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1 | AN ACT concerning health.
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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 Community Services Act is amended by | ||||||||||||||||||||||||
5 | changing Section 4 as follows:
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6 | (405 ILCS 30/4) (from Ch. 91 1/2, par. 904)
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7 | Sec. 4. Financing for Community Services. | ||||||||||||||||||||||||
8 | (a) The Department of Human Services
is authorized to
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9 | provide financial assistance to eligible private service | ||||||||||||||||||||||||
10 | providers,
corporations, local government entities or | ||||||||||||||||||||||||
11 | voluntary associations for the
provision of services to persons | ||||||||||||||||||||||||
12 | with mental illness, persons with a
developmental disability | ||||||||||||||||||||||||
13 | and alcohol and drug dependent persons living in the
community | ||||||||||||||||||||||||
14 | for the purpose of achieving the goals of this Act.
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15 | The Department shall utilize the following funding | ||||||||||||||||||||||||
16 | mechanisms for community
services:
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17 | (1) Purchase of Care Contracts: services purchased on a | ||||||||||||||||||||||||
18 | predetermined fee
per unit of service basis from private | ||||||||||||||||||||||||
19 | providers or governmental entities. Fee
per service rates | ||||||||||||||||||||||||
20 | are set by an established formula which covers some portion
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21 | of personnel, supplies, and other allowable costs, and | ||||||||||||||||||||||||
22 | which makes some
allowance for geographic variations in | ||||||||||||||||||||||||
23 | costs as well as for additional program
components.
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1 | (2) Grants: sums of money which the Department grants | ||||||
2 | to private providers or
governmental
entities pursuant to | ||||||
3 | the grant recipient's agreement to provide certain
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4 | services, as defined by departmental grant guidelines, to | ||||||
5 | an
approximate number of service
recipients. Grant levels | ||||||
6 | are set through consideration of personnel, supply and
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7 | other allowable costs, as well as other funds available to | ||||||
8 | the program.
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9 | (3) Other Funding Arrangements: funding mechanisms may | ||||||
10 | be established
on a pilot basis in order to examine the | ||||||
11 | feasibility of alternative financing
arrangements for the | ||||||
12 | provision of community services.
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13 | The Department shall strive to establish and maintain an | ||||||
14 | equitable system of
payment
which encourages providers to | ||||||
15 | improve their clients' capabilities for
independence and | ||||||
16 | reduces their reliance on community or State-operated
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17 | services. In accepting Department funds, providers shall | ||||||
18 | recognize
their responsibility to be
accountable to the | ||||||
19 | Department and the State for the delivery of services
which are | ||||||
20 | consistent
with the philosophies and goals of this Act and the | ||||||
21 | rules and regulations
promulgated under it.
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22 | (b) If a new governmental mandate effective on or after | ||||||
23 | July 1, 2007 (i) is imposed upon a private service provider, | ||||||
24 | corporation, local government entity, or voluntary association | ||||||
25 | providing services to persons with mental illness, persons with | ||||||
26 | a developmental disability, or persons with an alcohol or drug |
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1 | dependency living in the community and (ii) has or will have a | ||||||
2 | material adverse financial impact on the private service | ||||||
3 | provider, corporation, local government entity, or voluntary | ||||||
4 | association, the Department shall negotiate a contract | ||||||
5 | amendment with the private service provider, corporation, | ||||||
6 | local government entity, or voluntary association to increase | ||||||
7 | the maximum obligation amount or unit price to offset the | ||||||
8 | material adverse financial impact of the new governmental | ||||||
9 | mandate, provided that the private service provider, | ||||||
10 | corporation, local government entity, or voluntary association | ||||||
11 | furnishes substantial evidence to the Department of such | ||||||
12 | material adverse financial impact along with a request to | ||||||
13 | renegotiate based on a new governmental mandate. | ||||||
14 | Any private service provider, corporation, local | ||||||
15 | government entity, or voluntary association aggrieved by a | ||||||
16 | decision of the Department denying or failing to negotiate a | ||||||
17 | contract amendment to remedy a material adverse impact of a new | ||||||
18 | governmental mandate pursuant to this subsection may appeal | ||||||
19 | such decision by requesting an administrative hearing before an | ||||||
20 | administrative law judge. A private service provider, | ||||||
21 | corporation, local government entity, or voluntary | ||||||
22 | association's request for a contract amendment shall, for | ||||||
23 | purposes of appeal, be deemed to have been denied if a | ||||||
24 | determination is not received from the Department within 30 | ||||||
25 | days after the Department's receipt of the request. A private | ||||||
26 | service provider, corporation, local government entity, or |
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1 | voluntary association may appeal an adverse final | ||||||
2 | administrative decision of the Department pursuant to the | ||||||
3 | Administrative Review Law. | ||||||
4 | For the purposes of this subsection: | ||||||
5 | "New governmental mandate" means a statutory requirement, | ||||||
6 | administrative rule, regulation, assessment, executive order, | ||||||
7 | judicial order, or other governmental requirement that (i) was | ||||||
8 | not in effect when a contract was originally entered into by | ||||||
9 | the Department and a private service provider, corporation, | ||||||
10 | local government entity, or voluntary association and (ii) | ||||||
11 | directly or indirectly imposes an obligation upon the private | ||||||
12 | service provider, corporation, local government entity, or | ||||||
13 | voluntary association to take any action or to refrain from | ||||||
14 | taking any action in order to fulfill its contractual duties. | ||||||
15 | "Material adverse financial impact" means: (1) an increase | ||||||
16 | in the reasonable costs to the private service provider, | ||||||
17 | corporation, local government entity, or voluntary association | ||||||
18 | in performing a contract with the Department of the lesser of | ||||||
19 | (i) 3% percent of the maximum obligation amount or unit price | ||||||
20 | of the contract or (ii) $5,000 in the aggregate as a result of | ||||||
21 | all such mandates in effect during the contract year; or (2) an | ||||||
22 | action that affects the core purpose and primary intent of the | ||||||
23 | contract.
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24 | (Source: P.A. 88-380; 89-507, eff. 7-1-97.)
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25 | Section 99. Effective date. This Act takes effect July 1, | ||||||
26 | 2007.
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