SB2840 94TH GENERAL ASSEMBLY

LRB094 19078 LCT 54585 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2840

Introduced 1/20/2006, by Sen. Kwame Raoul

SYNOPSIS AS INTRODUCED:

New Act

Creates the Not-for-Profit Hospital Community Reinvestment Act. Prohibits a hospital system from making capital investments, investments in diagnostic equipment, or maintenance expenditures that result in disparities in health care. Requires a hospital to submit the listed information for evaluation by the Department of Public Health. Provides that the Department shall evaluate the annual reports to determine if a hospital system is engaging in a capital and equipment investment policy that results in health care disparities. Requires the Department to issue a summary report for each hospital system with one of the listed evaluation statements included. Provides that the Department shall make copies of the summary evaluations available to the public. Requires each hospital system to make copies of the report card and the summary evaluation for that hospital available at the main information desk or reception area of each of its facilities and to post a summary of the evaluation in a conspicuous public place at each of its facilities. Provides for community remediation plans for a hospital system that is underinvesting in facilities that serve minority populations. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning health care.

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

Section 1. Short title. This Act may be cited as the Not-for-Profit Hospital Community Reinvestment Act.

Section 5. Findings. The General Assembly finds that:

(1) Health care is fundamental to a person's well-being.

(2) Illness does not discriminate on the basis of a person's race or national origin.

(3) Recent research has shown that there are significant disparities in health outcomes for racial and ethnic minorities, even when adjusted for insurance status and income.

(4) Access to health care facilities and quality treatment should not be limited based on a person's race or national origin.

Section 10. Definitions. As used in this Act:

"Department" means the Department of Public Health.

"Director" means the Director of Public Health.

"Hospital system" means any person or corporation that holds a controlling ownership interest in more than one facility holding a hospital license under the Hospital Licensing Act.

Section 15. Nondiscrimination in health care capital investment and operations. It is unlawful for a hospital system to make capital investments, investments in diagnostic equipment, or maintenance expenditures that result in disparities in health care.

Section 20. Annual written evaluations.

(a) Hospital systems must submit the following information annually for evaluation by the Department:

(1) Information on the race, gender, and census tract of patients served at each facility.

(2) An inventory of facilities, including age and size of each facility.

(3) A list of capital expenditures and maintenance expenditures at each facility.

(4) An inventory of diagnostic equipment at each facility.

(5) A list of expenditures on diagnostic equipment at each facility.

(b) The Department shall evaluate these annual reports to determine if a hospital system is engaging in a capital and equipment investment policy that results in health care disparities.

(c) The Department shall issue a summary report for each hospital system. The summary report shall include one of the following evaluation ratings:

(1) "Outstanding record of investment in community health needs".

(2) "Satisfactory record of investment in community health needs".

(3) "Needs to improve record of investment in community health needs".

(4) "Substantial noncompliance in meeting community health needs".

Section 25. Public disclosure. The Department shall make copies of the summary evaluations available to the public. The Department shall also compile the results of the evaluations in an annual report card on hospital investing. Each hospital system shall make copies of the report card and the summary evaluation for that hospital available at the main information desk or reception area of each of its facilities. Each hospital shall also post a summary of the evaluation in a conspicuous public place at each of its facilities.

Section 30. Community remediation plan. If the Department finds that a hospital merits the rating "substantial noncompliance in meeting community health needs", the Director may order a community remediation plan. The Board of Directors of the hospital system and hospital community reinvestment committee consisting of 3 members from community organizations appointed by the Director, a designee of the Director, and the members of the General Assembly in whose districts the affected hospitals are located shall meet to develop a remediation plan designed to increase investments in the affected service areas. If the Board of Directors fails to agree to a remediation plan, the hospital system and the hospital community reinvestment committee may provide a report of their meeting to the Director. Based on this report, the Director may change the hospital system's rating.

Section 35. Rules. The Department of Public Health shall promulgate rules to ensure a uniform accounting for spending and maintenance costs.

Section 99. Effective date. This Act takes effect upon becoming law.