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1 | AN ACT concerning health facilities.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Health Facilities Planning Act is | ||||||
5 | amended by changing Section 3 and by adding Section 8.5 as | ||||||
6 | follows:
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7 | (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
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8 | (Section scheduled to be repealed on July 1, 2008)
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9 | Sec. 3. Definitions. As used in this Act:
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10 | "Health care facilities" means and includes
the following | ||||||
11 | facilities and organizations:
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12 | 1. An ambulatory surgical treatment center required to | ||||||
13 | be licensed
pursuant to the Ambulatory Surgical Treatment | ||||||
14 | Center Act;
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15 | 2. An institution, place, building, or agency required | ||||||
16 | to be licensed
pursuant to the Hospital Licensing Act;
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17 | 3. Skilled and intermediate long term care facilities | ||||||
18 | licensed under the
Nursing
Home Care Act;
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19 | 4. Hospitals, nursing homes, ambulatory surgical | ||||||
20 | treatment centers, or
kidney disease treatment centers
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21 | maintained by the State or any department or agency | ||||||
22 | thereof;
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23 | 5. Kidney disease treatment centers, including a | ||||||
24 | free-standing
hemodialysis unit; and
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25 | 6. An institution, place, building, or room used for | ||||||
26 | the performance of
outpatient surgical procedures that is | ||||||
27 | leased, owned, or operated by or on
behalf of an | ||||||
28 | out-of-state facility.
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29 | No federally owned facility shall be subject to the | ||||||
30 | provisions of this
Act, nor facilities used solely for healing | ||||||
31 | by prayer or spiritual means.
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32 | No facility licensed under the Supportive Residences |
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1 | Licensing Act or the
Assisted Living and Shared Housing Act
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2 | shall be subject to the provisions of this Act.
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3 | A facility designated as a supportive living facility that | ||||||
4 | is in good
standing with the demonstration project established | ||||||
5 | under Section 5-5.01a of
the Illinois Public Aid Code shall not | ||||||
6 | be subject to the provisions of this
Act.
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7 | This Act does not apply to facilities granted waivers under | ||||||
8 | Section 3-102.2
of the Nursing Home Care Act. However, if a | ||||||
9 | demonstration project under that
Act applies for a certificate
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10 | of need to convert to a nursing facility, it shall meet the | ||||||
11 | licensure and
certificate of need requirements in effect as of | ||||||
12 | the date of application.
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13 | This Act shall not apply to the closure of an entity or a | ||||||
14 | portion of an
entity licensed under the Nursing Home Care Act | ||||||
15 | that elects to convert, in
whole or in part, to an assisted | ||||||
16 | living or shared housing establishment
licensed under the | ||||||
17 | Assisted Living and Shared Housing Act.
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18 | With the exception of those health care facilities | ||||||
19 | specifically
included in this Section, nothing in this Act | ||||||
20 | shall be intended to
include facilities operated as a part of | ||||||
21 | the practice of a physician or
other licensed health care | ||||||
22 | professional, whether practicing in his
individual capacity or | ||||||
23 | within the legal structure of any partnership,
medical or | ||||||
24 | professional corporation, or unincorporated medical or
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25 | professional group. Further, this Act shall not apply to | ||||||
26 | physicians or
other licensed health care professional's | ||||||
27 | practices where such practices
are carried out in a portion of | ||||||
28 | a health care facility under contract
with such health care | ||||||
29 | facility by a physician or by other licensed
health care | ||||||
30 | professionals, whether practicing in his individual capacity
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31 | or within the legal structure of any partnership, medical or
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32 | professional corporation, or unincorporated medical or | ||||||
33 | professional
groups. This Act shall apply to construction or
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34 | modification and to establishment by such health care facility | ||||||
35 | of such
contracted portion which is subject to facility | ||||||
36 | licensing requirements,
irrespective of the party responsible |
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1 | for such action or attendant
financial obligation.
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2 | "Person" means any one or more natural persons, legal | ||||||
3 | entities,
governmental bodies other than federal, or any | ||||||
4 | combination thereof.
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5 | "Consumer" means any person other than a person (a) whose | ||||||
6 | major
occupation currently involves or whose official capacity | ||||||
7 | within the last
12 months has involved the providing, | ||||||
8 | administering or financing of any
type of health care facility, | ||||||
9 | (b) who is engaged in health research or
the teaching of | ||||||
10 | health, (c) who has a material financial interest in any
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11 | activity which involves the providing, administering or | ||||||
12 | financing of any
type of health care facility, or (d) who is or | ||||||
13 | ever has been a member of
the immediate family of the person | ||||||
14 | defined by (a), (b), or (c).
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15 | "State Board" means the Health Facilities Planning Board.
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16 | "Construction or modification" means the establishment, | ||||||
17 | erection,
building, alteration, reconstruction, modernization, | ||||||
18 | improvement,
extension, discontinuation, change of ownership, | ||||||
19 | of or by a health care
facility, or the purchase or acquisition | ||||||
20 | by or through a health care facility
of
equipment or service | ||||||
21 | for diagnostic or therapeutic purposes or for
facility | ||||||
22 | administration or operation, or any capital expenditure made by
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23 | or on behalf of a health care facility which
exceeds the | ||||||
24 | capital expenditure minimum; however, any capital expenditure
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25 | made by or on behalf of a health care facility for the | ||||||
26 | construction or
modification of a facility licensed under the | ||||||
27 | Assisted Living and Shared
Housing Act shall be excluded from | ||||||
28 | any obligations under this Act.
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29 | "Establish" means the construction of a health care | ||||||
30 | facility or the
replacement of an existing facility on another | ||||||
31 | site.
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32 | "Major medical equipment" means medical equipment which is | ||||||
33 | used for the
provision of medical and other health services and | ||||||
34 | which costs in excess
of the capital expenditure minimum, | ||||||
35 | except that such term does not include
medical equipment | ||||||
36 | acquired
by or on behalf of a clinical laboratory to provide |
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1 | clinical laboratory
services if the clinical laboratory is | ||||||
2 | independent of a physician's office
and a hospital and it has | ||||||
3 | been determined under Title XVIII of the Social
Security Act to | ||||||
4 | meet the requirements of paragraphs (10) and (11) of Section
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5 | 1861(s) of such Act. In determining whether medical equipment | ||||||
6 | has a value
in excess of the capital expenditure minimum, the | ||||||
7 | value of studies, surveys,
designs, plans, working drawings, | ||||||
8 | specifications, and other activities
essential to the | ||||||
9 | acquisition of such equipment shall be included.
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10 | "Capital Expenditure" means an expenditure: (A) made by or | ||||||
11 | on behalf of
a health care facility (as such a facility is | ||||||
12 | defined in this Act); and
(B) which under generally accepted | ||||||
13 | accounting principles is not properly
chargeable as an expense | ||||||
14 | of operation and maintenance, or is made to obtain
by lease or | ||||||
15 | comparable arrangement any facility or part thereof or any
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16 | equipment for a facility or part; and which exceeds the capital | ||||||
17 | expenditure
minimum.
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18 | For the purpose of this paragraph, the cost of any studies, | ||||||
19 | surveys, designs,
plans, working drawings, specifications, and | ||||||
20 | other activities essential
to the acquisition, improvement, | ||||||
21 | expansion, or replacement of any plant
or equipment with | ||||||
22 | respect to which an expenditure is made shall be included
in | ||||||
23 | determining if such expenditure exceeds the capital | ||||||
24 | expenditures minimum.
Donations of equipment
or facilities to a | ||||||
25 | health care facility which if acquired directly by such
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26 | facility would be subject to review under this Act shall be | ||||||
27 | considered capital
expenditures, and a transfer of equipment or | ||||||
28 | facilities for less than fair
market value shall be considered | ||||||
29 | a capital expenditure for purposes of this
Act if a transfer of | ||||||
30 | the equipment or facilities at fair market value would
be | ||||||
31 | subject to review.
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32 | "Capital expenditure minimum" means $6,000,000, which | ||||||
33 | shall be annually
adjusted to reflect the increase in | ||||||
34 | construction costs due to inflation, for major medical | ||||||
35 | equipment and for all other
capital expenditures; provided, | ||||||
36 | however, that when a capital expenditure is
for the |
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1 | construction or modification of a health and fitness center, | ||||||
2 | "capital
expenditure minimum" means the capital expenditure | ||||||
3 | minimum for all other
capital expenditures in effect on March | ||||||
4 | 1, 2000, which shall be annually
adjusted to reflect the | ||||||
5 | increase in construction costs due to inflation.
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6 | "Non-clinical service area" means an area (i) for the | ||||||
7 | benefit of the
patients, visitors, staff, or employees of a | ||||||
8 | health care facility and (ii) not
directly related to the | ||||||
9 | diagnosis, treatment, or rehabilitation of persons
receiving | ||||||
10 | services from the health care facility. "Non-clinical service | ||||||
11 | areas"
include, but are not limited to, chapels; gift shops; | ||||||
12 | news stands; computer
systems; tunnels, walkways, and | ||||||
13 | elevators; telephone systems; projects to
comply with life | ||||||
14 | safety codes; educational facilities; student housing;
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15 | patient, employee, staff, and visitor dining areas; | ||||||
16 | administration and
volunteer offices; modernization of | ||||||
17 | structural components (such as roof
replacement and masonry | ||||||
18 | work); boiler repair or replacement; vehicle
maintenance and | ||||||
19 | storage facilities; parking facilities; mechanical systems for
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20 | heating, ventilation, and air conditioning; loading docks; and | ||||||
21 | repair or
replacement of carpeting, tile, wall coverings, | ||||||
22 | window coverings or treatments,
or furniture. Solely for the | ||||||
23 | purpose of this definition, "non-clinical service
area" does | ||||||
24 | not include health and fitness centers.
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25 | "Areawide" means a major area of the State delineated on a
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26 | geographic, demographic, and functional basis for health | ||||||
27 | planning and
for health service and having within it one or | ||||||
28 | more local areas for
health planning and health service. The | ||||||
29 | term "region", as contrasted
with the term "subregion", and the | ||||||
30 | word "area" may be used synonymously
with the term "areawide".
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31 | "Local" means a subarea of a delineated major area that on | ||||||
32 | a
geographic, demographic, and functional basis may be | ||||||
33 | considered to be
part of such major area. The term "subregion" | ||||||
34 | may be used synonymously
with the term "local".
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35 | "Areawide health planning organization" or "Comprehensive | ||||||
36 | health
planning organization" means the health systems agency |
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1 | designated by the
Secretary, Department of Health and Human | ||||||
2 | Services or any successor agency.
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3 | "Local health planning organization" means those local | ||||||
4 | health
planning organizations that are designated as such by | ||||||
5 | the areawide
health planning organization of the appropriate | ||||||
6 | area.
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7 | "Physician" means a person licensed to practice in | ||||||
8 | accordance with
the Medical Practice Act of 1987, as amended.
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9 | "Licensed health care professional" means a person | ||||||
10 | licensed to
practice a health profession under pertinent | ||||||
11 | licensing statutes of the
State of Illinois.
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12 | "Director" means the Director of the Illinois Department of | ||||||
13 | Public Health.
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14 | "Agency" means the Illinois Department of Public Health.
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15 | "Comprehensive health planning" means health planning | ||||||
16 | concerned with
the total population and all health and | ||||||
17 | associated problems that affect
the well-being of people and | ||||||
18 | that encompasses health services, health
manpower, and health | ||||||
19 | facilities; and the coordination among these and
with those | ||||||
20 | social, economic, and environmental factors that affect | ||||||
21 | health.
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22 | "Alternative health care model" means a facility or program | ||||||
23 | authorized
under the Alternative Health Care Delivery Act.
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24 | "Out-of-state facility" means a person that is both (i) | ||||||
25 | licensed as a
hospital or as an ambulatory surgery center under | ||||||
26 | the laws of another state
or that
qualifies as a hospital or an | ||||||
27 | ambulatory surgery center under regulations
adopted pursuant | ||||||
28 | to the Social Security Act and (ii) not licensed under the
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29 | Ambulatory Surgical Treatment Center Act, the Hospital | ||||||
30 | Licensing Act, or the
Nursing Home Care Act. Affiliates of | ||||||
31 | out-of-state facilities shall be
considered out-of-state | ||||||
32 | facilities. Affiliates of Illinois licensed health
care | ||||||
33 | facilities 100% owned by an Illinois licensed health care | ||||||
34 | facility, its
parent, or Illinois physicians licensed to | ||||||
35 | practice medicine in all its
branches shall not be considered | ||||||
36 | out-of-state facilities. Nothing in
this definition shall be
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1 | construed to include an office or any part of an office of a | ||||||
2 | physician licensed
to practice medicine in all its branches in | ||||||
3 | Illinois that is not required to be
licensed under the | ||||||
4 | Ambulatory Surgical Treatment Center Act.
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5 | "Change of ownership of a health care facility" means a | ||||||
6 | change in the
person
who has ownership or
control of a health | ||||||
7 | care facility's physical plant and capital assets. A change
in | ||||||
8 | ownership is indicated by
the following transactions: sale, | ||||||
9 | transfer, acquisition, lease, change of
sponsorship, or other | ||||||
10 | means of
transferring control.
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11 | "Related person" means any person that: (i) is at least 50% | ||||||
12 | owned, directly
or indirectly, by
either the health care | ||||||
13 | facility or a person owning, directly or indirectly, at
least | ||||||
14 | 50% of the health
care facility; or (ii) owns, directly or | ||||||
15 | indirectly, at least 50% of the
health care facility.
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16 | "Charity care" means care provided by a health care | ||||||
17 | facility for which the provider does not expect to receive | ||||||
18 | payment from the patient or a third-party payer.
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19 | (Source: P.A. 93-41, eff. 6-27-03.)
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20 | (20 ILCS 3960/8.5 new) | ||||||
21 | Sec. 8.5. Certificate of exemption for change of ownership | ||||||
22 | of a health care facility; public notice and public hearing. | ||||||
23 | (a) Upon a finding by the Department of Public Health that | ||||||
24 | an application for a change of ownership is complete, the | ||||||
25 | Department of Public Health shall publish a legal notice on 3 | ||||||
26 | consecutive days in a newspaper of general circulation in the | ||||||
27 | area or community to be affected and afford the public an | ||||||
28 | opportunity to request a hearing. If the application is for a | ||||||
29 | facility located in a Metropolitan Statistical Area, an | ||||||
30 | additional legal notice shall be published in a newspaper of | ||||||
31 | limited circulation, if one exists, in the area in which the | ||||||
32 | facility is located. If the newspaper of limited circulation is | ||||||
33 | published on a daily basis, the additional legal notice shall | ||||||
34 | be published on 3 consecutive days. The legal notice shall also | ||||||
35 | be posted on the Illinois Health Facilities Planning Board's |
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1 | web site and sent to the State Representative and State Senator | ||||||
2 | of the district in which the health care facility is located. | ||||||
3 | The Department of Public Health shall not find that an | ||||||
4 | application for change of ownership of a hospital is complete | ||||||
5 | without a signed certification that for a period of 2 years | ||||||
6 | after the change of ownership transaction is effective, the | ||||||
7 | hospital will not adopt a charity care policy that is
more | ||||||
8 | restrictive than the policy in effect during the year prior to | ||||||
9 | the transaction. | ||||||
10 | For the purposes of this subsection, "newspaper of limited | ||||||
11 | circulation" means a newspaper intended to serve a particular | ||||||
12 | or defined population of a specific geographic area within a | ||||||
13 | Metropolitan Statistical Area such as a municipality, town, | ||||||
14 | village, township, or community area, but does not include | ||||||
15 | publications of professional and trade associations.
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16 | (b) If a public hearing is requested, it shall be held at | ||||||
17 | least 15 days but no more than 30 days after the date of | ||||||
18 | publication of the legal notice in the community in which the | ||||||
19 | facility is located. The hearing shall be held in a place of | ||||||
20 | reasonable size and accessibility and a full and complete | ||||||
21 | written transcript of the proceedings shall be made. The | ||||||
22 | applicant shall provide a summary of the proposed change of | ||||||
23 | ownership for distribution at the public hearing.
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