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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,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Health Facilities Planning Act is | ||||||||||||||||||||||||||||||||||
5 | amended by adding Sections 5.4, 5.4a, 5.4b, 5.4c, and 5.4d as | ||||||||||||||||||||||||||||||||||
6 | follows: | ||||||||||||||||||||||||||||||||||
7 | (20 ILCS 3960/5.4 new) | ||||||||||||||||||||||||||||||||||
8 | Sec. 5.4. Definitions. In this Section through Section | ||||||||||||||||||||||||||||||||||
9 | 5.4d:
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10 | "Closure" means the cessation of operations of a
nursing | ||||||||||||||||||||||||||||||||||
11 | facility and delicensure and decertification of all beds
within | ||||||||||||||||||||||||||||||||||
12 | a nursing facility. | ||||||||||||||||||||||||||||||||||
13 | "Closure plan" means a plan to close a nursing facility
and | ||||||||||||||||||||||||||||||||||
14 | reallocate a portion of the resulting savings to provide
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15 | planned closure rate adjustments at other facilities. | ||||||||||||||||||||||||||||||||||
16 | "Commencement of closure" means the date on which
residents | ||||||||||||||||||||||||||||||||||
17 | of a nursing facility and their designated representatives are | ||||||||||||||||||||||||||||||||||
18 | notified of a
planned closure of the facility as part of an | ||||||||||||||||||||||||||||||||||
19 | approved closure plan. | ||||||||||||||||||||||||||||||||||
20 | "Completion of closure" means the date on which the
final | ||||||||||||||||||||||||||||||||||
21 | resident of a nursing facility designated for closure in
an | ||||||||||||||||||||||||||||||||||
22 | approved closure plan is discharged from the facility. | ||||||||||||||||||||||||||||||||||
23 | "Nursing facility" or "facility" means a facility subject | ||||||||||||||||||||||||||||||||||
24 | to licensure under the Nursing Home Care Act, including a | ||||||||||||||||||||||||||||||||||
25 | county nursing home directed and maintained under Section | ||||||||||||||||||||||||||||||||||
26 | 5-1005 of the Counties Code. | ||||||||||||||||||||||||||||||||||
27 | "Partial closure" means the delicensure and
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28 | decertification of a portion of the beds within a nursing | ||||||||||||||||||||||||||||||||||
29 | facility. | ||||||||||||||||||||||||||||||||||
30 | "Planned closure rate adjustment" means an increase in
a | ||||||||||||||||||||||||||||||||||
31 | nursing facility's operating rates resulting from a planned
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32 | closure or a planned partial closure of another facility, as |
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1 | provided in Section 5-5.4c of the Illinois Public Aid Code. | ||||||
2 | "Region" means a State development region designated by the | ||||||
3 | Agency.
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4 | (20 ILCS 3960/5.4a new) | ||||||
5 | Sec. 5.4a. Program for planned closure. By August 15, 2005, | ||||||
6 | the Agency, in cooperation with the Department of Public Aid, | ||||||
7 | shall implement and announce a program for closure or
partial | ||||||
8 | closure of nursing facilities. Names and identifying
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9 | information provided in response to the announcement shall
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10 | remain private unless approved, according to the timelines
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11 | established in the plan. The announcement must specify the | ||||||
12 | following: | ||||||
13 | (1) The criteria in Section 5.4c that will be used by | ||||||
14 | the
Agency to approve or reject an application for planned | ||||||
15 | closure.
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16 | (2) The information that must accompany an application | ||||||
17 | for planned closure.
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18 | (20 ILCS 3960/5.4b new) | ||||||
19 | Sec. 5.4b. Approval of application for planned closure. | ||||||
20 | (a) Between August 15, 2005, and June 30, 2006, the Agency | ||||||
21 | may
approve planned closures of up to 5,000 nursing facility | ||||||
22 | beds,
less the number of beds delicensed in facilities during | ||||||
23 | the same
time period without approved closure plans or that | ||||||
24 | have notified
the Agency of their intent to close without an
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25 | approved closure plan. | ||||||
26 | (b) To be considered for approval, an application for | ||||||
27 | planned closure must address the criteria listed in Section | ||||||
28 | 5.4c and
must also include all of the following: | ||||||
29 | (1) A description of the proposed closure plan, which | ||||||
30 | must
include identification of the facility or facilities | ||||||
31 | to receive
a planned closure rate adjustment.
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32 | (2) The proposed timetable for any proposed closure,
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33 | including the proposed dates for announcement of the | ||||||
34 | closure to residents of the facility,
commencement of |
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1 | closure, and completion of closure. | ||||||
2 | (3) If available, the proposed relocation plan for | ||||||
3 | current
residents of any facility designated for closure. | ||||||
4 | If a
relocation plan is not available, the application must | ||||||
5 | include a
statement agreeing to develop a relocation plan. | ||||||
6 | (4) A description of the relationship between the | ||||||
7 | nursing
facility that is proposed for closure and the | ||||||
8 | nursing facility
or facilities proposed to receive the | ||||||
9 | planned closure rate
adjustment. If these facilities are | ||||||
10 | not under common ownership, the applicant must provide
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11 | copies of any contracts, purchase agreements, or other | ||||||
12 | documents
establishing a relationship or proposed | ||||||
13 | relationship. | ||||||
14 | (5) Documentation, in a format approved by the
Agency | ||||||
15 | and the Department of Public Aid, that all of the nursing | ||||||
16 | facilities receiving a
planned closure rate adjustment | ||||||
17 | under the plan have accepted
joint and several liability | ||||||
18 | for recovery of overpayments for the facilities designated
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19 | for closure under the plan.
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20 | (20 ILCS 3960/5.4c new) | ||||||
21 | Sec. 5.4c. Criteria for review of application for planned | ||||||
22 | closure. In
reviewing and approving an application for planned | ||||||
23 | closure of a nursing facility, the Agency
shall consider | ||||||
24 | criteria that include, but need not be limited to, the | ||||||
25 | following: | ||||||
26 | (1) Improved quality of care and quality of life for
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27 | consumers of nursing facility services.
| ||||||
28 | (2) Closure of a nursing facility that has a poor physical
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29 | plant.
| ||||||
30 | (3) The existence of excess nursing facility beds, measured
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31 | in terms of beds per thousand persons aged 65 or older. The
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32 | excess must be measured in reference to one of the following:
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33 | (A) The region in which the facility is located.
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34 | (B) The region in which the facility is located and all | ||||||
35 | contiguous regions.
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1 | (C) The facility's service area. A facility must | ||||||
2 | indicate in its application for planned closure the service | ||||||
3 | area that the facility believes is appropriate for this | ||||||
4 | measurement.
| ||||||
5 | (4) Low-occupancy rates, provided that the unoccupied beds
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6 | are not the result of a personnel shortage. In analyzing
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7 | occupancy rates, the Agency shall examine waiting lists in
the | ||||||
8 | applicant facility and at facilities in the surrounding
area, | ||||||
9 | as determined under item (3) of this Section.
| ||||||
10 | (5) Proposed usage of moneys available from a planned
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11 | closure rate adjustment for care-related purposes.
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12 | (6) Innovative use planned for the closed facility's
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13 | physical plant.
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14 | (7) Evidence that the proposal serves the interests of the
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15 | State.
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16 | (8) Evidence of other factors that affect the viability of
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17 | the facility, including excessive nursing pool costs.
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18 | (20 ILCS 3960/5.4d new) | ||||||
19 | Sec. 5.4d. Time for approval; duration of approval.
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20 | (a) The Agency, in consultation with the
Department of | ||||||
21 | Public Aid, shall approve or disapprove an
application for | ||||||
22 | planned closure of a nursing facility within 30 days after | ||||||
23 | receiving the application.
| ||||||
24 | (b) Approval of a planned closure expires 18 months after
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25 | approval by the Agency, unless
commencement of closure has | ||||||
26 | begun.
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27 | Section 10. The Illinois Public Aid Code is amended by | ||||||
28 | adding Section 5-5.4c as follows: | ||||||
29 | (305 ILCS 5/5-5.4c new)
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30 | Sec. 5-5.4c. Planned closure rate adjustment; assignment. | ||||||
31 | (a) A facility or facilities reimbursed with a closure plan | ||||||
32 | approved by the
Department of Public Health under Sections 5.4 | ||||||
33 | through 5.4d of the Illinois Health Facilities Planning Act may |
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1 | assign a planned closure
rate adjustment (i) to another | ||||||
2 | facility or facilities that are not
closing or (ii) in the case | ||||||
3 | of a partial closure, to the facility
undertaking the partial | ||||||
4 | closure. A facility may also elect to
have a planned closure | ||||||
5 | rate adjustment shared equally by the
5 nursing facilities with | ||||||
6 | the lowest total operating payment
rates in the region in which | ||||||
7 | the facility that is closing is located. The planned closure | ||||||
8 | rate adjustment must be calculated under
subsection (b). | ||||||
9 | A facility that delicenses beds without a closure
plan, or | ||||||
10 | whose closure plan is not approved by the Department of Public | ||||||
11 | Health,
is not eligible to assign a planned closure rate | ||||||
12 | adjustment
under this Section unless:
| ||||||
13 | (1) the facility is delicensing 5 or fewer
beds or less | ||||||
14 | than 6% of the facility's total licensed bed
capacity, | ||||||
15 | whichever is greater;
| ||||||
16 | (2) the facility is located in a county in the
top 3 | ||||||
17 | quartiles of beds per 1,000 persons aged 65 or older;
and
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18 | (3) the facility has not delicensed beds in the prior 3 | ||||||
19 | months.
| ||||||
20 | A facility that meets the criteria set forth in items (1) | ||||||
21 | through (3) is eligible to assign the
amount calculated under | ||||||
22 | subsection (b) to itself.
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23 | If a
facility is delicensing the greater of 6 or more beds | ||||||
24 | or 6% percent or more of its total licensed bed capacity and | ||||||
25 | does not
have an approved closure plan or is not eligible for | ||||||
26 | the
adjustment under this Section, the Department of Public Aid | ||||||
27 | shall calculate
the amount the facility would have been | ||||||
28 | eligible to assign under
this Section and shall use this amount | ||||||
29 | to provide equal rate
adjustments to the 5 nursing facilities | ||||||
30 | with the lowest total
operating payment rates in the region
in | ||||||
31 | which the facility that
delicensed beds is located.
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32 | (b) The Department of Public Aid shall calculate the amount | ||||||
33 | of the
planned closure rate adjustment available under | ||||||
34 | subsection (a) according to rules adopted by the Department.
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35 | (c) An applicant may use the planned closure rate | ||||||
36 | adjustment
to allow for a property payment for a new nursing |
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1 | facility or an
addition to an existing nursing facility or as | ||||||
2 | an operating
payment rate adjustment.
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3 | (d) A facility that has received a planned closure rate
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4 | adjustment may reassign it to another facility that is under | ||||||
5 | the
same ownership at any time within 3 years after the | ||||||
6 | effective
date of the adjustment. The amount of the adjustment | ||||||
7 | shall be computed according
to subsection (b).
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