HB4999 94TH GENERAL ASSEMBLY

LRB094 15918 LCT 51656 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4999

Introduced 1/23/2006, by Rep. Karen May

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.663 new
110 ILCS 330/5	from Ch. 23, par. 1375
210 ILCS 85/7	from Ch. 111 1/2, par. 148

Creates the Hospital Fair Billing and Collection Practices Act. Requires a hospital's governing body to adopt policies: (i) prohibiting abusive, harassing, oppressive, false, deceptive, or misleading language or collection conduct by any collection agency or attorney retained by the hospital for the collection of medical debt, any agent or employee of a collection agency or attorney, or any hospital employee who participates in the collection of medical debt from patients; (ii) establishing the procedures to be utilized by every collection agency retained by the hospital for the collection of medical debt; (iii) establishing the procedures to be utilized by the hospital's employees who participate in the collection of debt; and (iv) establishing procedures for ensuring the timely and accurate submission of claims to third party payors. Prohibits a hospital from selling any debt owed to it by a patient for medical or hospital services, except to a collection agency. Establishes required billing practices for a hospital. Requires a hospital to enter into a written contract with any collection agency or attorney that it retains to collect medical debts from patients and outlines the contract requirements. Provides for civil penalties and injunctive relief. Preempts home rule. Creates the Hospital Fair Billing and Collection Practices Act Enforcement Fund. Provides that the monies in the Fund shall be used by the Attorney General for the enforcement of the Act. Amends the State Finance Act to create the Hospital Fair Billing and Collection Practices Act Enforcement Fund. Amends the University of Illinois Hospital Act to make the collection of hospital service charges by the University subject to the Hospital Fair Billing and Collection Practices Act. Amends the Hospital Licensing Act. Provides that the Director may deny, suspend, or revoke a hospital's license for failure to comply with the provisions of the Hospital Fair Billing and Collection Practices Act. Effective January 1, 2007.

FISCAL NOTE ACT MAY APPLY

HOME RULE NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning collection practices.

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

ARTICLE 1. GENERAL PROVISIONS

Section 1-1. Short title. This Act may be cited as the Hospital Fair Billing and Collection Practices Act.

Section 1-5. Application. This Act applies to all hospitals licensed under the Hospital Licensing Act or the University of Illinois Hospital Act.

Section 1-10. Purpose; findings.

(a) The purpose of this Act is to advance public health and welfare through the establishment, implementation, and enforcement of clear standards for fair patient billing and collection practices to be adopted by all Illinois hospitals.

(b) The Illinois General Assembly finds that:

(1) Medical debts are the cause of an increasing number of bankruptcies in Illinois and are typically associated with severe financial hardship incurred by the bankrupt persons and their families.

(2) Statistical evidence confirms the increasing prevalence of bankruptcies caused by medical debts, and the financial privations that these bankruptcies impose on those affected. Researchers at the Harvard Law School and Harvard Medical School have published a study on medical bankruptcies in the journal Health Affairs that included the following findings: (i) between 46.2% and 54.5% of all bankruptcies in the United States in 2001 were caused, at least in part, by illness or medical debts; (ii) approximately 2,000,000 million persons nationwide were in medically bankrupt families in 2001, including an estimated 111,544 persons in Illinois alone; (iii) medical bankruptcies nationwide increased by an estimated 2,200% between 1981 and 2001; and (iv) in the 2 years before filing for medical bankruptcy, 22% of affected families went without food, 30% had a utility shut off, 61% went without needed medical care, and 50% failed to fill a doctor's prescription.

(3) Increasingly, patients at Illinois hospitals have been subjected to aggressive billing and collection practices.

(4) Patients, hospitals, and government bodies alike will benefit from clearly-articulated standards regarding fair billing and collection practices for all Illinois hospitals.

(5) Medical debt collection activities by hospitals and external collection agencies and attorneys should reflect the billing and collection policies of the hospitals.

(6) Hospitals should employ responsible standards when collecting debt from their patients.

(7) The Attorney General, as the chief legal officer for the State, should have primary authority and responsibility for the implementation and enforcement of this Act.

Section 1-15. Definitions. As used in this Act:

"Bill" or "billing statement" means an itemized billing statement described in Section 10-15 of this Act.

"Collection agency" means a collection agency as defined in Section 2.02 of the Collection Agency Act.

"Third party payor" means an entity that provides an insurance, medical service, or health plan by contract or agreement.

ARTICLE 5. HOSPITAL COLLECTION POLICIES

Section 5-5. Required hospital policies. A hospital's governing body must adopt all of the following policies, which shall not be inconsistent with this Act:

(1) A policy prohibiting abusive, harassing, oppressive, false, deceptive, or misleading language or collection conduct by any collection agency or attorney retained by the hospital for the collection of medical debt, any agent or employee of a collection agency or attorney, or any hospital employee who participates in the collection of medical debt from patients.

(2) A policy establishing the procedures to be utilized by every collection agency retained by the hospital for the collection of medical debt.

(3) A policy establishing the procedures to be utilized by the hospital's employees who participate in the collection of debt.

(4) A policy establishing procedures for ensuring the timely and accurate submission of claims to third party payors.

Section 5-10. Sales of medical debt. A hospital shall not sell any debt owed to it by a patient for medical or hospital services provided on or after the effective date of this Act, except to a collection agency.

ARTICLE 10. HOSPITAL BILLING

Section 10-5. Billing practices; third party payors.

(a) If a hospital receives information about the patient's third party payor but does not submit a claim to the third party payor within a deadline established by that payor, the hospital must not bill the patient for the unsubmitted claim. If the hospital submits a claim to a third party payor, and there is any unresolved dispute as to the amount owed by this payor, the hospital must not bill the patient for any amount in excess of that for which the patient would have been responsible had the third party payor paid the claim.

(b) A hospital must not refer any bill to a collection agency or attorney for collection activity while a claim for payment of the bill is pending with a third party payor. A claim for payment shall be considered pending as long as the patient retains appeal rights under the patient's insurance plan or under any State or federal law.

(c) A hospital must not refer a bill, or portion thereof, to a collection agency or attorney for collection activity if that bill, or portion thereof, documents a debt incurred by a patient to the hospital solely because of denial of a claim by a third party payor due to the hospital's error.

Section 10-10. Notification concerning out-of-network providers. During admission or as soon as practicable thereafter, the hospital must provide a patient, or the patient's authorized representative, with written notice that:

(1) the patient may receive separate bills for services provided by hospital staff members;

(2) if applicable, not all hospital staff members are employees of the hospital and therefore may not be participating providers in the same insurance plans and networks as the hospital;

(3) if applicable, the patient may receive limited benefits for services provided by hospital staff members with respect to coverage or patient costs; and

(4) questions about coverage or benefit levels should be directed to the patient's health insurer or provider.

Section 10-15. Provision of itemized bill. Upon discharge from hospital or the completion of outpatient services, a hospital must provide a patient, or his or her authorized representative, with an itemized billing statement detailing, in clearly comprehensible language, the specific nature of charges or expenses incurred by the patient. The billing statement must include explanations of the nature and status of co-payments or deductibles for which the patient is responsible. A patient is entitled to prompt receipt of additional copies of the itemized billing statement upon request to the hospital.

Section 10-20. Bill inquiries; disputes.

(a) A hospital must implement a process for patients, or their authorized representatives, to inquire about or dispute bills, including a toll-free telephone number that patients may call, an address to which they may write, and a named representative, designated by the hospital to receive billing inquiries, whom patients or their authorized representatives may consult in person.

(b) The hospital's toll-free telephone number, mailing address, and the name, address, and telephone number of the hospital's designated representative for responding to patient billing inquiries in person must be listed on all patient bills and collection notices sent by the hospital. During the hospital's regular business hours, a person must be available to receive all toll-free telephone billing inquiries, as well as to respond to requests to meet in person with a designated hospital billing representative.

(c) The hospital must return telephone calls made by patients as promptly as possible, but in no event later than one business day after the call is received. The hospital must respond to written correspondence received from patients within 5 days after the correspondence is received. Upon request by a patient, or the patient's authorized representative, for a meeting with a designated hospital billing representative, the hospital must allow the meeting to take place as soon as possible, but in no event more than 5 days following the date of the request.

(d) For purposes of this Section, "business day" means a day on which the hospital's billing office is open for regular business.

Section 10-25. Billing Dispute Resolution.

(a) A hospital's designated representative must suspend billing efforts immediately upon receipt of a written or oral notice of a claim by a patient, or the patient's authorized representative, that the patient does not owe all or part of a debt indicated in a billing statement. This notice must include all of the following:

(1) The patient's name and account number.

(2) The patient's claim that there is a billing error.

(3) The reasons for the patient's claim that there is a billing error. These reasons may include, but are not limited to, liability by a third party payor for payment of the hospital bill, a pending application for charity care, or lack of documentation for the bill.

(b) Within 5 business days after receipt by the hospital of the notice described in subsection (a) of this Section, the hospital's designated representative must send a written acknowledgment of receipt of this notice to the patient or the patient's authorized representative.

(c) Within 14 days after receipt of the notice described in subsection (a) of this Section, the hospital's designated representative must do both of the following:

(1) Make all appropriate corrections to the patient's account and notify the patient, or the patient's authorized representative, in writing of these corrections.

(2) Send a written response to the patient, or the patient's authorized representative, which includes:

(A) an explanation in clear, understandable terms why the amount currently billed to the patient by the hospital, after all appropriate corrections have been made under item (1) of this subsection (c), is a correct amount;

(B) copies of documentary records establishing the patient's indebtedness, including documentary records establishing that all third party payors were appropriately billed; and

(C) an explanation in clear, understandable terms of the payment choices available to the patient, or patient's authorized representative, under subsection (d) of this Section.

(d) Within 30 days after receipt of a written response by a hospital as provided by item (2) of subsection (c) of this Section, a patient, or a patient's authorized representative, to whom a response has been sent must do one of the following:

(1) Pay the patient's entire debt to the hospital, as indicated by the billing statement and any subsequent corrections by the hospital.

(2) Make arrangements with the hospital to pay the patient's debt to the hospital, as indicated by the billing statement and any subsequent corrections by the hospital, under the terms of a reasonable payment plan. A hospital must offer a payment plan to a patient who cannot pay the entire amount of the bill in one payment. A hospital may require a patient, or the patient's authorized representative, to provide reasonable verification of his or her inability to pay the entire amount of a debt in one payment.

(3) Inform the hospital, either orally or in writing, that the patient, or the patient's authorized representative, disputes all or any portion of the hospital's written response under subsection (c) of this Section affecting the amount of the patient's debt to the hospital. The hospital must promptly undertake a good faith review of the disputed portion of its written response and must respond to the patient in writing within 14 days with its decision whether, and by what amount, the patient's account should be modified as a result of this review. Following the hospital's response under this item (3), the patient shall have 30 days to either pay his or her entire debt to the hospital, as indicated by the billing statement and all subsequent corrections by the hospital, or make arrangements with the hospital to pay this debt under the terms of a reasonable payment plan under the conditions established by item (2) of this subsection (d).

(e) A hospital must not resume billing efforts under this Section until 30 days after receipt by the patient of a written explanation under subsection (c) of this Section. Where a patient informs a hospital that he or she disputes all or any portion of a hospital's documented response as provided in item (3) of subsection (d) of this Section, the hospital must not resume billing efforts until 30 days after the hospital has responded to the patient as provided by that paragraph. A patient, or the patient's authorized representative, may withhold payment to a hospital of a billed amount during any period in which a hospital is prohibited from resuming billing efforts under this subsection (e).

Section 10-30. Log of patient complaints. A hospital must develop a system to record and log all patient complaints concerning billing and collection efforts received by the hospital's billing office regarding the collection of medical debt by the hospital or by any collection agency or attorney retained by the hospital. A hospital may maintain the records at more than one location. Information to be maintained in this log must include: (i) the name of the patient and contact information for the patient; (ii) date upon which the complaint was made; and (iii) nature of the billing dispute and the resolution. A hospital must provide a copy of any records concerning patient complaints maintained in accordance with this Section to the Attorney General upon written request for the records.

ARTICLE 15. COLLECTION AGENCIES AND ATTORNEYS

Section 15-5. Written contract. A hospital must enter into a written contract with any collection agency or attorney that it retains to collect medical debts from patients. The contract must require the collection agency or attorney to act in accordance with this Act, applicable laws, and the hospital's policies adopted under Section 5-5 of this Act. Any collection agency retained by the hospital under a contract required by this Section must be licensed under the Collection Agency Act. A hospital, collection agency, or attorney must provide a copy of a contract required under this Section to the Attorney General upon written request for the contract.

Section 15-10. Referral of patient's account. A hospital must not refer any patient's account to a collection agency or attorney for collection except through an authorized representative and until verifying all of the following:

(1) The hospital has fully complied with the provisions of Article 10 of this Act.

(2) There is a reasonable basis to believe that the patient owes the debt.

(3) All known third party payors have been properly billed by the hospital.

(4) Any remaining debt is solely the financial responsibility of the patient.

(5) If the patient has indicated an inability to pay the full amount of the debt in one payment, the hospital has offered the patient a reasonable payment plan. The hospital may require the patient to provide reasonable verification of his or her inability to pay the full amount of the debt in one payment.

(6) To the extent the hospital dispenses charity care and the circumstances of the patient suggest the potential eligibility for charity care, the patient has been given at least 60 days following the date of discharge from hospital or receipt of outpatient care to submit an application for charity care.

(7) A hospital must not refer any debt to a collection agency or attorney for collection if the patient has made and continues to make payments on that debt in accordance with the terms of a payment plan previously agreed to by the hospital and the patient.

Section 15-15. Log of patient complaints. A hospital must require by contract every collection agency or attorney retained by the hospital for the purpose of collecting medical debt to keep a log of all oral and written complaints received from any patient, or the patient's authorized representative, concerning the conduct of the collection agency or attorney. The hospital must obtain a complete and updated copy of the log at least 6 times per year. The hospital's contract with the collection agency or attorney must provide that failure by the agency or attorney to log and provide to the hospital all patient complaints in the manner required by this Section shall result in termination of the hospital's contract with the collection agency or attorney. Information to be maintained in this log must include the name of the patient and contact information for the patient, date upon which the complaint was made, nature of the billing dispute, and the resolution. A hospital, collection agency, or attorney must provide a copy of any records concerning patient complaints maintained in accordance with this Section to the Attorney General upon written request.

For purposes of this Section, "complaint" means any communication from a patient or a patient's authorized representative in which the patient or authorized representative expresses concerns about the conduct of the collection agency or attorney in connection with the collection of the medical debt owed to the hospital by the patient.

Section 15-20. Record of communications with patients. A hospital must require every collection agency and attorney retained by the hospital to collect medical debt to keep a record of the date, time, and purpose of all communications to or from the hospital's patients, or their authorized representatives, in connection with debt collection activities. The hospital's contract with the collection agency or attorney must provide that failure by the agency or attorney to keep records in accordance with this Section shall result in termination of the hospital's contract with the collection agency or attorney. A collection agency or attorney must provide a copy of all records of patient communications required under this Section to the Attorney General upon written request.

Section 15-25. Hospital contact information. If a patient asks a collection agency or attorney that the hospital has retained for the collection of medical debt for the hospital's contact information, the collection agency or attorney must provide the patient with the toll-free telephone number, mailing address, and name, address, and telephone number of the hospital's designated hospital representative for billing inquiries described in Section 10-20. The hospital must not refuse to supply information to or speak with any of its patients on the basis that a patient's account has been referred to a collection agency or attorney for collection of debt.

ARTICLE 20. LITIGATION PRACTICES

Section 20-5. Authority to take legal action against patient.

(a) No action for the collection of a debt owed by a patient to a hospital for medical services shall be filed in any court without written authorization by the designated hospital representative who is a corporate officer of the hospital appointed by a hospital's governing body for purposes of authorizing such an action.

(b) The designated hospital representative appointed by a hospital's governing board for purposes of considering when actions for the collection of debts should be filed against patients must not authorize the filing of any action against a patient to collect debt until verifying all of the following:

(1) The hospital has fully complied with the provisions of Article 10 of this Act.

(2) There is a reasonable basis to believe that the patient owes the debt.

(3) All known third party payors have been properly billed by the hospital.

(4) Any remaining debt is solely the financial responsibility of the patient.

(5) If the patient has indicated an inability to pay the full amount of the debt in one payment, the hospital has offered the patient a reasonable payment plan. The hospital may require the patient to provide reasonable verification of his or her inability to pay the full amount of the debt in one payment.

(6) To the extent the hospital dispenses charity care and the circumstances of the patient suggest the potential eligibility for charity care, the patient has been given at least 60 days following the date of discharge from hospital or receipt of outpatient care to submit an application for charity care, and, if the patient has filed an application, the application has been properly denied.

Section 20-10. Authority to enforce judgments. Any hospital seeking to enforce a judgment obtained against a patient for a debt owed by the patient by means of any proceeding included in Article XII of the Code of Civil Procedure must have prior written authorization for the proceeding by the governing body of the hospital. To the extent that there is any conflict between the provisions of this Act and the enforcement of judgment provisions contained in Article XII of the Code of Civil Procedure including, without limitation, the provisions pertaining to actions for garnishments or wage deductions, the provisions of this Act shall control.

Section 20-15. No subcontracting. A hospital must enter into a written contract directly with any attorney retained by the hospital to collect medical debt from its patients and may not subcontract or delegate the selection of an attorney to a collection agency retained by the hospital. Any contract between a hospital and an attorney under this Section must require the attorney to comply with the provisions of this Act, applicable laws, and the hospital's policies adopted under Section 5-5.

ARTICLE 25. PATIENT BILLING RIGHTS

Section 25-5. Required notification of patient billing rights.

(a) Upon discharge or the completion of outpatient services, a hospital must provide every patient, or the patient's authorized representative, with a document entitled "Patient Billing Rights", which advises every patient in writing of the following:

(1) The hospital must provide the patient with an itemized and clearly understandable billing statement upon discharge or the completion of outpatient services and must provide additional copies of this statement to the patient upon request.

(2) The patient is entitled to receive a detailed explanation of the itemized billing statement from a designated hospital employee, either by calling a listed toll-free telephone number established by the hospital for such explanations, through an inquiry by mail to a listed hospital mailing address, or by meeting in person with a named representative designated by the hospital to address patient billing inquiries.

(3) The patient has a right to dispute all, or any portion, of an itemized billing statement by notifying the hospital of the patient's claim that there is a billing error and the reasons for this claim.

(4) If the patient cannot pay the full amount of the debt in one payment, the hospital must offer the patient a reasonable payment plan. The hospital may require the patient to provide reasonable verification of his or her inability to pay the full amount of the debt in one payment.

(5) The hospital is prohibited from referring bills to a collection agency or attorney contractually retained by the hospital while a claim for payment of the bill is pending with a third party payor. A claim for payment shall be considered pending as long as the patient retains appeal rights under the patient's insurance plan or under any State or federal law.

(6) The hospital may not file any court action for the collection of a debt owed by the patient without the written authorization of an officer of the hospital designated by the hospital's governing board. The hospital's governing board must authorize any action to enforce a debt against a patient through garnishment, wage deduction, or any other proceeding for the enforcement of a judgment included in Article XII of the Code of Civil Procedure.

(7) The patient has the right to make complaints about hospital billing practices to the Attorney General under Section 30-10 of this Act, by following complaint procedures summarized in the statement of Patient Billing Rights.

(b) The Attorney General shall develop a standard form for the statement of Patient Billing Rights, which must be used by all hospitals in providing the mandated notifications under this Section.

(c) A hospital is responsible for translating, and making available to patients upon their request or the request of their authorized representatives, copies of the statement of Patient Billing Rights in each of the non-English languages most commonly used in the service area of the hospital, in accordance with standards promulgated by rule of the Attorney General.

(d) The statement of Patient Billing Rights shall be posted on the website of the Attorney General and of each hospital. A hospital shall prominently post a sign containing the statement of Patient Billing Rights in each patient admission and discharge area. A hospital's postings on its website and at each admission and discharge area shall be in each of the non-English languages most commonly used in the service area of the hospital, in accordance with standards promulgated by rule of the Attorney General.

ARTICLE 30. IMPLEMENTATION AND ENFORCEMENT

Section 30-5. Administration. The Attorney General is responsible for administering and ensuring compliance with this Act, including development of any rules and forms necessary for the implementation and enforcement of this Act. The Illinois Administrative Procedure Act applies to all rules promulgated by Attorney General under this Act.

Section 30-10. Complaints. The Attorney General shall develop and implement a process for receiving and handling complaints from individuals regarding possible violations of this Act.

Section 30-15. Investigations. The Attorney General may conduct any investigation deemed necessary regarding possible violations of this Act by any hospital including, without limitation, the issuance of subpoenas to:

(1) require the hospital to file a statement or report or answer interrogatories in writing as to all information relevant to the alleged violations;

(2) examine under oath any person in connection with the alleged violations; and

(3) examine any record, book, document, account, or paper necessary to investigate the alleged violations.

Section 30-20. Injunctive relief; monetary penalties.

(a) If the Attorney General determines that there is a reason to believe that any hospital has violated the Act, the Attorney General may bring an action in the name of the People of the State against the hospital to obtain temporary, preliminary, or permanent injunctive relief for any act, policy, or practice by the hospital that violates this Act. The Attorney General may seek the removal and replacement of any director, officer, agent, or employee of any hospital who has approved, authorized, or acquiesced, directly or indirectly, in a violation of this Act. The Attorney General may also seek the assessment of one or more of the following civil monetary penalties in any action filed under this Act:

(1) For any hospital that fails to provide information to a patient as required under this Act, a civil penalty of $1,000 per violation.

(2) For any hospital that violates any other provision of this Act, a civil penalty of $10,000 per violation.

(b) In the event a court grants a final order of relief against any hospital for violation of this Act, the Attorney General shall, after all appeal rights have been exhausted, refer the hospital to the Illinois Department of Public Health for possible adverse licensure action under the Hospital Licensing Act.

Section 30-25. Limitations. Nothing in this Act shall be used by any private or public payor as a basis for reducing the third-party payor's rates, policies, or usual and customary charges for any health care service. Nothing in this Act shall be construed as imposing an obligation on a hospital to provide any particular service or treatment to an uninsured patient. Nothing in this Act shall be construed as imposing an obligation on a hospital to file a lawsuit to collect payment on a patient's bill. This Act establishes new and additional legal obligations for all hospitals in the State of Illinois. Nothing in this Act shall be construed as relieving or reducing any hospital of any other legal obligation under the Illinois Constitution or under any other statute or the common law including, without limitation, obligations of hospitals to furnish charity care or community benefits. No provision of this Act shall derogate from the common law or statutory authority of the Attorney General, nor shall any provision be construed as a limitation on the common law or statutory authority of the Attorney General to investigate hospitals or initiate enforcement actions against them including, without limitation, the authority to investigate at any time charitable trusts for the purpose of determining and ascertaining whether they are being administered in accordance with Illinois law and with the terms and purposes thereof.

Section 30-30. Home rule. A home rule unit must not regulate hospitals in a manner inconsistent with the provisions of this Act. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 30-35. Hospital Fair Billing and Collection Practices Act Enforcement Fund. There is hereby created the Hospital Fair Billing and Collection Practices Act Enforcement Fund as a special fund in the State Treasury. All civil monetary penalties imposed as a result of any action filed under this Act shall be deposited into the Fund. Monies in the Fund shall be allocated, subject to appropriation, to the Office of the Attorney General for enforcement of this Act.

ARTICLE 90. AMENDATORY PROVISIONS

Section 90-3. The State Finance Act is amended by adding Section 5.663 as follows:

(30 ILCS 105/5.663 new)

Sec. 5.663. The Hospital Fair Billing and Collection Practices Act Enforcement Fund.

Section 90-5. The University of Illinois Hospital Act is amended by changing Section 5 as follows:

(110 ILCS 330/5) (from Ch. 23, par. 1375)

Sec. 5. (a) The University may establish and collect charges for hospital services rendered in the University of Illinois Hospital or in connection with a University health care program. However, with respect to health care professional services rendered in connection with a University health care program at the University of Illinois Hospital or elsewhere by the Doctors of Medicine, the Doctors of Dentistry, or other health care professionals who are members of the University faculty, charges for such professional services shall not be established or collected by the University or the University of Illinois Hospital but may be by said members of said faculty who render such services under a plan or plans organized and administered by them. All such charges shall be deposited in a special fund or funds in the treasury of the University. The billing, collecting and disbursing of any such fund shall remain exclusively under the supervision and control of such faculty under a plan or plans established by them for the general benefit and support of University programs and activities related to the health professions, provided no charges may be made or collected until such plan has been approved by the University. However, no person shall make or collect a personal or professional charge for his own account for treating, caring for or nursing a patient in the University of Illinois Hospital (other than health care professional services provided at the University of Illinois Hospital by non-salaried adjunct University faculty who are licensed dentists or physicians licensed to practice medicine in all its branches members) or in connection with a University health care program. Nothing herein shall prevent the University from approving a plan under which any such fund in the University treasury may be utilized in paying the University salaries of such faculty members, or from assisting in the billing and collection of professional charges if all University costs in connection therewith are paid from the charges so collected.

(b) The University's collection of charges under this Section is subject to the Hospital Fair Billing and Collection Practices Act.

(Source: P.A. 91-206, eff. 7-20-99; 92-760, eff. 8-2-02.)

Section 90-99. The Hospital Licensing Act is amended by changing Section 7 as follows:

(210 ILCS 85/7) (from Ch. 111 1/2, par. 148)

Sec. 7. (a) The Director after notice and opportunity for hearing to the applicant or licensee may deny, suspend, or revoke a permit to establish a hospital or deny, suspend, or revoke a license to open, conduct, operate, and maintain a hospital in any case in which he finds that there has been a substantial failure to comply with the provisions of this Act, the Hospital Report Card Act, or the Illinois Adverse Health Care Events Reporting Law of 2005, or the Hospital Fair Billing and Collection Practices Act or the standards, rules, and regulations established by virtue of any of those Acts.

(b) Such notice shall be effected by registered mail or by personal service setting forth the particular reasons for the proposed action and fixing a date, not less than 15 days from the date of such mailing or service, at which time the applicant or licensee shall be given an opportunity for a hearing. Such hearing shall be conducted by the Director or by an employee of the Department designated in writing by the Director as Hearing Officer to conduct the hearing. On the basis of any such hearing, or upon default of the applicant or licensee, the Director shall make a determination specifying his findings and conclusions. In case of a denial to an applicant of a permit to establish a hospital, such determination shall specify the subsection of Section 6 under which the permit was denied and shall contain findings of fact forming the basis of such denial. A copy of such determination shall be sent by registered mail or served personally upon the applicant or licensee. The decision denying, suspending, or revoking a permit or a license shall become final 35 days after it is so mailed or served, unless the applicant or licensee, within such 35 day period, petitions for review pursuant to Section 13.

(c) The procedure governing hearings authorized by this Section shall be in accordance with rules promulgated by the Department and approved by the Hospital Licensing Board. A full and complete record shall be kept of all proceedings, including the notice of hearing, complaint, and all other documents in the nature of pleadings, written motions filed in the proceedings, and the report and orders of the Director and Hearing Officer. All testimony shall be reported but need not be transcribed unless the decision is appealed pursuant to Section 13. A copy or copies of the transcript may be obtained by any interested party on payment of the cost of preparing such copy or copies.

(d) The Director or Hearing Officer shall upon his own motion, or on the written request of any party to the proceeding, issue subpoenas requiring the attendance and the giving of testimony by witnesses, and subpoenas duces tecum requiring the production of books, papers, records, or memoranda. All subpoenas and subpoenas duces tecum issued under the terms of this Act may be served by any person of full age. The fees of witnesses for attendance and travel shall be the same as the fees of witnesses before the Circuit Court of this State, such fees to be paid when the witness is excused from further attendance. When the witness is subpoenaed at the instance of the Director, or Hearing Officer, such fees shall be paid in the same manner as other expenses of the Department, and when the witness is subpoenaed at the instance of any other party to any such proceeding the Department may require that the cost of service of the subpoena or subpoena duces tecum and the fee of the witness be borne by the party at whose instance the witness is summoned. In such case, the Department in its discretion, may require a deposit to cover the cost of such service and witness fees. A subpoena or subpoena duces tecum issued as aforesaid shall be served in the same manner as a subpoena issued out of a court.

(e) Any Circuit Court of this State upon the application of the Director, or upon the application of any other party to the proceeding, may, in its discretion, compel the attendance of witnesses, the production of books, papers, records, or memoranda and the giving of testimony before the Director or Hearing Officer conducting an investigation or holding a hearing authorized by this Act, by an attachment for contempt, or otherwise, in the same manner as production of evidence may be compelled before the court.

(f) The Director or Hearing Officer, or any party in an investigation or hearing before the Department, may cause the depositions of witnesses within the State to be taken in the manner prescribed by law for like depositions in civil actions in courts of this State, and to that end compel the attendance of witnesses and the production of books, papers, records, or memoranda.

(Source: P.A. 93-563, eff. 1-1-04; 94-242, eff. 7-18-05.)

ARTICLE 99. EFFECTIVE DATE

Section 99-99. Effective date. This Act takes effect January 1, 2007.