State of Illinois
92nd General Assembly
Legislation

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92_SB1720

 
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 1        AN ACT concerning health care.

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

 4        Section  5.   The  Illinois  Health Finance Reform Act is
 5    amended by changing Section 4-2 as follows:

 6        (20 ILCS 2215/4-2) (from Ch. 111 1/2, par. 6504-2)
 7        Sec. 4-2.  Powers and duties.
 8        (a)  The Illinois Health Care  Cost  Containment  Council
 9    may   enter   into   any   agreement  with  any  corporation,
10    association or other entity it deems appropriate to undertake
11    the process described in this Article for the compilation and
12    analysis of data collected by the Council and to  conduct  or
13    contract  for studies on health-related questions carried out
14    in pursuance of the purposes of this Article.  The  agreement
15    may  provide  for  the  corporation, association or entity to
16    prepare and distribute or make available data to health  care
17    providers,   health  care  subscribers,  third-party  payors,
18    government and the general public,  in  accordance  with  the
19    rules  of  confidentiality  and  review to be developed under
20    this Act.
21        (b)  The input data collected by  and  furnished  to  the
22    Council  or  designated  corporation,  association  or entity
23    pursuant to this Section shall not be a public  record  under
24    the Illinois Freedom of Information Act.  It is the intent of
25    this  Act  and  of the regulations written pursuant to it  to
26    protect the confidentiality of individual patient information
27    and  the  proprietary  information  of  commercial  insurance
28    carriers  and  health  care  providers.   Data  specified  in
29    subsections (e) and (e-5) shall be  released  on  a  hospital
30    specific  and  licensed  ambulatory surgical treatment center
31    specific basis to facilitate comparisons among hospitals  and
 
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 1    licensed ambulatory surgical treatment centers by purchasers.
 2        (c)  The  Council shall require the Departments of Public
 3    Health and Public Aid and hospitals located in the  State  to
 4    assist  the Council in gathering and submitting the following
 5    hospital-specific financial information, and the  Council  is
 6    authorized to share this data with both Departments to reduce
 7    the   burden   on   hospitals   by  avoiding  duplicate  data
 8    collection:

 9    OPERATING REVENUES
10        (1)  Net patient service revenue
11        (2)  Other revenue
12        (3)  Total operating revenue

13    OPERATING EXPENSES
14        (4)  Bad debt expense
15        (5)  Total operating expenses

16    NON-OPERATING GAINS/LOSSES
17        (6)  Total non-operating gains
18        (7)  Total non-operating losses

19    PATIENT CARE REVENUES
20        (8)  Gross inpatient revenue
21        (9)  Gross outpatient revenue
22        (10)  Other Patient care revenue
23        (11)  Total patient revenue
24        (12)  Total gross patient care revenue
25        (13)  Medicare gross revenue
26        (14)  Medicaid gross revenue
27        (15)  Total other gross revenue

28    DEDUCTIONS FROM REVENUE
29        (16)  Charity care
30        (17)  Medicare allowance
31        (18)  Medicaid allowance
32        (19)  Other contractual allowances
 
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 1        (20)  Other allowances
 2        (21)  Total Deductions

 3    ASSETS
 4        (22)  Operating cash and short-term investments
 5        (23)  Estimated patient accounts receivable
 6        (24)  Other current assets
 7        (25)  Total current assets
 8        (26)  Total other assets
 9        (27)  Total Assets

10    LIABILITIES AND FUND BALANCES
11        (28)  Total current liabilities
12        (29)  Long Term Debt
13        (30)  Other liabilities
14        (31)  Total liabilities
15        (32)  Total liabilities and fund balances
16        All financial data collected by the Council from publicly
17    available sources such as  the  HCFA  is  releasable  by  the
18    Council on a hospital specific basis when appropriate.
19        (d)  Uniform     Provider    Utilization    and    Charge
20    Information.  The Council shall require that:
21             (1)  Hospitals licensed to operate in the  State  of
22        Illinois  adopt  a  uniform system for submitting patient
23        charges  for  payment  from  public  and  private  payors
24        effective January 1, 1985.  This system  shall  be  based
25        upon  adoption  of  the  uniform  hospital  billing  form
26        (UB-92)  or  its successor form developed by the National
27        Uniform Billing Committee.
28             (2)  (Blank).
29             (3)  The  Department  of   Insurance   require   all
30        third-party   payors,   including  but  not  limited  to,
31        licensed   insurers,   medical   and   hospital   service
32        corporations,  health  maintenance   organizations,   and
33        self-funded  employee health plans, to accept the uniform
 
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 1        billing  form,  without  attachment   as   submitted   by
 2        hospitals  pursuant  to  paragraph  (1) of subsection (d)
 3        above, effective  January  1,  1985;  provided,  however,
 4        nothing  shall  prevent  all such third party payors from
 5        requesting additional information necessary to  determine
 6        eligibility  for  benefits or liability for reimbursement
 7        for services provided.
 8        (e)  The  Council,  in   cooperation   with   the   State
 9    Departments  of  Public  Aid,  Insurance,  and Public Health,
10    shall establish a system for the collection of the  following
11    information  from  hospitals utilizing the raw data available
12    on the uniform billing forms.  Such data  shall  include  the
13    following  elements  and  other  elements  contained  on  the
14    uniform  billing  form  or  its  successor form determined as
15    necessary by the Council:
16        (1)  Patient date of birth
17        (2)  Patient sex
18        (3)  Patient zip code
19        (4)  Third-party coverage
20        (5)  Date of admission
21        (6)  Source of admission
22        (7)  Type of admission
23        (8)  Discharge date
24        (9)  Principal and up to 8 other diagnoses
25        (10)  Principal procedure and date
26        (11)  Patient status
27        (12)  Other procedures and dates
28        (13)  Total charges and components of those charges
29        (14)  Attending and consulting  physician  identification
30    numbers
31        (15)  Hospital identification number
32        (16)  An  alphanumeric number based on the information to
33    identify the payor
34        (17)  Principal source of payment.
 
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 1        (e-5)  The Council, in cooperation with the Department of
 2    Public Aid, the Department of Insurance, and  the  Department
 3    of Public Health, shall establish a system for the collection
 4    of  the  following  information  for  each outpatient surgery
 5    performed  at  hospitals  and  licensed  ambulatory  surgical
 6    treatment centers using the raw data available on  outpatient
 7    billing  forms submitted by hospitals and licensed ambulatory
 8    surgical treatment centers to payors.  The data must  include
 9    the  following  elements,  if available on the billing forms,
10    and other elements contained on the billing  forms  that  the
11    Council determines are necessary:
12             (1)  patient date of birth;
13             (2)  patient sex;
14             (3)  patient zip code;
15             (4)  third-party coverage;
16             (5)  date of admission;
17             (6)  source of admission;
18             (7)  type of admission;
19             (8)  discharge date;
20             (9)  principal   diagnosis   and   up   to  8  other
21        diagnoses;
22             (10)  principal  procedure  and  the  date  of   the
23        procedure;
24             (11)  patient status;
25             (12)  other   procedures  and  the  dates  of  those
26        procedures;
27             (13)  attending     and     consulting     physician
28        identification numbers;
29             (14)  hospital  or  licensed   ambulatory   surgical
30        treatment center identification number;
31             (15)  an    alphanumeric   number   based   on   the
32        information needed to identify the payor; and
33             (16)  principal source of payment.
34        (f)  Extracts of the UB-92 transactions shall be prepared
 
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 1    by hospitals according  to  regulations  promulgated  by  the
 2    Council  and submitted in electronic format to the Council or
 3    the corporation, association  or  entity  designated  by  the
 4    Council.
 5        For  hospitals  unable  to  submit extracts in electronic
 6    format, the Council shall determine an alternate  method  for
 7    submission  of data.  Such extract reporting systems shall be
 8    in operation before January 1, 1987; however, the Council may
 9    grant time extensions to individual hospital.
10        (f-5)  Extracts of the billing forms shall be prepared by
11    licensed ambulatory surgical treatment centers  according  to
12    rules  adopted by the Council and submitted to the Council or
13    a corporation,  association,  or  entity  designated  by  the
14    Council.  Electronic  submissions  shall  be encouraged.  For
15    licensed ambulatory  surgical  treatment  centers  unable  to
16    submit  extracts  in  an  electronic  format the Council must
17    determine an alternate method for submission of data.
18        (g)  Under no circumstances shall patient name and social
19    security number appear on the extracts.
20        (h)  Hospitals and licensed ambulatory surgical treatment
21    centers shall be assigned a standard identification number by
22    the Council to be used in the submission of all data.
23        (i)  The Council shall collect a  100%  inpatient  sample
24    from  hospitals  annually.  The  Council  shall  require each
25    hospital in the State  to  submit  the  UB-92  data  extracts
26    required  in  subsection  (e)  to  the  Council,  except that
27    hospitals with fewer than 50 beds  may  be  exempted  by  the
28    Council  from  the  filing  requirements if they prove to the
29    Council's satisfaction that  the  requirements  would  impose
30    undue  economic  hardship  and if the Council determines that
31    the data submitted from these hospitals are not essential  to
32    its data base and its concomitant health care cost comparison
33    efforts.
34        (i-5)  The  Council shall collect up to a 100% outpatient
 
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 1    sample  annually  from  hospitals  and  licensed   ambulatory
 2    surgical  treatment  centers.  The Council shall require each
 3    hospital and licensed ambulatory surgical treatment center in
 4    the  State  to  submit  the  data  extracts  required   under
 5    subsection  (e-5)  to  the Council, except that hospitals and
 6    licensed  ambulatory  surgical  treatment  centers   may   be
 7    exempted  by  the Council from the filing requirements if the
 8    hospitals or licensed ambulatory surgical  treatment  centers
 9    prove  to  the  Council's  satisfaction that the requirements
10    would impose undue  economic  hardship  and  if  the  Council
11    determines  that  the data submitted from those hospitals and
12    licensed  ambulatory  surgical  treatment  centers  are   not
13    essential  to  the  Council's  database  and  its concomitant
14    health care comparison efforts.
15        (i-10)  The outpatient data shall  be  collected  by  the
16    Council  on  a phase-in and trial basis for a one-year period
17    beginning on January 1, 2001.  The  Council  shall  implement
18    outpatient  data  collection for reporting purposes beginning
19    on January 1, 2002.
20        (j)  The information submitted to the Council pursuant to
21    subsections (e) and (e-5) shall be reported for each  primary
22    payor   category,   including   Medicare,   Medicaid,   other
23    government  programs,  private  insurance, health maintenance
24    organizations,  self-insured,  private  pay   patients,   and
25    others.   Preferred provider organization reimbursement shall
26    also be reported for each primary third party payor category.
27        (k)  The  Council  shall  require  and   the   designated
28    corporation,  association  or  entity,  if  applicable, shall
29    prepare quarterly basic reports in the  aggregate  on  health
30    care  cost  and  utilization trends in Illinois.  The Council
31    shall provide these reports  to  the  public,  if  requested.
32    These  shall  include,  but  not  be  limited to, comparative
33    information on average charges, total  and  ancillary  charge
34    components,   length   of   stay  on  diagnosis-specific  and
 
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 1    procedure specific cases, and number of discharges,  compiled
 2    in  aggregate  by  hospital  and licensed ambulatory surgical
 3    treatment  center,  by  diagnosis,  and  by   primary   payor
 4    category.
 5        (l)  The   Council   shall,  from  information  submitted
 6    pursuant to subsection (e), prepare an annual report  in  the
 7    aggregate by hospital containing the following:
 8             (1)  the  ratio  of  caesarean section deliveries to
 9        total deliveries;
10             (2)  the average length of  stay  for  patients  who
11        undergo caesarean sections;
12             (3)  the average total charges for patients who have
13        normal deliveries without any significant complications;
14             (4)  the  average  total  charges  for  patients who
15        deliver by caesarean section.
16    The Council shall provide  this  report  to  the  public,  if
17    requested.
18        (l-5)  (Blank).
19        (m)  Prior  to  the  release  or  dissemination  of these
20    reports, the Council  or  the  designated  corporation  shall
21    permit  providers  the  opportunity to verify the accuracy of
22    any information pertaining to the  provider.   The  providers
23    may  submit  to  the Council any corrections or errors in the
24    compilation of the data  with  any  supporting  evidence  and
25    documents   the   providers   may  submit.   The  Council  or
26    corporation shall correct data  found  to  be  in  error  and
27    include  additional  commentary  as requested by the provider
28    for major deviations in the charges from the average charges.
29    For purposes of this  subsection  (m),  "providers"  includes
30    physicians  licensed  to  practice  medicine  in  all  of its
31    branches.
32        (n)  In addition to  the  reports  indicated  above,  the
33    Council  shall  respond to requests by agencies of government
34    and organizations in the private sector  for  data  products,
 
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 1    special  studies  and  analysis of data collected pursuant to
 2    this Section.  Such reports shall be undertaken only  by  the
 3    agreement  of  a  majority  of the members of the Council who
 4    shall designate the form in which the  information  shall  be
 5    made  available.  The Council or the corporation, association
 6    or  entity  in  consultation  with  the  Council  shall  also
 7    determine a fee to be charged to  the  requesting  agency  or
 8    private  sector organization to cover the direct and indirect
 9    costs for producing such a report, and shall permit  affected
10    providers  the  rights  to  review the accuracy of the report
11    before it is released.  Such reports  shall not be subject to
12    The Freedom of Information Act.
13        (o)  The Council shall require any pharmaceutical company
14    that provides prescription drugs in Illinois to  disclose  to
15    the  Council,  in  a  manner  and  fashion  designated by the
16    Council  by  rule,  all  prescription  drug  advertising  and
17    promotion costs. The Council must then conduct a cost/benefit
18    analysis to determine  (i)  the  impact  of  these  costs  on
19    prescription  drug  prices  and  (ii)  the impact on Illinois
20    residents  of  any  increase  of  the  prices  and  costs  of
21    prescription drugs that is attributable  to  the  advertising
22    and promotional activities.
23    (Source: P.A. 91-756, eff. 6-2-00.)

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