State of Illinois
90th General Assembly
Legislation

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90_HB0408

      210 ILCS 85/10.4          from Ch. 111 1/2, par. 151.4
          Amends the Hospital Licensing Act to  define  "privilege"
      as   used   in  the  provisions  relating  to  medical  staff
      membership determinations.
                                                     LRB9000275DPcc
                                               LRB9000275DPcc
 1        AN ACT to amend the Hospital Licensing  Act  by  changing
 2    Section 10.4.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Hospital  Licensing  Act  is  amended  by
 6    changing Section 10.4 as follows:
 7        (210 ILCS 85/10.4) (from Ch. 111 1/2, par. 151.4)
 8        Sec. 10.4. Medical staff privileges.
 9        (a)  Any hospital licensed under this Act or any hospital
10    organized  under  the  University  of  Illinois  Hospital Act
11    shall, prior to the granting of any medical staff  privileges
12    to an applicant, or renewing a current medical staff member's
13    privileges,   request   of   the   Director  of  Professional
14    Regulation information concerning the  licensure  status  and
15    any  disciplinary  action  taken  against  the applicant's or
16    medical staff member's license, except for medical  personnel
17    who  enter  a  hospital  to  obtain  organs  and  tissues for
18    transplant from a  deceased  donor  in  accordance  with  the
19    Uniform  Anatomical  Gift  Act.  The Director of Professional
20    Regulation  shall  transmit,  in  writing  and  in  a  timely
21    fashion,  such  information  regarding  the  license  of  the
22    applicant or the medical staff member, including  the  record
23    of  imposition of any periods of supervision or monitoring as
24    a result of  alcohol  or  substance  abuse,  as  provided  by
25    Section  1-21 of the "Medical Practice Act of 1987", and such
26    information as may have  been  submitted  to  the  Department
27    indicating  that  the application or medical staff member has
28    been denied, or has surrendered, medical staff privileges  at
29    a  hospital  licensed  under  this  Act,  or  any  equivalent
30    facility  in another state or territory of the United States.
31    The Director of Professional Regulation shall define by  rule
                            -2-                LRB9000275DPcc
 1    the period for timely response to such requests.
 2        No   transmittal   of  information  by  the  Director  of
 3    Professional Regulation, under this Section shall be to other
 4    than  the   president,   chief   operating   officer,   chief
 5    administrative  officer,  or  chief of the medical staff of a
 6    hospital licensed under this Act, a hospital organized  under
 7    the  University  of  Illinois  Hospital  Act,  or  a hospital
 8    operated   by   the   United   States,   or   any   of    its
 9    instrumentalities.   The  information so transmitted shall be
10    afforded the same status as is information concerning medical
11    studies by Part 21 of Article  VIII  of  the  Code  of  Civil
12    Procedure, as now or hereafter amended.
13        (b)  All hospitals licensed under this Act, except county
14    hospitals as defined in subsection (c) of Section 15-1 of the
15    Illinois  Public Aid Code, shall comply with, and the medical
16    staff  bylaws  of  these  hospitals   shall   include   rules
17    consistent  with, the provisions of this Section in granting,
18    limiting, renewing, or denying medical staff  membership  and
19    clinical clinic staff privileges.
20             (1)  Minimum  procedures  for initial applicants for
21        medical staff membership shall include the following:
22                  (A)  Written   procedures   relating   to   the
23             acceptance and processing of initial applicants  for
24             medical staff membership.
25                  (B)  Written   procedures  to  be  followed  in
26             determining an applicant's qualifications for  being
27             granted medical staff membership and privileges.
28                  (C)  Written   criteria   to   be  followed  in
29             evaluating an applicant's qualifications.
30                  (D)  An evaluation of  an  applicant's  current
31             health   status   and   current  license  status  in
32             Illinois.
33                  (E)  A written response to each applicant  that
34             explains  the  reason  or  reasons  for  any adverse
                            -3-                LRB9000275DPcc
 1             decision (including all reasons based in whole or in
 2             part on the applicant's  medical  qualifications  or
 3             any other basis, including economic factors).
 4             (2)  Minimum  procedures  with  respect  to  medical
 5        staff  and  clinical  privilege determinations concerning
 6        current members of the medical staff  shall  include  the
 7        following:
 8                  (A)  A written notice of an adverse decision by
 9             the hospital governing board.
10                  (B)  An  explanation  of  the  reasons  for  an
11             adverse  decision including all reasons based on the
12             quality  of  medical  care  or  any   other   basis,
13             including economic factors.
14                  (C)  A  statement of the medical staff member's
15             right to request  a  fair  hearing  on  the  adverse
16             decision  before a hearing panel whose membership is
17             mutually agreed upon by the medical  staff  and  the
18             hospital  governing  board.  The hearing panel shall
19             have independent authority to  recommend  action  to
20             the  hospital  governing  board. Upon the request of
21             the medical staff member or the  hospital  governing
22             board,   the   hearing  panel  shall  make  findings
23             concerning the nature of each basis for any  adverse
24             decision recommended to and accepted by the hospital
25             governing board.
26                       (i)  Nothing   in  this  subparagraph  (C)
27                  limits a hospital's or medical staff's right to
28                  summarily suspend, without a prior  hearing,  a
29                  person's  medical  staff membership or clinical
30                  privileges if the continuation of practice of a
31                  medical staff member constitutes  an  immediate
32                  danger   to  the  public,  including  patients,
33                  visitors, and hospital employees and  staff.  A
34                  fair  hearing shall be commenced within 15 days
                            -4-                LRB9000275DPcc
 1                  after  the  suspension  and  completed  without
 2                  delay.
 3                       (ii)  Nothing  in  this  subparagraph  (C)
 4                  limits a medical staff's right  to  permit,  in
 5                  the medical staff bylaws, summary suspension of
 6                  membership or clinical privileges in designated
 7                  administrative  circumstances  as  specifically
 8                  approved  by  the  medical  staff.  This  bylaw
 9                  provision  must  specifically describe both the
10                  administrative circumstance that can result  in
11                  a  summary  suspension  and  the  length of the
12                  summary suspension. The opportunity for a  fair
13                  hearing  is  required  for  any  administrative
14                  summary  suspension. Any requested hearing must
15                  be commenced within 15 days after  the  summary
16                  suspension and completed without delay. Adverse
17                  decisions   other   than  suspension  or  other
18                  restrictions on the treatment or  admission  of
19                  patients may be imposed summarily and without a
20                  hearing    under    designated   administrative
21                  circumstances as specifically provided  for  in
22                  the  medical  staff  bylaws  as approved by the
23                  medical staff.
24                       (iii)  If a hospital exercises its  option
25                  to  enter  into  an exclusive contract and that
26                  contract  results  in  the  total  or   partial
27                  termination   or  reduction  of  medical  staff
28                  membership or clinical privileges of a  current
29                  medical   staff   member,  the  hospital  shall
30                  provide the affected medical  staff  member  60
31                  days  prior  notice of the effect on his or her
32                  medical  staff  membership  or  privileges.  An
33                  affected  medical  staff  member   desiring   a
34                  hearing   under   subparagraph   (C)   of  this
                            -5-                LRB9000275DPcc
 1                  paragraph (2) must request the  hearing  within
 2                  14  days  after  the  date  he  or  she  is  so
 3                  notified.   The   requested  hearing  shall  be
 4                  commenced and  completed  (with  a  report  and
 5                  recommendation  to  the  affected medical staff
 6                  member, hospital governing board,  and  medical
 7                  staff)  within  30  days  after the date of the
 8                  medical staff member's request. If agreed  upon
 9                  by  both  the  medical  staff  and the hospital
10                  governing board, the medical staff  bylaws  may
11                  provide for longer time periods.
12                  (D)  A  statement  of  the  member's  right  to
13             inspect  all pertinent information in the hospital's
14             possession with respect to the decision.
15                  (E)  A  statement  of  the  member's  right  to
16             present witnesses and other evidence at the  hearing
17             on the decision.
18                  (F)  A  written  notice and written explanation
19             of the decision resulting from the hearing.
20                  (G)  Notice given 15 days before implementation
21             of an adverse medical staff membership  or  clinical
22             privileges  decision based substantially on economic
23             factors.  This  notice  shall  be  given  after  the
24             medical  staff  member   exhausts   all   applicable
25             procedures  under this Section, including item (iii)
26             of subparagraph (C) of this paragraph (2), and under
27             the  medical  staff  bylaws  in   order   to   allow
28             sufficient time for the orderly provision of patient
29             care.
30                  (H)  Nothing  in  this  paragraph  (2)  of this
31             subsection (b) limits a medical staff member's right
32             to  waive,  in  writing,  the  rights  provided   in
33             subparagraphs  (A) through (G) of this paragraph (2)
34             of  this  subsection  (b)  upon  being  granted  the
                            -6-                LRB9000275DPcc
 1             written  exclusive  right  to   provide   particular
 2             services  at a hospital, either individually or as a
 3             member of a  group.  If  an  exclusive  contract  is
 4             signed by a representative of a group of physicians,
 5             a  waiver  contained  in the contract shall apply to
 6             all members of the group unless stated otherwise  in
 7             the contract.
 8             (3)  Every  adverse  medical  staff  membership  and
 9        clinical   privilege   decision  based  substantially  on
10        economic  factors  shall  be  reported  to  the  Hospital
11        Licensing Board before the decision takes effect.   These
12        reports  shall  not be disclosed in any form that reveals
13        the identity of any hospital or physician.  These reports
14        shall be utilized to  study  the  effects  that  hospital
15        medical staff membership and clinical privilege decisions
16        based  upon  economic  factors have on access to care and
17        the availability of  physician  services.   The  Hospital
18        Licensing  Board  shall  submit  an  initial study to the
19        Governor and the General Assembly by January 1, 1996, and
20        subsequent  reports  shall  be   submitted   periodically
21        thereafter.
22             (4)  As used in this Section:
23             "Adverse   decision"   means  a  decision  reducing,
24        restricting,  suspending,  revoking,  denying,   or   not
25        renewing medical staff membership or clinical privileges.
26             "Economic  factor"  means any information or reasons
27        for  decisions  unrelated   to   quality   of   care   or
28        professional competency.
29             "Privilege"  means  permission to provide medical or
30        other  patient  care  services  and  permission  to   use
31        hospital  resources,  including equipment, facilities and
32        personnel  that  are  necessary  to  effectively  provide
33        medical or other patient care services.  This  definition
34        shall  not  be construed to require a hospital to acquire
                            -7-                LRB9000275DPcc
 1        additional  equipment,  facilities,   or   personnel   to
 2        accommodate the granting of privileges.
 3    (Source: P.A. 88-654, eff. 1-1-95.)

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