State of Illinois
91st General Assembly

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]

[ Introduced ]


SB1278 Engrossed                               LRB9109444JMpr

 1        AN ACT to amend the Illinois Health  Facilities  Planning
 2    Act by changing Sections 3 and 5.

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

 5        Section 5.  The Illinois Health Facilities  Planning  Act
 6    is amended by changing Sections 3 and 5 as follows:

 7        (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
 8        Sec. 3.  As used in this Act:
 9        "Health care facilities" means and includes the following
10    facilities and organizations:
11             1.  An ambulatory surgical treatment center required
12        to  be  licensed  pursuant  to  the  Ambulatory  Surgical
13        Treatment Center Act;
14             2.  An   institution,  place,  building,  or  agency
15        required  to  be  licensed  pursuant  to   the   Hospital
16        Licensing Act;
17             3.  Any institution required to be licensed pursuant
18        to the Nursing Home Care Act;
19             4.  Hospitals,  nursing  homes,  ambulatory surgical
20        treatment centers, or kidney  disease  treatment  centers
21        maintained  by  the  State  or  any  department or agency
22        thereof; and
23             5.  Kidney disease treatment  centers,  including  a
24        free-standing hemodialysis unit; and.
25             6.  An  institution,  place,  building, or room used
26        for the performance  of  outpatient  surgical  procedures
27        that  is acquired, constructed, or leased by or on behalf
28        of a person or an affiliate of a person that is a foreign
29        hospital or foreign ambulatory surgery center.
30        No federally owned  facility  shall  be  subject  to  the
31    provisions  of  this  Act,  nor  facilities  used  solely for

SB1278 Engrossed            -2-                LRB9109444JMpr
 1    healing by prayer or spiritual means.
 2        No facility  licensed  under  the  Supportive  Residences
 3    Licensing Act shall be subject to the provisions of this Act.
 4        A  facility  designated  as  a supportive living facility
 5    that is in  good  standing  with  the  demonstration  project
 6    established  under Section 5-5.01a of the Illinois Public Aid
 7    Code shall not be subject to the provisions of this Act.
 8        This Act does not apply  to  facilities  granted  waivers
 9    under Section 3-102.2 of the Nursing Home Care Act.  However,
10    if  a  demonstration  project  under  that  Act applies for a
11    certificate of need to convert  to  a  nursing  facility,  it
12    shall meet the licensure and certificate of need requirements
13    in effect as of the date of application.
14        With  the  exception  of  those  health  care  facilities
15    specifically  included  in  this Section, nothing in this Act
16    shall be intended to include facilities operated as a part of
17    the practice of a physician or  other  licensed  health  care
18    professional,  whether  practicing in his individual capacity
19    or within the legal structure of any partnership, medical  or
20    professional   corporation,   or  unincorporated  medical  or
21    professional group. Further, this  Act  shall  not  apply  to
22    physicians  or  other  licensed  health  care  professional's
23    practices  where  such practices are carried out in a portion
24    of a health care facility under  contract  with  such  health
25    care facility by a physician or by other licensed health care
26    professionals,  whether practicing in his individual capacity
27    or within the legal structure of any partnership, medical  or
28    professional   corporation,   or  unincorporated  medical  or
29    professional groups.  This Act shall apply to construction or
30    modification  and  to  establishment  by  such  health   care
31    facility  of  such  contracted  portion  which  is subject to
32    facility licensing requirements, irrespective  of  the  party
33    responsible   for   such   action   or   attendant  financial
34    obligation.
SB1278 Engrossed            -3-                LRB9109444JMpr
 1        "Person" means any one or  more  natural  persons,  legal
 2    entities,  governmental  bodies  other  than  federal, or any
 3    combination thereof.
 4        "Consumer" means any person other than a person (a) whose
 5    major  occupation  currently  involves  or   whose   official
 6    capacity   within   the  last  12  months  has  involved  the
 7    providing, administering or financing of any type  of  health
 8    care  facility,  (b) who is engaged in health research or the
 9    teaching of health, (c) who has a material financial interest
10    in any activity which involves the  providing,  administering
11    or  financing of any type of health care facility, or (d) who
12    is or ever has been a member of the immediate family  of  the
13    person defined by (a), (b), or (c).
14        "State Board" means the Health Facilities Planning Board.
15        "Construction  or  modification" means the establishment,
16    erection,     building,      alteration,      reconstruction,
17    modernization,   improvement,   extension,   discontinuation,
18    change  of ownership, of or by a health care facility, or the
19    purchase or acquisition by or through a health care  facility
20    of   equipment  or  service  for  diagnostic  or  therapeutic
21    purposes or for facility administration or operation, or  any
22    capital  expenditure  made  by  or on behalf of a health care
23    facility which exceeds the capital expenditure minimum.
24        "Establish" means  the  construction  of  a  health  care
25    facility  or  the  replacement  of  an  existing  facility on
26    another site.
27        "Major medical equipment" means medical  equipment  which
28    is  used  for  the  provision  of  medical  and  other health
29    services and which costs in excess of the capital expenditure
30    minimum, except that  such  term  does  not  include  medical
31    equipment  acquired  by or on behalf of a clinical laboratory
32    to provide  clinical  laboratory  services  if  the  clinical
33    laboratory  is  independent  of  a  physician's  office and a
34    hospital and it has been determined under Title XVIII of  the
SB1278 Engrossed            -4-                LRB9109444JMpr
 1    Social  Security  Act  to meet the requirements of paragraphs
 2    (10) and (11) of Section 1861(s) of such Act.  In determining
 3    whether medical equipment  has  a  value  in  excess  of  the
 4    capital  expenditure  minimum, the value of studies, surveys,
 5    designs, plans, working drawings, specifications,  and  other
 6    activities  essential  to  the  acquisition of such equipment
 7    shall be included.
 8        "Capital Expenditure" means an expenditure:  (A) made  by
 9    or on behalf of a health care facility (as such a facility is
10    defined  in this Act); and (B) which under generally accepted
11    accounting  principles  is  not  properly  chargeable  as  an
12    expense of operation and maintenance, or is made to obtain by
13    lease or comparable arrangement any facility or part  thereof
14    or  any  equipment  for a facility or part; and which exceeds
15    the capital expenditure minimum.
16        For the purpose  of  this  paragraph,  the  cost  of  any
17    studies,   surveys,   designs,   plans,   working   drawings,
18    specifications,   and   other  activities  essential  to  the
19    acquisition, improvement, expansion, or  replacement  of  any
20    plant  or  equipment  with respect to which an expenditure is
21    made shall be included in  determining  if  such  expenditure
22    exceeds   the  capital  expenditures  minimum.  Donations  of
23    equipment or facilities to a health care  facility  which  if
24    acquired directly by such facility would be subject to review
25    under  this Act shall be considered capital expenditures, and
26    a transfer of equipment or  facilities  for  less  than  fair
27    market  value  shall  be considered a capital expenditure for
28    purposes of this Act  if  a  transfer  of  the  equipment  or
29    facilities at fair market value would be subject to review.
30        "Capital  expenditure minimum" means $1,000,000 for major
31    medical  equipment  and  $2,000,000  for  all  other  capital
32    expenditures, both of which shall  be  annually  adjusted  to
33    reflect the increase in construction costs due to inflation.
34        "Areawide"  means a major area of the State delineated on
SB1278 Engrossed            -5-                LRB9109444JMpr
 1    a geographic, demographic, and functional  basis  for  health
 2    planning  and  for health service and having within it one or
 3    more local areas for health planning and health service.  The
 4    term "region", as contrasted with the term  "subregion",  and
 5    the  word  "area"  may  be  used  synonymously  with the term
 6    "areawide".
 7        "Local" means a subarea of a delineated major  area  that
 8    on  a  geographic,  demographic,  and functional basis may be
 9    considered  to  be  part  of  such  major  area.   The   term
10    "subregion" may be used synonymously with the term "local".
11        "Areawide health planning organization" or "Comprehensive
12    health planning organization" means the health systems agency
13    designated  by  the Secretary, Department of Health and Human
14    Services or any successor agency.
15        "Local health planning organization"  means  those  local
16    health  planning organizations that are designated as such by
17    the areawide health planning organization of the  appropriate
18    area.
19        "Physician"  means  a  person  licensed  to  practice  in
20    accordance with the Medical Practice Act of 1987, as amended.
21        "Licensed   health  care  professional"  means  a  person
22    licensed to practice  a  health  profession  under  pertinent
23    licensing statutes of the State of Illinois.
24        "Director" means the  Director of the Illinois Department
25    of Public Health.
26        "Agency" means the Illinois Department of Public Health.
27        "Comprehensive  health  planning"  means  health planning
28    concerned with  the  total  population  and  all  health  and
29    associated  problems that affect the well-being of people and
30    that encompasses health services, health manpower, and health
31    facilities; and the coordination among these and  with  those
32    social,  economic,  and  environmental  factors  that  affect
33    health.
34        "Alternative  health  care  model"  means  a  facility or
SB1278 Engrossed            -6-                LRB9109444JMpr
 1    program authorized under the Alternative Health Care Delivery
 2    Act.
 3        "Foreign hospital" or "foreign ambulatory surgery center"
 4    means a person that is both (i) licensed as a hospital or  as
 5    an  ambulatory surgery center under the laws of another State
 6    or that qualifies as a  hospital  or  an  ambulatory  surgery
 7    center  under  regulations  adopted  pursuant  to  the Social
 8    Security Act and  (ii)  not  licensed  under  the  Ambulatory
 9    Surgical  Treatment  Act,  the Hospital Licensing Act, or the
10    Nursing Home Care Act.
11    (Source: P.A. 89-499, eff.  6-28-96;  89-530,  eff.  7-19-96;
12    90-14, eff. 7-1-97.)

13        (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
14        Sec.  5.   After  effective dates set by the State Board,
15    no person shall construct, modify or establish a health  care
16    facility  or  acquire  major  medical equipment without first
17    obtaining a permit or exemption from  the  State  Board.  The
18    State  Board shall not delegate to the Executive Secretary of
19    the State Board or any other person or entity  the  authority
20    to   grant  permits  or  exemptions  whenever  the  Executive
21    Secretary or other person or  entity  would  be  required  to
22    exercise  any  discretion  affecting  the decision to grant a
23    permit or exemption.  The State  Board  shall  set  effective
24    dates applicable to all or to each classification or category
25    of  health care facilities and applicable to all or each type
26    of transaction  for  which  a  permit  is  required.  Varying
27    effective  dates  may  be set, providing the date or dates so
28    set shall apply uniformly statewide.
29        Notwithstanding any effective dates established  by  this
30    Act  or  by  the  State Board, no person shall be required to
31    obtain a permit for any purpose  under  this  Act  until  the
32    State  health facilities plan referred to in paragraph (4) of
33    Section 12 of this Act has been approved and adopted  by  the
SB1278 Engrossed            -7-                LRB9109444JMpr
 1    State  Board  subsequent  to public hearings having been held
 2    thereon.
 3        A permit or exemption shall  be  obtained  prior  to  the
 4    acquisition of major medical equipment or to the construction
 5    or modification of a health care facility which:
 6             (a)  requires  a total capital expenditure in excess
 7        of the capital expenditure minimum; or
 8             (b)  substantially changes the scope or changes  the
 9        functional operation of the facility; or
10             (c)  changes  the  bed  capacity  of  a  health care
11        facility by increasing the total number  of  beds  or  by
12        distributing  beds among various categories of service or
13        by relocating beds from one physical facility or site  to
14        another  by  more  than 10 beds or more than 10% of total
15        bed capacity as defined by the State Board, whichever  is
16        less, over a 2 year period.
17        An  institution,  place,  building,  or room used for the
18    performance of outpatient surgical procedures  shall  not  be
19    acquired, constructed, modified, or leased by or on behalf of
20    a  person  or  an  affiliate  of  a  person that is a foreign
21    hospital or a foreign ambulatory surgery center without first
22    obtaining a permit from the State Board.
23        A permit shall be valid only for the defined construction
24    or modifications,  site,  amount  and  person  named  in  the
25    application  for such permit and shall not be transferable or
26    assignable. A permit shall be valid until such  time  as  the
27    project  has  been completed, provided that (a) obligation of
28    the project occurs within 12 months following issuance of the
29    permit except for major construction projects such obligation
30    must occur within 18 months following issuance of the permit;
31    and (b) the project commences and proceeds to completion with
32    due diligence. Major construction projects, for the  purposes
33    of  this  Act, shall include but are not limited to: projects
34    for the construction of new buildings; additions to  existing
SB1278 Engrossed            -8-                LRB9109444JMpr
 1    facilities; modernization projects whose cost is in excess of
 2    $1,000,000  or  10%  of  the  facilities'  operating revenue,
 3    whichever is less; and such other projects as the State Board
 4    shall define and prescribe pursuant to this  Act.  The  State
 5    Board may extend the obligation period upon a showing of good
 6    cause  by  the permit holder.  Permits for projects that have
 7    not been obligated within the  prescribed  obligation  period
 8    shall expire on the last day of that period.
 9        Persons  who  otherwise  would  be  required  to obtain a
10    permit shall be exempt from such  requirement  if  the  State
11    Board  finds that with respect to establishing a new facility
12    or  construction   of   new   buildings   or   additions   or
13    modifications  to  an  existing  facility,  final  plans  and
14    specifications  for  such work have prior to October 1, 1974,
15    been submitted to and approved by the  Department  of  Public
16    Health  in  accordance  with  the  requirements of applicable
17    laws.  Such exemptions shall be null and void after  December
18    31,  1979  unless  binding construction contracts were signed
19    prior  to  December  1,  1979  and  unless  construction  has
20    commenced prior to December 31, 1979.  Such exemptions  shall
21    be  valid  until  such time as the project has been completed
22    provided that the project proceeds  to  completion  with  due
23    diligence.
24        The  acquisition by any person of major medical equipment
25    that will not be  owned  by  or  located  in  a  health  care
26    facility  and  that  will  not be used to provide services to
27    inpatients of a health care facility  shall  be  exempt  from
28    review  provided  that  a  notice is filed in accordance with
29    exemption requirements.
30    (Source: P.A. 88-18.)

[ Top ]