimbursement from the
30    insurance  company  for   the   cost   of   withholding   and
31    transferring such amount to the company.
32        10.  To  sell  at  public  auction  or  by sealed bid and
33    convey any real estate held by the District which  the  board
34    of  directors, by ordinance adopted by at least 2/3rds of the
 
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 1    members of the board then holding office, has  determined  to
 2    be  no  longer  necessary  or  useful  to,  or  for  the best
 3    interests of, the District.
 4        An ordinance directing the  sale  of  real  estate  shall
 5    include the legal description of the real estate, its present
 6    use,  a statement that the property is no longer necessary or
 7    useful to, or for the best interests of,  the  District,  the
 8    terms  and  conditions of the sale, whether the sale is to be
 9    at public auction or sealed bid,  and  the  date,  time,  and
10    place  the  property  is to be sold at auction or sealed bids
11    opened.
12        Before making a sale by  virtue  of  the  ordinance,  the
13    board of directors shall cause notice of the proposal to sell
14    to  be  published  once each week for 3 successive weeks in a
15    newspaper published, or,  if  none  is  published,  having  a
16    general  circulation,  in the district, the first publication
17    to be not less than 30 days before the day  provided  in  the
18    notice  for  the  public sale or opening of bids for the real
19    estate.
20        The notice of the proposal to sell shall include the same
21    information included in the ordinance directing the sale  and
22    shall  advertise  for  bids  therefor.  A sale of property by
23    public auction shall be held at the property to be sold at  a
24    time  and  date  determined  by  the board of directors.  The
25    board of directors may accept the high bid or any  other  bid
26    determined  to  be in the best interests of the district by a
27    vote of 2/3rds of the board then holding  office,  but  by  a
28    majority  vote  of  those holding office, they may reject any
29    and all bids.
30        The chairman and secretary  of  the  board  of  directors
31    shall  execute  all documents necessary for the conveyance of
32    such real property sold pursuant to the foregoing authority.
33        11.  To establish and administer a program of  loans  for
34    postsecondary  students pursuing degrees in accredited public
 
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 1    health-related educational programs at public institutions of
 2    higher education.  If  a  student  is  awarded  a  loan,  the
 3    individual  shall  agree  to  accept  employment  within  the
 4    hospital district upon graduation from the public institution
 5    of  higher  education.  For the purposes of this Act, "public
 6    institutions of higher education"  means  the  University  of
 7    Illinois;   Southern   Illinois   University;  Chicago  State
 8    University;  Eastern  Illinois  University;  Governors  State
 9    University; Illinois State University; Northeastern  Illinois
10    University;  Northern  Illinois  University; Western Illinois
11    University; the public community colleges of the  State;  and
12    any other public colleges, universities or community colleges
13    now  or  hereafter  established  or authorized by the General
14    Assembly.   The  district's  board  of  directors  shall   by
15    resolution   provide   for  eligibility  requirements,  award
16    criteria, terms of financing, duration of employment accepted
17    within the district  and  such  other  aspects  of  the  loan
18    program   as   its   establishment   and  administration  may
19    necessitate.
20        12.  To establish and maintain congregate housing  units;
21    to acquire land in fee simple and leasehold interests in land
22    for the location, establishment, maintenance, and development
23    of  those  housing  units;  to  borrow  funds  and  give debt
24    instruments, real estate mortgages, and security interests in
25    personal property, contract rights, and general  intangibles;
26    and  to enter into any contract required for participation in
27    any federal or State programs.
28    (Source: P.A. 89-4, eff. 1-1-96; 89-104, eff. 7-7-95; 89-626,
29    eff. 8-9-96.)

30        Section 25.  The Alternative Health Care Delivery Act  is
31    amended by changing Sections 20 and 30 as follows:

32        (210 ILCS 3/20)
 
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 1        Sec.  20.   Board  responsibilities.   The State Board of
 2    Health shall have the  responsibilities  set  forth  in  this
 3    Section.
 4        (a)  The Board shall investigate new health care delivery
 5    models   and  recommend  to  the  Governor  and  the  General
 6    Assembly, through the Department, those models that should be
 7    authorized  as  alternative  health  care  models  for  which
 8    demonstration  programs  should   be   initiated.    In   its
 9    deliberations, the Board shall use the following criteria:
10             (1)  The  feasibility  of  operating  the  model  in
11        Illinois,   based  on a review of the experience in other
12        states including the impact on health   professionals  of
13        other health care programs or facilities.
14             (2)  The  potential  of  the  model to meet an unmet
15        need.
16             (3)  The potential of the  model  to  reduce  health
17        care costs to consumers, costs to third party payors, and
18        aggregate costs to the public.
19             (4)  The  potential  of  the  model  to  maintain or
20        improve the standards of health  care  delivery  in  some
21        measurable fashion.
22             (5)  The potential of the model to provide increased
23        choices or access for patients.
24        (b)  The Board shall evaluate and make recommendations to
25    the   Governor   and   the   General  Assembly,  through  the
26    Department,   regarding   alternative   health   care   model
27    demonstration programs established under  this  Act,  at  the
28    midpoint   and   end  of  the  period  of  operation  of  the
29    demonstration programs.   The  report  shall  include,  at  a
30    minimum, the following:
31             (1)  Whether  the  alternative  health  care  models
32        improved   access  to   health  care  for  their  service
33        populations in the State.
34             (2)  The quality of care provided by the alternative
 
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 1        health   care  models  as  may  be  evidenced  by  health
 2        outcomes,  surveillance   reports,   and   administrative
 3        actions taken by the Department.
 4             (3)  The  cost and cost effectiveness to the public,
 5        third-party payors, and  government  of  the  alternative
 6        health   care  models,  including  the  impact  of  pilot
 7        programs on aggregate health care costs in the  area.  In
 8        addition  to any other information collected by the Board
 9        under  this  Section,  the  Board  shall   collect   from
10        postsurgical  recovery  care centers uniform billing data
11        substantially the same as specified in Section 4-2(e)  of
12        the  Illinois  Health  Finance Reform Act.  To facilitate
13        its evaluation of that data, the Board  shall  forward  a
14        copy  of  the  data  to  the  Illinois  Health  Care Cost
15        Containment Council.  All patient  identifiers  shall  be
16        removed from the data before it is submitted to the Board
17        or Council.
18             (4)  The  impact  of  the  alternative  health  care
19        models  on the health care system in that area, including
20        changing patterns  of  patient  demand  and  utilization,
21        financial  viability,  and  feasibility  of  operation of
22        service in inpatient and alternative models in the area.
23             (5)  The implementation by alternative  health  care
24        models of any special commitments made during application
25        review to the Illinois Health Facilities Planning Board.
26             (6)  The continuation, expansion, or modification of
27        the alternative health care models.
28        (c)  The   Board  shall  advise  the  Department  on  the
29    definition  and  scope  of  alternative  health  care  models
30    demonstration programs.
31        (d)  In carrying  out  its  responsibilities  under  this
32    Section,  the Board shall seek the advice of other Department
33    advisory boards or committees that may  be  impacted  by  the
34    alternative health care model or the proposed model of health
 
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 1    care  delivery.   The  Board shall also seek input from other
 2    interested  parties,  which  may   include   holding   public
 3    hearings.
 4        (e)  The  Board  shall otherwise advise the Department on
 5    the administration of the Act as the Board deems appropriate.
 6    (Source: P.A. 87-1188; 88-441.)

 7        (210 ILCS 3/30)
 8        Sec.  30.   Demonstration  program   requirements.    The
 9    requirements  set  forth  in  this  Section  shall  apply  to
10    demonstration programs.
11        (a)  There shall be no more than:
12             (i)  3  subacute  care  hospital  alternative health
13        care models in the City of Chicago (one of which shall be
14        located on a designated site and shall have been licensed
15        as a hospital under the Illinois Hospital  Licensing  Act
16        within  the  10  years immediately before the application
17        for a license);
18             (ii)  2 subacute care  hospital  alternative  health
19        care  models in the demonstration program for each of the
20        following areas:
21                  (1)  Cook County outside the City of Chicago.
22                  (2)  DuPage,  Kane,  Lake,  McHenry,  and  Will
23             Counties.
24                  (3)  Municipalities with a  population  greater
25             than  50,000  not  located in the areas described in
26             item (i) of subsection (a) and  paragraphs  (1)  and
27             (2) of item (ii) of subsection (a); and
28             (iii)  4  subacute  care hospital alternative health
29        care models in the demonstration program for rural areas.
30        In selecting among applicants for these licenses in rural
31    areas,  the  Health  Facilities  Planning   Board   and   the
32    Department  shall  give  preference  to hospitals that may be
33    unable for economic reasons to provide continued  service  to
 
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 1    the  community  in which they are located unless the hospital
 2    were to receive an alternative health care model license.
 3        (a-5)  There  shall  be  no  more  than  a  total  of  12
 4    postsurgical recovery care  center  alternative  health  care
 5    models in the demonstration program, located as follows:
 6             (1)  Two in the City of Chicago.
 7             (2)  Two in Cook County outside the City of Chicago.
 8        At  least  one  of  these shall be owned or operated by a
 9        hospital devoted exclusively to caring for children.
10             (3)  Two in Kane, Lake, and McHenry Counties.
11             (4)  Four in municipalities  with  a  population  of
12        50,000  or  more  not  located  in the areas described in
13        paragraphs (1), (2), and (3), 3 of which shall  be  owned
14        or  operated  by  hospitals, at least 2 of which shall be
15        located in  counties  with  a  population  of  less  than
16        175,000,  according  to  the most recent decennial census
17        for which data are available, and one of which  shall  be
18        owned  or  operated  by  an ambulatory surgical treatment
19        center.
20             (5)  Two in rural areas,  both  of  which  shall  be
21        owned or operated by hospitals.
22        There  shall  be  no  postsurgical  recovery  care center
23    alternative health  care  models  located  in  counties  with
24    populations  greater than 600,000 but less than 1,000,000.  A
25    proposed postsurgical recovery care center must be  owned  or
26    operated by a hospital if it is to be located within, or will
27    primarily  serve  the  residents of, a health service area in
28    which more than 60% of  the  gross  patient  revenue  of  the
29    hospitals  within  that  health service area are derived from
30    Medicaid  and  Medicare,  according  to  the  most   recently
31    available  calendar  year  data from the Illinois Health Care
32    Cost Containment Council.  Nothing in  this  paragraph  shall
33    preclude  a  hospital  and  an  ambulatory surgical treatment
34    center  from  forming  a  joint  venture  or   developing   a
 
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 1    collaborative  agreement  to  own  or  operate a postsurgical
 2    recovery care center.
 3        (a-10)  There  shall  be  no  more  than  a  total  of  8
 4    children's respite care center alternative health care models
 5    in the demonstration  program,  which  shall  be  located  as
 6    follows:
 7             (1)  One in the City of Chicago.
 8             (2)  One in Cook County outside the City of Chicago.
 9             (3)  A  total  of 2 in the area comprised of DuPage,
10        Kane, Lake, McHenry, and Will counties.
11             (4)  A  total  of  2  in   municipalities   with   a
12        population  of  50,000  or  more  and  not located in the
13        areas described in paragraphs (1), (2), or (3).
14             (5)  A total of 2 in rural areas, as defined by the
15        Health Facilities Planning Board.
16        No more than one children's respite care model owned  and
17    operated  by  a  licensed skilled pediatric facility shall be
18    located in each of the areas designated  in  this  subsection
19    (a-10).
20        (b)  (Blank).     Alternative  health  care  models shall
21    obtain  a  certificate  of  need  from  the  Illinois  Health
22    Facilities  Planning  Board   under   the   Illinois   Health
23    Facilities  Planning  Act  before  receiving a license by the
24    Department.  Alternative  health  care  models  in  medically
25    underserved  areas  shall  receive  priority  in  obtaining a
26    certificate of need.
27        (c)  An alternative health care model  license  shall  be
28    issued for a period of one year and shall be annually renewed
29    if  the facility or program is in substantial compliance with
30    the Department's rules adopted under  this  Act.  A  licensed
31    alternative  health  care  model  that  continues  to  be  in
32    substantial   compliance   after   the   conclusion   of  the
33    demonstration program shall be eligible for  annual  renewals
34    unless  and until a different licensure program for that type
 
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 1    of health care  model  is  established  by  legislation.  The
 2    Department may issue a provisional license to any alternative
 3    health care model that does not substantially comply with the
 4    provisions  of  this Act and the rules adopted under this Act
 5    if (i) the Department finds that the alternative health  care
 6    model  has  undertaken  changes  and  corrections  which upon
 7    completion will render the alternative health care  model  in
 8    substantial  compliance  with this Act and rules and (ii) the
 9    health and safety of the patients of the  alternative  health
10    care  model will be protected during the period for which the
11    provisional license is issued.  The Department  shall  advise
12    the  licensee  of  the conditions under which the provisional
13    license  is  issued,  including  the  manner  in  which   the
14    alternative  health  care  model  fails  to  comply  with the
15    provisions of this Act and rules, and the time  within  which
16    the  changes  and  corrections  necessary for the alternative
17    health care model to substantially comply with this  Act  and
18    rules shall be completed.
19        (d)  Alternative    health   care   models   shall   seek
20    certification under Titles  XVIII  and  XIX  of  the  federal
21    Social  Security  Act.   In addition, alternative health care
22    models shall provide charitable  care  consistent  with  that
23    provided   by   comparable   health  care  providers  in  the
24    geographic area.
25        (d-5)  The  Illinois  Department  of   Public   Aid,   in
26    cooperation  with  the  Illinois Department of Public Health,
27    shall develop and implement a reimbursement  methodology  for
28    all  facilities  participating  in the demonstration program.
29    The Illinois Department of Public Aid shall keep a record  of
30    services   provided   under   the  demonstration  program  to
31    recipients of medical assistance under  the  Illinois  Public
32    Aid   Code   and  shall  submit  an  annual  report  of  that
33    information to the Illinois Department of Public Health.
34        (e)  Alternative health care models shall, to the  extent
 
                            -15-               LRB9106074MWmb
 1    possible,  link  and  integrate  their  services  with nearby
 2    health care facilities.
 3        (f)  Each alternative health care model shall implement a
 4    quality assurance program with  measurable  benefits  and  at
 5    reasonable cost.
 6    (Source:  P.A.  88-441; 88-490; 88-670, eff. 12-2-94; 89-393,
 7    eff. 8-20-95.)

 8        (210 ILCS 3/36.5 rep.)
 9        Section 30.  The Alternative Health Care Delivery Act  is
10    amended by repealing Section 36.5.

11        Section  35.  The  Life Care Facilities Act is amended by
12    changing Sections 2 and 7 as follows:

13        (210 ILCS 40/2) (from Ch. 111 1/2, par. 4160-2)
14        Sec.  2.   As  used  in  this  Act,  unless  the  context
15    otherwise requires:
16        (a)  "Department" means the Department of Public Health.
17        (b)  "Director" means the Director of the Department.
18        (c)  "Life care contract" means a contract to provide  to
19    a person for the duration of such person's life or for a term
20    in  excess of one year, nursing services, medical services or
21    personal care services, in addition to  maintenance  services
22    for  such person in a facility, conditioned upon the transfer
23    of an entrance fee  to  the  provider  of  such  services  in
24    addition  to  or  in  lieu of the payment of regular periodic
25    charges for the care and services involved.
26        (d)  "Provider" means  a  person  who  provides  services
27    pursuant to a life care contract.
28        (e)  "Resident"  means  a  person  who enters into a life
29    care contract with a provider, or who is designated in a life
30    care contract to be a person provided  with  maintenance  and
31    nursing, medical or personal care services.
 
                            -16-               LRB9106074MWmb
 1        (f)  "Facility"  means  a  place  or  places  in  which a
 2    provider  undertakes  to  provide  a  resident  with  nursing
 3    services, medical services  or  personal  care  services,  in
 4    addition  to maintenance services for a term in excess of one
 5    year or for life pursuant to a life care contract.  The  term
 6    also  means  a place or places in which a provider undertakes
 7    to provide such services to a non-resident.
 8        (g)  "Living unit" means an apartment, room or other area
 9    within a facility set aside for the exclusive use of  one  or
10    more identified residents.
11        (h)  "Entrance fee" means an initial or deferred transfer
12    to a provider of a sum of money or property, made or promised
13    to  be  made  by a person entering into a life care contract,
14    which assures a resident of services pursuant to a life  care
15    contract.
16        (i)  "Permit" means a written authorization to enter into
17    life care contracts issued by the Department to a provider.
18        (j)  "Medical  services"  means those services pertaining
19    to medical or dental care that are  performed  in  behalf  of
20    patients  at  the direction of a physician licensed under the
21    Medical Practice Act of 1987 or a dentist licensed under  the
22    Illinois  Dental Practice Act by such physicians or dentists,
23    or by a registered or licensed practical nurse as defined  in
24    the  Nursing  and  Advanced  Practice Nursing Act or by other
25    professional and technical personnel.
26        (k)  "Nursing services" means those  services  pertaining
27    to  the  curative,  restorative  and  preventive  aspects  of
28    nursing  care  that  are  performed  at  the  direction  of a
29    physician licensed under the Medical Practice Act of 1987  by
30    or   under  the  supervision  of  a  registered  or  licensed
31    practical nurse  as  defined  in  the  Nursing  and  Advanced
32    Practice Nursing Act.
33        (l)  "Personal   care  services"  means  assistance  with
34    meals, dressing, movement, bathing or other personal needs or
 
                            -17-               LRB9106074MWmb
 1    maintenance, or general  supervision  and  oversight  of  the
 2    physical  and  mental  well-being  of  an  individual, who is
 3    incapable of maintaining a private, independent residence  or
 4    who  is  incapable  of  managing  his person whether or not a
 5    guardian has been appointed for such individual.
 6        (m)  "Maintenance  services"  means  food,  shelter   and
 7    laundry services.
 8        (n)  (Blank).  "Certificates of Need" means those permits
 9    issued pursuant to the Illinois  Health  Facilities  Planning
10    Act as now or hereafter amended.
11        (o)  "Non-resident" means a person admitted to a facility
12    who has not entered into a life care contract.
13    (Source: P.A. 90-742, eff. 8-13-98.)

14        (210 ILCS 40/7) (from Ch. 111 1/2, par. 4160-7)
15        Sec.  7.   As  a  condition  for the issuance of a permit
16    pursuant to  this  Act,  the  provider  shall  establish  and
17    maintain  on a current basis, a letter of credit or an escrow
18    account with  a  bank,  trust  company,  or  other  financial
19    institution  located in the State of Illinois.  The letter of
20    credit shall be in an  amount  and  form  acceptable  to  the
21    Department,  but  in  no  event  shall the amount exceed that
22    applicable to the corresponding escrow agreement alternative,
23    as described below.  The terms of the escrow agreement  shall
24    meet the following provisions:
25        (a)  Requirements for new facilities.
26        (1)  If  the  entrance fee applies to a living unit which
27    has  not  previously  been  occupied  by  any  resident,  all
28    entrance fee payments representing either all or any  smaller
29    portion of the total entrance fee shall be paid to the escrow
30    agent by the resident.
31        (2)  When  the  provider  has  sold  at  least 1/2 of its
32    living units, obtained a mortgage commitment, if needed,  and
33    obtained  all  necessary  zoning  permits and Certificates of
 
                            -18-               LRB9106074MWmb
 1    Need, if  required,  the  escrow  agent  may  release  a  sum
 2    representing  1/5 of the resident's total entrance fee to the
 3    provider.  Upon completion of the foundation  of  the  living
 4    unit  an  additional 1/5 of the resident's total entrance fee
 5    may be released to the provider.  When  the  living  unit  is
 6    under  roof  a  further  and additional 1/5 of the resident's
 7    total entrance fee may be  released  to  the  provider.   All
 8    remaining  monies,  if  any, shall remain in escrow until the
 9    resident's living unit is substantially completed  and  ready
10    for occupancy by the resident.  When the living unit is ready
11    for  occupancy  the  escrow  agent  may release the remaining
12    escrow amount  to  the  provider  and  further  entrance  fee
13    payments, if any, may be paid by the resident to the provider
14    directly.  All  monies released from escrow shall be used for
15    the facility and for no other purpose.
16        (b)  General requirements for all  facilities,  including
17    new and existing facilities.
18        (1)  At  the  time of resident occupancy and at all times
19    thereafter, the escrow amount shall be  in  an  amount  which
20    equals  or  exceeds  the  aggregate  principal  and  interest
21    payments due during the next 6 months on account of any first
22    mortgage  or  other  long-term  financing  of  the  facility.
23    Existing  facilities shall have 2 years from the date of this
24    Act becoming  law  to  comply  with  this  subsection.   Upon
25    application  from a facility showing good cause, the Director
26    may extend compliance with  this  subsection  one  additional
27    year.
28        (2)  Notwithstanding  paragraph  (1)  of this subsection,
29    the escrow  monies  required  under  paragraph  (1)  of  this
30    subsection  may  be released to the provider upon approval by
31    the Director.  The Director may attach such conditions on the
32    release of monies as he deems fit including, but not  limited
33    to,  the performance of an audit which satisfies the Director
34    that the facility is solvent, a plan  from  the  facility  to
 
                            -19-               LRB9106074MWmb
 1    bring  the  facility back in compliance with paragraph (1) of
 2    this subsection, and a repayment schedule.
 3        (3)  The principal of the escrow account may be  invested
 4    with  the  earnings  thereon  payable  to  the provider as it
 5    accrues.
 6        (4)  If the facility ceases to operate all monies in  the
 7    escrow  account  except the amount representing principal and
 8    interest shall be repaid by the escrow agent to the resident.
 9        (5)  Balloon payments due at conclusion of  the  mortgage
10    shall  not be subject to the escrow requirements of paragraph
11    (1) this subsection.
12    (Source: P.A. 85-1349.)

13        Section 40.  The Nursing Home  Care  Act  is  amended  by
14    changing Sections 3-102.2 and 3-103 as follows:

15        (210 ILCS 45/3-102.2)
16        Sec.  3-102.2.   Supported  congregate living arrangement
17    demonstration.  The Illinois Department  may  grant  no  more
18    than  3  waivers  from  the  requirements  of  this  Act  for
19    facilities  participating  in the supported congregate living
20    arrangement demonstration.  A joint waiver  request  must  be
21    made  by  an  applicant  and the Department on Aging.  If the
22    Department on Aging does not act upon an  application  within
23    60 days, the applicant may submit a written waiver request on
24    its  own  behalf.  The waiver request must include a specific
25    program plan describing the types of residents to  be  served
26    and  the services that will be provided in the facility.  The
27    Department shall conduct an on-site review at  each  facility
28    annually  or  as  often  as necessary to ascertain compliance
29    with the program plan.  The Department may revoke the  waiver
30    if  it determines that the facility is not in compliance with
31    the program plan.  Nothing  in  this  Section  prohibits  the
32    Department from conducting complaint investigations.
 
                            -20-               LRB9106074MWmb
 1          A  facility  granted a waiver under this Section is not
 2    subject to  the  Illinois  Health  Facilities  Planning  Act,
 3    unless  it  subsequently applies for a certificate of need to
 4    convert to a  nursing  facility.   A  facility  applying  for
 5    conversion  shall  meet the licensure and certificate of need
 6    requirements in effect as of the date  of  application,   and
 7    this provision may not be waived.
 8    (Source: P.A. 89-530, eff. 7-19-96.)

 9        (210 ILCS 45/3-103) (from Ch. 111 1/2, par. 4153-103)
10        Sec.  3-103.  The procedure for obtaining a valid license
11    shall be as follows:
12        (1)  Application to operate a facility shall be  made  to
13    the Department on forms furnished by the Department.
14        (2)  All  applications,  except  those  of  homes for the
15    aged, shall be accompanied by an application fee of $200  for
16    an  annual  license  and  $400  for a 2 year license. The fee
17    shall be deposited with the State  Treasurer  into  the  Long
18    Term Care Monitor/Receiver Fund, which is hereby created as a
19    special  fund in the State Treasury.  This special fund is to
20    be used  by  the  Department  for  expenses  related  to  the
21    appointment   of  monitors  and  receivers  as  contained  in
22    Sections 3-501 through 3-517.  At  the  end  of  each  fiscal
23    year, any funds in excess of $1,000,000 held in the Long Term
24    Care  Monitor/Receiver Fund shall be deposited in the State's
25    General Revenue Fund. The application shall be under oath and
26    the submission of false or misleading information shall be  a
27    Class  A  misdemeanor.  The  application  shall  contain  the
28    following information:
29             (a)  The  name  and  address  of the applicant if an
30        individual, and if a firm, partnership,  or  association,
31        of   every   member   thereof,  and  in  the  case  of  a
32        corporation, the name and  address  thereof  and  of  its
33        officers  and  its registered agent, and in the case of a
 
                            -21-               LRB9106074MWmb
 1        unit of local government, the name  and  address  of  its
 2        chief executive officer;
 3             (b)  The name and location of the facility for which
 4        a license is sought;
 5             (c)  The  name  of the person or persons under whose
 6        management or supervision the facility will be conducted;
 7             (d)  The number and  type  of  residents  for  which
 8        maintenance, personal care, or nursing is to be provided;
 9        and
10             (e)  Such   information   relating  to  the  number,
11        experience,  and  training  of  the  employees   of   the
12        facility,  any management agreements for the operation of
13        the facility, and of the moral character of the applicant
14        and employees as the Department may deem necessary.
15        (3)  Each initial application shall be accompanied  by  a
16    financial  statement setting forth the financial condition of
17    the applicant and by a  statement  from  the  unit  of  local
18    government  having  zoning  jurisdiction  over the facility's
19    location stating that the location of the facility is not  in
20    violation of a zoning ordinance. An initial application for a
21    new  facility shall be accompanied by a permit as required by
22    the "Illinois Health  Facilities  Planning  Act".  After  the
23    application  is  approved,  the  applicant  shall  advise the
24    Department every 6 months of any changes in  the  information
25    originally provided in the application.
26        (4)  Other   information   necessary   to  determine  the
27    identity and qualifications of  an  applicant  to  operate  a
28    facility in accordance with this Act shall be included in the
29    application as required by the Department in regulations.
30    (Source: P.A. 86-663; 87-1102.)

31        Section 45.  The Emergency Medical Services (EMS) Systems
32    Act is amended by changing Section 32.5 as follows:
 
                            -22-               LRB9106074MWmb
 1        (210 ILCS 50/32.5)
 2        Sec.  32.5.  Freestanding Emergency Center; demonstration
 3    program.
 4        (a)  The Department shall issue  an  annual  Freestanding
 5    Emergency Center (FEC) license to any facility that:
 6             (1)  is  located:  (i)  in  a  municipality  with  a
 7        population of 60,000 or fewer inhabitants; (ii) either in
 8        a   municipality  that  has  a  hospital  that  has  been
 9        providing emergency services but is expected to close  by
10        the  end of 1997 or in a county with a population of more
11        than 350,000 but less  than  500,000  inhabitants;  (iii)
12        within 15 miles of the hospital that owns or controls the
13        FEC;  and  (iv)  within 10 miles of the Resource Hospital
14        affiliated with the FEC as part of the EMS System;
15             (2)  is wholly owned or controlled by  an  Associate
16        or Resource Hospital, but is not a part of the hospital's
17        physical plant;
18             (3)  meets  the standards for licensed FECs, adopted
19        by rule of the Department, including, but not limited to:
20                  (A)  facility design, specification, operation,
21             and maintenance standards;
22                  (B)  equipment standards; and
23                  (C)  the number and qualifications of emergency
24             medical  personnel  and  other  staff,  which   must
25             include  at  least  one  board  certified  emergency
26             physician present at the FEC 24 hours per day.
27             (4)  limits  its  participation  in  the  EMS System
28        strictly to receiving a limited number  of  BLS  runs  by
29        emergency   medical   vehicles   according  to  protocols
30        developed by  the  Resource  Hospital  within  the  FEC's
31        designated EMS System and approved by the Project Medical
32        Director and the Department;
33             (5)  provides   comprehensive   emergency  treatment
34        services,  as  defined  in  the  rules  adopted  by   the
 
                            -23-               LRB9106074MWmb
 1        Department  pursuant  to  the  Hospital Licensing Act, 24
 2        hours per day, on an outpatient basis;
 3             (6)  provides an ambulance  and  maintains  on  site
 4        ambulance  services  staffed with paramedics 24 hours per
 5        day;
 6             (7)  maintains   helicopter   landing   capabilities
 7        approved by appropriate State and federal authorities;
 8             (8)  complies with all  State  and  federal  patient
 9        rights  provisions,  including,  but  not limited to, the
10        Emergency Medical Treatment Act and the federal Emergency
11        Medical Treatment and Active Labor Act;
12             (9)  maintains a communications system that is fully
13        integrated with its Resource Hospital  within  the  FEC's
14        designated EMS System;
15             (10)  reports   to   the   Department   any  patient
16        transfers from the FEC to a hospital within 48  hours  of
17        the  transfer  plus  any  other  data  determined  to  be
18        relevant by the Department;
19             (11)  submits  to  the  Department,  on  a quarterly
20        basis,  the  FEC's  morbidity  and  mortality  rates  for
21        patients treated at the FEC and other data determined  to
22        be relevant by the Department;
23             (12)  does not describe itself or hold itself out to
24        the general public as a full service hospital or hospital
25        emergency  department  in  its  advertising  or marketing
26        activities;
27             (13)  complies with any other rules adopted  by  the
28        Department under this Act that relate to FECs;
29             (14)  passes  the  Department's  site inspection for
30        compliance with the FEC requirements of this Act;
31             (15)  (Blank); submits a copy of  a  certificate  of
32        need  or  other  permit  issued  by  the  Illinois Health
33        Facilities Planning Board indicating  that  the  facility
34        that  will  house  the  proposed  FEC complies with State
 
                            -24-               LRB9106074MWmb
 1        health  planning  laws;  provided,  however,   that   the
 2        Illinois  Health  Facilities  Planning  Board shall waive
 3        this certificate of need or permit  requirement  for  any
 4        proposed  FEC  that,  as  of  the  effective date of this
 5        amendatory Act of 1996, meets the criteria for  providing
 6        comprehensive emergency treatment services, as defined by
 7        the  rules  promulgated under the Hospital Licensing Act,
 8        but is not a licensed hospital;
 9             (16)  submits an application for designation  as  an
10        FEC  in a manner and form prescribed by the Department by
11        rule; and
12             (17)  pays the annual license fee as  determined  by
13        the Department by rule.
14        (b)  The Department shall:
15             (1)  annually  inspect  facilities  of  initial  FEC
16        applicants  and  licensed FECs, and issue annual licenses
17        to  or  annually  relicense   FECs   that   satisfy   the
18        Department's  licensure  requirements  as  set  forth  in
19        subsection (a);
20             (2)  suspend,  revoke, refuse to issue, or refuse to
21        renew the  license  of  any  FEC,  after  notice  and  an
22        opportunity for a hearing, when the Department finds that
23        the  FEC  has  failed  to  comply  with the standards and
24        requirements  of  the  Act  or  rules  adopted   by   the
25        Department under the Act;
26             (3)  issue an Emergency Suspension Order for any FEC
27        when  the  Director or his or her designee has determined
28        that  the  continued  operation  of  the  FEC  poses   an
29        immediate  and  serious  danger  to  the  public  health,
30        safety,  and welfare.  An opportunity for a hearing shall
31        be promptly initiated after an Emergency Suspension Order
32        has been issued; and
33             (4)  adopt  rules  as  needed  to   implement   this
34        Section.
 
                            -25-               LRB9106074MWmb
 1        (c)  The FEC demonstration program shall be conducted for
 2    an  initial  period  concluding on September 1, 1999.  If, by
 3    that date, the Department determines that  the  demonstration
 4    program is operating in a manner consistent with the purposes
 5    of  this  Act,  the  program  shall  continue  and  sunset on
 6    September 1, 2001.  The  Department  shall  submit  a  report
 7    concerning  the effectiveness of the demonstration program to
 8    the General Assembly by September 1, 2000.
 9        An FEC license issued  pursuant  to  this  Section  shall
10    expire upon the termination of the demonstration program.
11    (Source: P.A. 89-516, eff. 7-18-96; 90-67, eff. 7-8-97.)

12        Section  50.  The  Hospital  Licensing  Act is amended by
13    changing Section 4.5 as follows:

14        (210 ILCS 85/4.5)
15        Sec.  4.5.   Hospital  with  multiple  locations;  single
16    license.
17        (a)  A hospital located  in  a  county  with  fewer  than
18    3,000,000   inhabitants  may  apply  to  the  Department  for
19    approval  to  conduct  its  operations  from  more  than  one
20    location within the county under a single license.
21        (b)  The facilities or buildings at those locations  must
22    be  owned  or  operated  together  by a single corporation or
23    other legal entity serving as the licensee and must share:
24             (1)  a single board of directors with responsibility
25        for governance, including  financial  oversight  and  the
26        authority  to  designate  or  remove  the chief executive
27        officer;
28             (2)  a single medical staff accountable to the board
29        of directors and governed by  a  single  set  of  medical
30        staff  bylaws, rules, and regulations with responsibility
31        for the quality of the medical services; and
32             (3)  a single chief executive  officer,  accountable
 
                            -26-               LRB9106074MWmb
 1        to    the    board    of   directors,   with   management
 2        responsibility.
 3        (c)  Each hospital building or facility that  is  located
 4    on a site geographically separate from the campus or premises
 5    of  another  hospital  building  or  facility operated by the
 6    licensee must, at a minimum,  individually  comply  with  the
 7    Department's  hospital  licensing  requirements for emergency
 8    services.
 9        (d)  The  hospital  shall  submit  to  the  Department  a
10    comprehensive plan in  relation  to  the  waiver  or  waivers
11    requested  describing  the  services  and  operations of each
12    facility or building and how common  services  or  operations
13    will  be coordinated between the various locations.  With the
14    exception of items required by subsection (c), the Department
15    is authorized to waive compliance with the hospital licensing
16    requirements for specific buildings or  facilities,  provided
17    that  the  hospital  has  documented  which other building or
18    facility under its single license provides  that  service  or
19    operation,  and that doing so would not endanger the public's
20    health, safety, or welfare.  Nothing in this Section relieves
21    a hospital from the requirements  of  the  Health  Facilities
22    Planning Act.
23    (Source: P.A. 89-171, eff. 7-19-95.)

24        Section  55.  The Health Care Worker Self-Referral Act is
25    amended by changing Sections 5, 15, and 30 as follows:

26        (225 ILCS 47/5)
27        Sec.  5.   Legislative  intent.   The  General   Assembly
28    recognizes  that patient referrals by health care workers for
29    health services to an entity in which  the  referring  health
30    care   worker  has  an  investment  interest  may  present  a
31    potential conflict of interest.  The General  Assembly  finds
32    that   these  referral  practices  may  limit  or  completely
 
                            -27-               LRB9106074MWmb
 1    eliminate competitive alternatives in the health care market.
 2    In some instances, these referral practices  may  expand  and
 3    improve  care  or  may  make  services  available  which were
 4    previously unavailable.  They may  also  provide  lower  cost
 5    options  to  patients  or  increase  competition.  Generally,
 6    referral  practices  are  positive   occurrences.    However,
 7    self-referrals  may  result  in  over  utilization  of health
 8    services, increased overall costs of the health care systems,
 9    and may affect the quality of health care.
10        It is the intent  of  the  General  Assembly  to  provide
11    guidance  to health care workers regarding acceptable patient
12    referrals,  to  prohibit  patient   referrals   to   entities
13    providing  health services in which the referring health care
14    worker  has  an  investment  interest,  and  to  protect  the
15    citizens of Illinois from unnecessary and costly health  care
16    expenditures.
17        Recognizing  the  need for flexibility to quickly respond
18    to changes in the  delivery  of  health  services,  to  avoid
19    results  beyond  the  limitations  on  self referral provided
20    under this Act and  to  provide  minimal  disruption  to  the
21    appropriate  delivery of health care, the Illinois Department
22    of Public Health may adopt rules  Facilities  Planning  Board
23    shall  be  exclusively and solely authorized to implement and
24    interpret this Act through adopted rules.
25        The General Assembly recognizes that changes in  delivery
26    of  health  care  has  resulted  in  various methods by which
27    health care workers practice their professions.   It  is  not
28    the  intent  of  the  General  Assembly  to limit appropriate
29    delivery of  care,  nor  force  unnecessary  changes  in  the
30    structures  created by workers for the health and convenience
31    of their patients.
32    (Source: P.A. 87-1207.)

33        (225 ILCS 47/15)
 
                            -28-               LRB9106074MWmb
 1        Sec. 15.  Definitions.  In this Act:
 2        (a)  "Board" means: (1) until the effective date of  this
 3    amendatory  Act  of  the  91st  General  Assembly, the Health
 4    Facilities Planning Board; and (2) beginning on the effective
 5    date of this amendatory Act of the 91st General Assembly, the
 6    Illinois Department of Public Health.
 7        (b)  "Entity" means any  individual,  partnership,  firm,
 8    corporation,  or other business that provides health services
 9    but does not include an  individual  who  is  a  health  care
10    worker who provides professional services to an individual.
11        (c)  "Group  practice"  means a group of 2 or more health
12    care workers legally organized as a partnership, professional
13    corporation,  not-for-profit  corporation,  faculty  practice
14    plan or a similar association in which:
15             (1)  each health care worker  who  is  a  member  or
16        employee  or  an  independent  contractor  of  the  group
17        provides  substantially  the  full range of services that
18        the health  care  worker  routinely  provides,  including
19        consultation, diagnosis, or treatment, through the use of
20        office  space, facilities, equipment, or personnel of the
21        group;
22             (2)  the services of the  health  care  workers  are
23        provided  through  the  group,  and payments received for
24        health services are treated as receipts of the group; and
25             (3)  the overhead expenses and the income  from  the
26        practice are distributed by methods previously determined
27        by the group.
28        (d)  "Health  care  worker" means any individual licensed
29    under the laws of this  State  to  provide  health  services,
30    including  but  not  limited  to: dentists licensed under the
31    Illinois Dental  Practice  Act;  dental  hygienists  licensed
32    under  the  Illinois Dental Practice Act; nurses and advanced
33    practice nurses  licensed  under  the  Nursing  and  Advanced
34    Practice  Nursing Act; occupational therapists licensed under
 
                            -29-               LRB9106074MWmb
 1    the Illinois Occupational Therapy Practice Act;  optometrists
 2    licensed  under the Illinois Optometric Practice Act of 1987;
 3    pharmacists licensed under the Pharmacy Practice Act of 1987;
 4    physical therapists  licensed  under  the  Illinois  Physical
 5    Therapy  Act;  physicians licensed under the Medical Practice
 6    Act  of  1987;  physician  assistants  licensed   under   the
 7    Physician   Assistant   Practice  Act  of  1987;  podiatrists
 8    licensed under the Podiatric Medical Practice  Act  of  1987;
 9    clinical    psychologists   licensed   under   the   Clinical
10    Psychologist Licensing Act; clinical social workers  licensed
11    under  the Clinical Social Work and Social Work Practice Act;
12    speech-language pathologists and audiologists licensed  under
13    the Illinois Speech-Language Pathology and Audiology Practice
14    Act;  or  hearing  instrument  dispensers  licensed under the
15    Hearing Instrument Consumer Protection Act, or any  of  their
16    successor Acts.
17        (e)  "Health  services"  means health care procedures and
18    services provided by or through a health care worker.
19        (f)  "Immediate  family  member"  means  a  health   care
20    worker's spouse, child, child's spouse, or a parent.
21        (g)  "Investment   interest"  means  an  equity  or  debt
22    security issued by an entity, including, without  limitation,
23    shares of stock in a corporation, units or other interests in
24    a  partnership,  bonds,  debentures,  notes,  or other equity
25    interests or debt instruments except that investment interest
26    for purposes of Section 20 does not  include  interest  in  a
27    hospital licensed under the laws of the State of Illinois.
28        (h)  "Investor" means an individual or entity directly or
29    indirectly   owning   a  legal  or  beneficial  ownership  or
30    investment interest, (such as  through  an  immediate  family
31    member, trust, or another entity related to the investor).
32        (i)  "Office   practice"   includes   the   facility   or
33    facilities  at  which  a  health  care  worker, on an ongoing
34    basis, provides or supervises the provision  of  professional
 
                            -30-               LRB9106074MWmb
 1    health services to individuals.
 2        (j)  "Referral"  means  any  referral  of  a  patient for
 3    health services, including, without limitation:
 4             (1)  The forwarding of a patient by one health  care
 5        worker  to  another  health  care  worker or to an entity
 6        outside the health care worker's office practice or group
 7        practice that provides health services.
 8             (2)  The request or establishment by a  health  care
 9        worker of a plan of care outside the health care worker's
10        office  practice  or  group  practice  that  includes the
11        provision of any health services.
12    (Source: P.A. 89-72, eff. 12-31-95; 90-742, eff. 8-13-98.)

13        (225 ILCS 47/30)
14        Sec. 30.  Rulemaking.   The  Health  Facilities  Planning
15    Board  shall  adopt rules to exclusively and solely implement
16    the provisions of this  Act  pursuant  to  rules  adopted  in
17    accordance  with  the  Illinois  Administrative Procedure Act
18    concerning, but not limited to:
19             (a)  Standards and procedures for the administration
20        of this Act.
21             (b)  Procedures and criteria for exceptions from the
22        prohibitions set forth in Section 20.
23             (c)  Procedures   and   criteria   for   determining
24        practical  compliance  with  the  needs  and  alternative
25        investor criteria in Section 20.
26             (d)  Procedures and criteria for determining when  a
27        written request for an opinion set forth in Section 20 is
28        complete.
29             (e)  Procedures  and  criteria  for  advising health
30        care  workers  of  the  applicability  of  this  Act   to
31        practices pursuant to written requests.
32        Rules  adopted  under  this  Act by the Health Facilities
33    Planning Board  shall  remain  in  effect  until  amended  or
 
                            -31-               LRB9106074MWmb
 1    repealed by the Department.
 2    (Source: P.A. 87-1207.)

 3        Section 60.  The Nurse Agency Licensing Act is amended by
 4    changing Section 3 as follows:

 5        (225 ILCS 510/3) (from Ch. 111, par. 953)
 6        Sec. 3.  Definitions.  As used in this Act:
 7        (a)  "Certified nurse aide" means an individual certified
 8    as  defined in Section 3-206 of the Nursing Home Care Act, as
 9    now or hereafter amended.
10        (b)  "Department" means the Department of Labor.
11        (c)  "Director" means the Director of Labor.
12        (d)  "Health care  facilities"  means  and  includes  the
13    following facilities and organizations:
14             (1)  An   ambulatory   surgical   treatment   center
15        required  to  be  licensed  pursuant  to  the  Ambulatory
16        Surgical Treatment Center Act;
17             (2)  An  institution,  place,  building,  or  agency
18        required   to   be  licensed  pursuant  to  the  Hospital
19        Licensing Act;
20             (3)  Any  institution  required   to   be   licensed
21        pursuant to 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; and
26             (5)  Kidney disease treatment centers,  including  a
27        free-standing  hemodialysis  unit. "Health care facility"
28        is defined  as  in  Section  3  of  the  Illinois  Health
29        Facilities Planning Act, as now or hereafter amended.
30        (e)  "Licensee"   means   any  nursing  agency  which  is
31    properly licensed under this Act.
32        (f)  "Nurse" means  a  registered  nurse  or  a  licensed



 
                            -32-               LRB9106074MWmb
 1    practical  nurse  as  defined  in  the  Nursing  and Advanced
 2    Practice Nursing Act.
 3        (g)  "Nurse   agency"   means   any   individual,   firm,
 4    corporation, partnership or other legal entity that  employs,
 5    assigns or refers nurses or certified nurse aides to a health
 6    care  facility  for  a fee.  The term "nurse agency" includes
 7    nurses registries.  The term "nurse agency" does not  include
 8    services  provided  by  home  health  agencies  licensed  and
 9    operated  under  the  Home  Health  Agency Licensing Act or a
10    licensed or certified individual who provides his or her  own
11    services as a regular employee of a health care facility, nor
12    does   it  apply  to  a  health  care  facility's  organizing
13    nonsalaried  employees  to  provide  services  only  in  that
14    facility.
15    (Source: P.A. 90-742, eff. 8-13-98.)

16        Section 65.  The Illinois Public Aid Code is  amended  by
17    changing Section 5-5.01a as follows:

18        (305 ILCS 5/5-5.01a)
19        Sec.  5-5.01a. Supportive living facilities demonstration
20    project.  For the purpose of  studying  alternative  settings
21    for  long term care, the Department may establish and provide
22    oversight  for  a  demonstration  project  to  determine  the
23    viability  of  supportive  living  facilities  that  seek  to
24    promote  resident   independence,   dignity,   respect,   and
25    well-being in the most cost-effective manner.
26        A  supportive  living  facility is either a free-standing
27    facility or a distinct physical and operational entity within
28    a nursing facility.  A supportive living facility  integrates
29    housing  with  health, personal care, and supportive services
30    and is a designated setting that offers residents  their  own
31    separate, private, and distinct living units.
32        Demonstration  sites  shall be selected by the Department
 
                            -33-               LRB9106074MWmb
 1    based upon criteria that may include the need for services in
 2    a geographic area,  the  availability  of  funding,  and  the
 3    site's ability to meet the standards.
 4        The Department may adopt rules to implement this Section.
 5    Rules  that  establish or modify the services, standards, and
 6    conditions for participation  in  the  demonstration  project
 7    shall  be  adopted by the Department in consultation with the
 8    Department  on  Aging,  the  Department   of   Rehabilitation
 9    Services,   and   the   Department   of   Mental  Health  and
10    Developmental Disabilities (or their successor agencies).
11        Facilities or distinct  parts  of  facilities  which  are
12    selected  as  supportive  living  facilities  and are in good
13    standing with the Department's  rules  are  exempt  from  the
14    provisions  of  the  Nursing  Home  Care Act and the Illinois
15    Health Facilities Planning Act.
16    (Source: P.A. 89-499, eff. 6-28-96.)

17        (405 ILCS 25/4.03 rep.)
18        Section  70.  The  Specialized  Living  Centers  Act   is
19    amended by repealing Section 4.03.

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.

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