093_SB1064enr SB1064 Enrolled LRB093 06804 AMC 06946 b 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 1. Short title. This Act may be cited as the 5 Community Benefits Act. 6 Section 5. Applicability. This Act does not apply to a 7 hospital operated by a unit of government, a hospital located 8 outside of a metropolitan statistical area, or a hospital 9 with 100 or fewer beds. Hospitals that are owned or operated 10 by or affiliated with a health system shall be deemed to be 11 in compliance with this Act if the health system has met the 12 requirements of this Act. 13 Section 10. Definitions. As used in this Act: 14 "Charity care" means care provided by a health care 15 provider for which the provider does not expect to receive 16 payment from the patient or a third party payer. 17 "Community benefits" means the unreimbursed cost to a 18 hospital or health system of providing charity care, language 19 assistant services, government-sponsored indigent health 20 care, donations, volunteer services, education, 21 government-sponsored program services, research, and 22 subsidized health services and collecting bad debts. 23 "Community benefits" does not include the cost of paying any 24 taxes or other governmental assessments. 25 "Government sponsored indigent health care" means the 26 unreimbursed cost to a hospital or health system of Medicare, 27 providing health care services to recipients of Medicaid, and 28 other federal, State, or local indigent health care programs, 29 eligibility for which is based on financial need. 30 "Health system" means an entity that owns or operates at SB1064 Enrolled -2- LRB093 06804 AMC 06946 b 1 least one hospital. 2 "Nonprofit hospital" means a hospital that is organized 3 as a nonprofit corporation, including religious 4 organizations, or a charitable trust under Illinois law or 5 the laws of any other state or country. 6 "Subsidized health services" means those services 7 provided by a hospital in response to community needs for 8 which the reimbursement is less than the hospital's cost of 9 providing the services that must be subsidized by other 10 hospital or nonprofit supporting entity revenue sources. 11 "Subsidized health services" includes, but is not limited to, 12 emergency and trauma care, neonatal intensive care, community 13 health clinics, and collaborative efforts with local 14 government or private agencies to prevent illness and improve 15 wellness, such as immunization programs. 16 Section 15. Organizational mission statement; community 17 benefits plan. A nonprofit hospital shall develop: 18 (1) an organizational mission statement that 19 identifies the hospital's commitment to serving the 20 health care needs of the community; and 21 (2) a community benefits plan defined as an 22 operational plan for serving the community's health care 23 needs that: 24 (A) sets out goals and objectives for 25 providing community benefits that include charity 26 care and government sponsored indigent health care; 27 and 28 (B) identifies the populations and communities 29 served by the hospital. 30 Section 20. Annual report for community benefits plan. 31 (a) Each nonprofit hospital shall prepare an annual 32 report of the community benefits plan. The report must SB1064 Enrolled -3- LRB093 06804 AMC 06946 b 1 include, in addition to the community benefits plan itself, 2 all of the following background information: 3 (1) The hospital's mission statement. 4 (2) A disclosure of the health care needs of the 5 community that were considered in developing the 6 hospital's community benefits plan. 7 (3) A disclosure of the amount and types of 8 community benefits actually provided, including charity 9 care. Charity care must be reported separate from other 10 community benefits. In reporting charity care, the 11 hospital must report the actual cost of services 12 provided, based on the total cost to charge ratio derived 13 from the hospital's Medicare cost report (CMS 2552-96 14 Worksheet C, Part 1, PPS Inpatient Ratios), not the 15 charges for the services. 16 (4) Audited annual financial reports for its most 17 recently completed fiscal year. 18 (b) Each nonprofit hospital shall annually file a report 19 of the community benefits plan with the Attorney General. The 20 report must be filed not later than the last day of the sixth 21 month after the close of the hospital's fiscal year, 22 beginning with the hospital fiscal year that ends in 2004. 23 (c) Each nonprofit hospital shall prepare a statement 24 that notifies the public that the annual report of the 25 community benefits plan is: 26 (1) public information; 27 (2) filed with the Attorney General; and 28 (3) available to the public on request from the 29 Attorney General. 30 This statement shall be made available to the public. 31 (d) The obligations of a hospital under this Act, except 32 for the filing of its audited financial report, shall take 33 effect beginning with the hospital's fiscal year that begins 34 after the effective date of this Act. Within 60 days of the SB1064 Enrolled -4- LRB093 06804 AMC 06946 b 1 effective date of this Act, a hospital shall file the audited 2 annual financial report that has been completed for its most 3 recently completed fiscal year. Thereafter, a hospital shall 4 include its audited annual financial report for its most 5 recently completed fiscal year in its annual report of its 6 community benefits plan. 7 Section 25. Failure to file annual report. The Attorney 8 General may assess a late filing fee against a nonprofit 9 hospital that fails to make a report of the community 10 benefits plan as required under this Act in an amount not to 11 exceed $100. The Attorney General may grant extensions for 12 good cause. No penalty may be assessed against a hospital 13 under this Section until 30 business days have elapsed after 14 written notification to the hospital of its failure to file a 15 report. 16 Section 30. Other rights and remedies retained. The 17 rights and remedies provided for in this Act are in addition 18 to other statutory or common law rights or remedies available 19 to the State. 20 Section 40. Home rule. A home rule unit may not 21 regulate hospitals in a manner inconsistent with the 22 provisions of this Act. This Section is a limitation under 23 subsection (i) of Section 6 of Article VII of the Illinois 24 Constitution on the concurrent exercise by home rule units of 25 powers and functions exercised by the State. 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.