Full Text of HB6769 93rd General Assembly
HB6769eng 93RD GENERAL ASSEMBLY
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| AN ACT concerning health facilities.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Health Facilities Planning Act is | 5 |
| amended by changing Section 3 and by adding Section 8.5 as | 6 |
| follows:
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| (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
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| (Section scheduled to be repealed on July 1, 2008)
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| Sec. 3. Definitions. As used in this Act:
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| "Health care facilities" means and includes
the following | 11 |
| facilities and organizations:
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| 1. An ambulatory surgical treatment center required to | 13 |
| be licensed
pursuant to the Ambulatory Surgical Treatment | 14 |
| Center Act;
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| 2. An institution, place, building, or agency required | 16 |
| to be licensed
pursuant to the Hospital Licensing Act;
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| 3. Skilled and intermediate long term care facilities | 18 |
| licensed under the
Nursing
Home Care Act;
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| 4. Hospitals, nursing homes, ambulatory surgical | 20 |
| treatment centers, or
kidney disease treatment centers
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| maintained by the State or any department or agency | 22 |
| thereof;
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| 5. Kidney disease treatment centers, including a | 24 |
| free-standing
hemodialysis unit; and
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| 6. An institution, place, building, or room used for | 26 |
| the performance of
outpatient surgical procedures that is | 27 |
| leased, owned, or operated by or on
behalf of an | 28 |
| out-of-state facility.
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| No federally owned facility shall be subject to the | 30 |
| provisions of this
Act, nor facilities used solely for healing | 31 |
| by prayer or spiritual means.
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| No facility licensed under the Supportive Residences |
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| Licensing Act or the
Assisted Living and Shared Housing Act
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| shall be subject to the provisions of this Act.
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| A facility designated as a supportive living facility that | 4 |
| is in good
standing with the demonstration project established | 5 |
| under Section 5-5.01a of
the Illinois Public Aid Code shall not | 6 |
| be subject to the provisions of this
Act.
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| This Act does not apply to facilities granted waivers under | 8 |
| Section 3-102.2
of the Nursing Home Care Act. However, if a | 9 |
| demonstration project under that
Act applies for a certificate
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| of need to convert to a nursing facility, it shall meet the | 11 |
| licensure and
certificate of need requirements in effect as of | 12 |
| the date of application.
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| This Act shall not apply to the closure of an entity or a | 14 |
| portion of an
entity licensed under the Nursing Home Care Act | 15 |
| that elects to convert, in
whole or in part, to an assisted | 16 |
| living or shared housing establishment
licensed under the | 17 |
| Assisted Living and Shared Housing Act.
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| With the exception of those health care facilities | 19 |
| specifically
included in this Section, nothing in this Act | 20 |
| shall be intended to
include facilities operated as a part of | 21 |
| the practice of a physician or
other licensed health care | 22 |
| professional, whether practicing in his
individual capacity or | 23 |
| within the legal structure of any partnership,
medical or | 24 |
| professional corporation, or unincorporated medical or
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| professional group. Further, this Act shall not apply to | 26 |
| physicians or
other licensed health care professional's | 27 |
| practices where such practices
are carried out in a portion of | 28 |
| a health care facility under contract
with such health care | 29 |
| facility by a physician or by other licensed
health care | 30 |
| professionals, whether practicing in his individual capacity
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| or within the legal structure of any partnership, medical or
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| professional corporation, or unincorporated medical or | 33 |
| professional
groups. This Act shall apply to construction or
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| modification and to establishment by such health care facility | 35 |
| of such
contracted portion which is subject to facility | 36 |
| licensing requirements,
irrespective of the party responsible |
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| for such action or attendant
financial obligation.
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| "Person" means any one or more natural persons, legal | 3 |
| entities,
governmental bodies other than federal, or any | 4 |
| combination thereof.
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| "Consumer" means any person other than a person (a) whose | 6 |
| major
occupation currently involves or whose official capacity | 7 |
| within the last
12 months has involved the providing, | 8 |
| administering or financing of any
type of health care facility, | 9 |
| (b) who is engaged in health research or
the teaching of | 10 |
| health, (c) who has a material financial interest in any
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| activity which involves the providing, administering or | 12 |
| financing of any
type of health care facility, or (d) who is or | 13 |
| ever has been a member of
the immediate family of the person | 14 |
| defined by (a), (b), or (c).
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| "State Board" means the Health Facilities Planning Board.
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| "Construction or modification" means the establishment, | 17 |
| erection,
building, alteration, reconstruction, modernization, | 18 |
| improvement,
extension, discontinuation, change of ownership, | 19 |
| of or by a health care
facility, or the purchase or acquisition | 20 |
| by or through a health care facility
of
equipment or service | 21 |
| for diagnostic or therapeutic purposes or for
facility | 22 |
| administration or operation, or any capital expenditure made by
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| or on behalf of a health care facility which
exceeds the | 24 |
| capital expenditure minimum; however, any capital expenditure
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| made by or on behalf of a health care facility for the | 26 |
| construction or
modification of a facility licensed under the | 27 |
| Assisted Living and Shared
Housing Act shall be excluded from | 28 |
| any obligations under this Act.
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| "Establish" means the construction of a health care | 30 |
| facility or the
replacement of an existing facility on another | 31 |
| site.
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| "Major medical equipment" means medical equipment which is | 33 |
| used for the
provision of medical and other health services and | 34 |
| which costs in excess
of the capital expenditure minimum, | 35 |
| except that such term does not include
medical equipment | 36 |
| acquired
by or on behalf of a clinical laboratory to provide |
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| clinical laboratory
services if the clinical laboratory is | 2 |
| independent of a physician's office
and a hospital and it has | 3 |
| been determined under Title XVIII of the Social
Security Act to | 4 |
| meet the requirements of paragraphs (10) and (11) of Section
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| 1861(s) of such Act. In determining whether medical equipment | 6 |
| has a value
in excess of the capital expenditure minimum, the | 7 |
| value of studies, surveys,
designs, plans, working drawings, | 8 |
| specifications, and other activities
essential to the | 9 |
| acquisition of such equipment shall be included.
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| "Capital Expenditure" means an expenditure: (A) made by or | 11 |
| on behalf of
a health care facility (as such a facility is | 12 |
| defined in this Act); and
(B) which under generally accepted | 13 |
| accounting principles is not properly
chargeable as an expense | 14 |
| of operation and maintenance, or is made to obtain
by lease or | 15 |
| comparable arrangement any facility or part thereof or any
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| equipment for a facility or part; and which exceeds the capital | 17 |
| expenditure
minimum.
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| For the purpose of this paragraph, the cost of any studies, | 19 |
| surveys, designs,
plans, working drawings, specifications, and | 20 |
| other activities essential
to the acquisition, improvement, | 21 |
| expansion, or replacement of any plant
or equipment with | 22 |
| respect to which an expenditure is made shall be included
in | 23 |
| determining if such expenditure exceeds the capital | 24 |
| expenditures minimum.
Donations of equipment
or facilities to a | 25 |
| health care facility which if acquired directly by such
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| facility would be subject to review under this Act shall be | 27 |
| considered capital
expenditures, and a transfer of equipment or | 28 |
| facilities for less than fair
market value shall be considered | 29 |
| a capital expenditure for purposes of this
Act if a transfer of | 30 |
| the equipment or facilities at fair market value would
be | 31 |
| subject to review.
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| "Capital expenditure minimum" means $6,000,000, which | 33 |
| shall be annually
adjusted to reflect the increase in | 34 |
| construction costs due to inflation, for major medical | 35 |
| equipment and for all other
capital expenditures; provided, | 36 |
| however, that when a capital expenditure is
for the |
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| construction or modification of a health and fitness center, | 2 |
| "capital
expenditure minimum" means the capital expenditure | 3 |
| minimum for all other
capital expenditures in effect on March | 4 |
| 1, 2000, which shall be annually
adjusted to reflect the | 5 |
| increase in construction costs due to inflation.
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| "Non-clinical service area" means an area (i) for the | 7 |
| benefit of the
patients, visitors, staff, or employees of a | 8 |
| health care facility and (ii) not
directly related to the | 9 |
| diagnosis, treatment, or rehabilitation of persons
receiving | 10 |
| services from the health care facility. "Non-clinical service | 11 |
| areas"
include, but are not limited to, chapels; gift shops; | 12 |
| news stands; computer
systems; tunnels, walkways, and | 13 |
| elevators; telephone systems; projects to
comply with life | 14 |
| safety codes; educational facilities; student housing;
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| patient, employee, staff, and visitor dining areas; | 16 |
| administration and
volunteer offices; modernization of | 17 |
| structural components (such as roof
replacement and masonry | 18 |
| work); boiler repair or replacement; vehicle
maintenance and | 19 |
| storage facilities; parking facilities; mechanical systems for
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| heating, ventilation, and air conditioning; loading docks; and | 21 |
| repair or
replacement of carpeting, tile, wall coverings, | 22 |
| window coverings or treatments,
or furniture. Solely for the | 23 |
| purpose of this definition, "non-clinical service
area" does | 24 |
| not include health and fitness centers.
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| "Areawide" means a major area of the State delineated on a
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| geographic, demographic, and functional basis for health | 27 |
| planning and
for health service and having within it one or | 28 |
| more local areas for
health planning and health service. The | 29 |
| term "region", as contrasted
with the term "subregion", and the | 30 |
| word "area" may be used synonymously
with the term "areawide".
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| "Local" means a subarea of a delineated major area that on | 32 |
| a
geographic, demographic, and functional basis may be | 33 |
| considered to be
part of such major area. The term "subregion" | 34 |
| may be used synonymously
with the term "local".
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| "Areawide health planning organization" or "Comprehensive | 36 |
| health
planning organization" means the health systems agency |
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| designated by the
Secretary, Department of Health and Human | 2 |
| Services or any successor agency.
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| "Local health planning organization" means those local | 4 |
| health
planning organizations that are designated as such by | 5 |
| the areawide
health planning organization of the appropriate | 6 |
| area.
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| "Physician" means a person licensed to practice in | 8 |
| accordance with
the Medical Practice Act of 1987, as amended.
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| "Licensed health care professional" means a person | 10 |
| licensed to
practice a health profession under pertinent | 11 |
| licensing statutes of the
State of Illinois.
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| "Director" means the Director of the Illinois Department of | 13 |
| Public Health.
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| "Agency" means the Illinois Department of Public Health.
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| "Comprehensive health planning" means health planning | 16 |
| concerned with
the total population and all health and | 17 |
| associated problems that affect
the well-being of people and | 18 |
| that encompasses health services, health
manpower, and health | 19 |
| facilities; and the coordination among these and
with those | 20 |
| social, economic, and environmental factors that affect | 21 |
| health.
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| "Alternative health care model" means a facility or program | 23 |
| authorized
under the Alternative Health Care Delivery Act.
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| "Out-of-state facility" means a person that is both (i) | 25 |
| licensed as a
hospital or as an ambulatory surgery center under | 26 |
| the laws of another state
or that
qualifies as a hospital or an | 27 |
| ambulatory surgery center under regulations
adopted pursuant | 28 |
| to the Social Security Act and (ii) not licensed under the
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| Ambulatory Surgical Treatment Center Act, the Hospital | 30 |
| Licensing Act, or the
Nursing Home Care Act. Affiliates of | 31 |
| out-of-state facilities shall be
considered out-of-state | 32 |
| facilities. Affiliates of Illinois licensed health
care | 33 |
| facilities 100% owned by an Illinois licensed health care | 34 |
| facility, its
parent, or Illinois physicians licensed to | 35 |
| practice medicine in all its
branches shall not be considered | 36 |
| out-of-state facilities. Nothing in
this definition shall be
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| construed to include an office or any part of an office of a | 2 |
| physician licensed
to practice medicine in all its branches in | 3 |
| Illinois that is not required to be
licensed under the | 4 |
| Ambulatory Surgical Treatment Center Act.
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| "Change of ownership of a health care facility" means a | 6 |
| change in the
person
who has ownership or
control of a health | 7 |
| care facility's physical plant and capital assets. A change
in | 8 |
| ownership is indicated by
the following transactions: sale, | 9 |
| transfer, acquisition, lease, change of
sponsorship, or other | 10 |
| means of
transferring control.
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| "Related person" means any person that: (i) is at least 50% | 12 |
| owned, directly
or indirectly, by
either the health care | 13 |
| facility or a person owning, directly or indirectly, at
least | 14 |
| 50% of the health
care facility; or (ii) owns, directly or | 15 |
| indirectly, at least 50% of the
health care facility.
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| "Charity care" means care provided by a health care | 17 |
| facility for which the provider does not expect to receive | 18 |
| payment from the patient or a third-party payer.
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| (Source: P.A. 93-41, eff. 6-27-03.)
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| (20 ILCS 3960/8.5 new) | 21 |
| Sec. 8.5. Certificate of exemption for change of ownership | 22 |
| of a health care facility; public notice and public hearing. | 23 |
| (a) Upon a finding by the Department of Public Health that | 24 |
| an application for a change of ownership is complete, the | 25 |
| Department of Public Health shall publish a legal notice on 3 | 26 |
| consecutive days in a newspaper of general circulation in the | 27 |
| area or community to be affected and afford the public an | 28 |
| opportunity to request a hearing. If the application is for a | 29 |
| facility located in a Metropolitan Statistical Area, an | 30 |
| additional legal notice shall be published in a newspaper of | 31 |
| limited circulation, if one exists, in the area in which the | 32 |
| facility is located. If the newspaper of limited circulation is | 33 |
| published on a daily basis, the additional legal notice shall | 34 |
| be published on 3 consecutive days. The legal notice shall also | 35 |
| be posted on the Illinois Health Facilities Planning Board's |
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| web site and sent to the State Representative and State Senator | 2 |
| of the district in which the health care facility is located. | 3 |
| The Department of Public Health shall not find that an | 4 |
| application for change of ownership of a hospital is complete | 5 |
| without a signed certification that for a period of 2 years | 6 |
| after the change of ownership transaction is effective, the | 7 |
| hospital will not adopt a charity care policy that is
more | 8 |
| restrictive than the policy in effect during the year prior to | 9 |
| the transaction. | 10 |
| For the purposes of this subsection, "newspaper of limited | 11 |
| circulation" means a newspaper intended to serve a particular | 12 |
| or defined population of a specific geographic area within a | 13 |
| Metropolitan Statistical Area such as a municipality, town, | 14 |
| village, township, or community area, but does not include | 15 |
| publications of professional and trade associations.
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| (b) If a public hearing is requested, it shall be held at | 17 |
| least 15 days but no more than 30 days after the date of | 18 |
| publication of the legal notice in the community in which the | 19 |
| facility is located. The hearing shall be held in a place of | 20 |
| reasonable size and accessibility and a full and complete | 21 |
| written transcript of the proceedings shall be made. The | 22 |
| applicant shall provide a summary of the proposed change of | 23 |
| ownership for distribution at the public hearing.
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