HB3710 101ST GENERAL ASSEMBLY

LRB101 08787 CPF 53874 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3710

Introduced , by Rep. Deb Conroy

SYNOPSIS AS INTRODUCED:

210 ILCS 45/3-304.2
210 ILCS 45/3-501	from Ch. 111 1/2, par. 4153-501

Amends the Nursing Home Care Act. Replaces provisions concerning designation of distressed facilities with language providing that: by January 1, 2021, and quarterly thereafter, the Department of Public Health shall generate and publish a list of no more than 10 distressed facilities at any one time; the facilities shall be selected using criteria established by rule for both certified and noncertified facilities and that certified facilities shall be selected from the Centers for Medicare and Medicaid Services' Special Focus Facility Candidate List; the Department shall notify each facility within 30 days of that facility's distressed designation and that a facility has 30 days after that notification to register an appeal; the Department may, using criteria established by rule, place a monitor in a facility designated as a distressed facility; the Department shall notify a facility at least 30 days prior to placement of a monitor in the facility and that, if any deficiencies or violations have not been corrected within 30 days of being publicly designated as a distressed facility, the facility shall develop and assist in the implementation of a plan of improvement; and once a facility has proven to be without health deficiencies for 12 months it shall be removed from the distressed facilities list. Makes other changes.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

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

Section 5. The Nursing Home Care Act is amended by changing Sections 3-304.2 and 3-501 as follows:

(210 ILCS 45/3-304.2)

Sec. 3-304.2. Designation of distressed facilities.

(a) By January 1, 2021 May 1, 2011, and quarterly thereafter, the Department shall generate and publish quarterly a list of no more than 10 distressed facilities at any one time. The facilities shall be selected using criteria established by rule for both certified and noncertified facilities. Certified facilities shall be selected from the Centers for Medicare and Medicaid Services' Special Focus Facility Candidate List. Criteria for inclusion of certified facilities on the list shall be those used by the U.S. General Accounting Office in report 9-689, until such time as the Department by rule modifies the criteria.

(b) (Blank). In deciding whether and how to modify the criteria used by the General Accounting Office, the Department shall complete a test run of any substitute criteria to determine their reliability by comparing the number of facilities identified as distressed against the number of distressed facilities generated using the criteria contained in the General Accounting Office report. The Department may not adopt substitute criteria that generate fewer facilities with a distressed designation than are produced by the General Accounting Office criteria during the test run.

(c) The Department shall, by rule, adopt criteria to identify non-Medicaid-certified facilities that are distressed and shall publish this list quarterly beginning October 1, 2011.

(d) The Department shall notify each facility within 30 days of its distressed designation, and of the calculation on which it is based. A facility has 30 days after receipt of the notification to register an appeal of the distressed facility designation. The appeal may assert that the deficiencies serving as a basis for the designation have been corrected or substantially corrected and that the operator has made a good faith effort to complete the plan of corrections, or that errors were made by the Centers for Medicare and Medicaid in placing the facility on the Special Focus Facility Candidate List. The designation shall not be made public until the appeal process has been exhausted.

(e) The A distressed facility may contract with an independent consultant meeting criteria established by the Department. If the distressed facility does not seek the assistance of an independent consultant, the Department may, using criteria established by rule, shall place a monitor or a temporary manager in a the facility designated as a distressed facility, depending on the Department's assessment of the condition of the facility. The Department shall notify a facility at least 30 days before placing a monitor in that facility. The facility has 30 days after receipt of notification by the Department to appeal the placement of a monitor. The monitor shall not remain in the facility longer than 60 days unless a redetermination is made by the Department that the placement of the monitor is still warranted and evidence exists that the facility is not making a good faith effort to correct the deficiencies or violations that led to the facility's designation as a distressed facility.

(f) If any deficiencies or violations have not been corrected within 30 days after being publicly designated as a distressed facility, the facility shall Independent consultant. A facility that has been designated a distressed facility may contract with an independent consultant to develop and assist in the implementation of a plan of improvement to bring and keep the facility in compliance with this Act and, if applicable, with federal certification requirements. A facility that contracts with an independent consultant shall have 90 days to develop a plan of improvement and demonstrate a good faith effort at implementation, and another 90 days to achieve compliance and take whatever additional actions are called for in the improvement plan to correct the deficiencies or violations that led to its designation as a distressed facility maintain compliance. A facility that the Department determines has a plan of improvement likely to correct the deficiencies or violations bring and keep the facility in compliance and that has demonstrated good faith efforts at implementation within the first 90 days may be eligible to receive a grant under the Equity in Long-term Care Quality Act to assist it in achieving and maintaining compliance. Criteria for determining how the grant is awarded shall be established by the Department by rule. In this subsection, "independent" consultant means an individual who has no professional or financial relationship with the facility, any person with a reportable ownership interest in the facility, or any related parties. In this subsection, "related parties" has the meaning attributed to it in the instructions for completing Medicaid cost reports.

(f-5) Once a facility on the distressed facilities list has proven to be without health deficiencies above scope and severity level E, Life Safety Code deficiencies above scope and severity level F, or State violations above Type C for 12 months, it shall be removed from the distressed facilities list. A facility that fails to meet the criteria for removal solely because of a level F deficiency cited under Tag F371 of the federal requirements shall be removed from the distressed facilities list unless the Department is required to keep the facility on the list by criteria established by the Department by rule. Monitor and temporary managers. A distressed facility that does not contract with a consultant shall be assigned a monitor or a temporary manager at the Department's discretion. The cost of the temporary manager shall be paid by the facility. The temporary manager shall have the authority determined by the Department, which may grant the temporary manager any or all of the authority a court may grant a receiver. The temporary manager may apply to the Equity in Long-term Care Quality Fund for grant funds to implement the plan of improvement.

(g) (Blank). The Department shall by rule establish a mentor program for owners of distressed facilities.

(h) The Department shall by rule establish sanctions (in addition to those authorized elsewhere in this Article) against distressed facilities that are not in compliance with this Act and (if applicable) with federal certification requirements. Criteria for imposing sanctions shall take into account a facility's actions to address the violations and deficiencies that caused its designation as a distressed facility, and its compliance with this Act and with federal certification requirements (if applicable), subsequent to its designation as a distressed facility, including mandatory revocations if criteria can be agreed upon by the Department, resident advocates, and representatives of the nursing home profession. By February 1, 2022 February 1, 2011, the Department shall report to the General Assembly on the results of negotiations about creating criteria for mandatory license revocations of distressed facilities and make recommendations about any statutory changes it believes are appropriate to protect the health, safety, and welfare of nursing home residents.

(i) (Blank). The Department may establish by rule criteria for restricting the owner of a facility on the distressed list from acquiring additional skilled nursing facilities.

(Source: P.A. 96-1372, eff. 7-29-10; 97-813, eff. 7-13-12.)

(210 ILCS 45/3-501) (from Ch. 111 1/2, par. 4153-501)

Sec. 3-501. The Department may place an employee or agent to serve as a monitor in a facility or may petition the circuit court for appointment of a receiver for a facility, or both, when any of the following conditions exist:

(a) The facility is operating without a license;

(b) The Department has suspended, revoked or refused to renew the existing license of the facility;

(c) The facility is closing or has informed the Department that it intends to close and adequate arrangements for relocation of residents have not been made at least 30 days prior to closure;

(d) The Department determines that an emergency exists, whether or not it has initiated revocation or nonrenewal procedures, if because of the unwillingness or inability of the licensee to remedy the emergency the Department believes a monitor or receiver is necessary;

(e) The Department is notified that the facility is terminated or will not be renewed for participation in the federal reimbursement program under either Title XVIII or Title XIX of the Social Security Act; or

(f) The facility has been designated a distressed facility by the Department and the criteria set forth in subsection (e) and does not have a consultant employed pursuant to subsection (f) of Section 3-304.2 for placing and retaining a monitor have been met. and an acceptable plan of improvement, or the Department has reason to believe the facility is not complying with the plan of improvement. Nothing in this paragraph (f) shall preclude the Department from placing a monitor in a facility if otherwise justified by law.

As used in subsection (d) and Section 3-503, "emergency" means a threat to the health, safety or welfare of a resident that the facility is unwilling or unable to correct.

(Source: P.A. 96-1372, eff. 7-29-10.)