State of Illinois
90th General Assembly
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90_HB3410

      210 ILCS 3/20
      210 ILCS 3/30
      210 ILCS 3/35
      210 ILCS 3/35.1
      210 ILCS 3/36
          Amends the Alternative Health Care Delivery Act. Provides
      that the alternative health care delivery model demonstration
      program shall  include  recovery  care  center,  rather  than
      postsurgical  recovery  care  center, alternative health care
      models.  Requires one of the recovery care centers  to  be  a
      hospital  located  in  a rural area. Defines terms. Effective
      immediately.
                                                    LRB9008970JSgcA
                                              LRB9008970JSgcA
 1        AN ACT to amend the Alternative Health Care Delivery  Act
 2    by changing Sections 20, 30, 35, 35.1, and 36.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5. The Alternative Health Care  Delivery  Act  is
 6    amended  by  changing  Sections  20,  30, 35, 35.1, and 36 as
 7    follows:
 8        (210 ILCS 3/20)
 9        Sec. 20.  Board responsibilities.   The  State  Board  of
10    Health  shall  have  the  responsibilities  set forth in this
11    Section.
12        (a)  The Board shall investigate new health care delivery
13    models  and  recommend  to  the  Governor  and  the   General
14    Assembly, through the Department, those models that should be
15    authorized  as  alternative  health  care  models  for  which
16    demonstration   programs   should   be   initiated.   In  its
17    deliberations, the Board shall use the following criteria:
18             (1)  The  feasibility  of  operating  the  model  in
19        Illinois,  based on a review of the experience  in  other
20        states  including  the impact on health  professionals of
21        other health care programs or facilities.
22             (2)  The potential of the model  to  meet  an  unmet
23        need.
24             (3)  The  potential  of  the  model to reduce health
25        care costs to consumers, costs to third party payors, and
26        aggregate costs to the public.
27             (4)  The potential  of  the  model  to  maintain  or
28        improve  the  standards  of  health care delivery in some
29        measurable fashion.
30             (5)  The potential of the model to provide increased
31        choices or access for patients.
                            -2-               LRB9008970JSgcA
 1        (b)  The Board shall evaluate and make recommendations to
 2    the  Governor  and  the   General   Assembly,   through   the
 3    Department,   regarding   alternative   health   care   model
 4    demonstration  programs  established  under  this Act, at the
 5    midpoint  and  end  of  the  period  of  operation   of   the
 6    demonstration  programs.   The  report  shall  include,  at a
 7    minimum, the following:
 8             (1)  Whether  the  alternative  health  care  models
 9        improved  access  to   health  care  for  their   service
10        populations in the State.
11             (2)  The quality of care provided by the alternative
12        health   care  models  as  may  be  evidenced  by  health
13        outcomes,   surveillance   reports,   and  administrative
14        actions taken by the Department.
15             (3)  The cost and cost effectiveness to the  public,
16        third-party  payors,  and  government  of the alternative
17        health  care  models,  including  the  impact  of   pilot
18        programs  on  aggregate health care costs in the area. In
19        addition to any other information collected by the  Board
20        under   this   Section,  the  Board  shall  collect  from
21        postsurgical recovery care centers uniform  billing  data
22        substantially  the same as specified in Section 4-2(e) of
23        the Illinois Health Finance Reform Act.    To  facilitate
24        its  evaluation  of  that data, the Board shall forward a
25        copy of  the  data  to  the  Illinois  Health  Care  Cost
26        Containment  Council.   All  patient identifiers shall be
27        removed from the data before it is submitted to the Board
28        or Council.
29             (4)  The  impact  of  the  alternative  health  care
30        models on the health care system in that area,  including
31        changing  patterns  of  patient  demand  and utilization,
32        financial viability,  and  feasibility  of  operation  of
33        service in inpatient and alternative models in the area.
34             (5)  The  implementation  by alternative health care
                            -3-               LRB9008970JSgcA
 1        models of any special commitments made during application
 2        review to the Illinois Health Facilities Planning Board.
 3             (6)  The continuation, expansion, or modification of
 4        the alternative health care models.
 5        (c)  The  Board  shall  advise  the  Department  on   the
 6    definition  and  scope  of  alternative  health  care  models
 7    demonstration programs.
 8        (d)  In  carrying  out  its  responsibilities  under this
 9    Section, the Board shall seek the advice of other  Department
10    advisory  boards  or  committees  that may be impacted by the
11    alternative health care model or the proposed model of health
12    care delivery.  The Board shall also seek  input  from  other
13    interested   parties,   which   may  include  holding  public
14    hearings.
15        (e)  The Board shall otherwise advise the  Department  on
16    the administration of the Act as the Board deems appropriate.
17    (Source: P.A. 87-1188; 88-441.)
18        (210 ILCS 3/30)
19        Sec.   30.    Demonstration  program  requirements.   The
20    requirements  set  forth  in  this  Section  shall  apply  to
21    demonstration programs.
22        (a)  There shall be no more than:
23             (i)  3 subacute  care  hospital  alternative  health
24        care models in the City of Chicago (one of which shall be
25        located on a designated site and shall have been licensed
26        as  a  hospital under the Illinois Hospital Licensing Act
27        within the 10 years immediately  before  the  application
28        for a license);
29             (ii)  2  subacute  care  hospital alternative health
30        care models in the demonstration program for each of  the
31        following areas:
32                  (1)  Cook County outside the City of Chicago.
33                  (2)  DuPage,  Kane,  Lake,  McHenry,  and  Will
                            -4-               LRB9008970JSgcA
 1             Counties.
 2                  (3)  Municipalities  with  a population greater
 3             than 50,000 not located in the  areas  described  in
 4             item  (i)  of  subsection (a) and paragraphs (1) and
 5             (2) of item (ii) of subsection (a); and
 6             (iii)  4 subacute care hospital  alternative  health
 7        care models in the demonstration program for rural areas.
 8        In selecting among applicants for these licenses in rural
 9    areas,   the   Health   Facilities  Planning  Board  and  the
10    Department shall give preference to  hospitals  that  may  be
11    unable  for  economic reasons to provide continued service to
12    the community in which they are located unless  the  hospital
13    were to receive an alternative health care model license.
14        (a-5)  There  shall  be  no  more  than  a  total  of  12
15    postsurgical  recovery  care  center  alternative health care
16    models in the demonstration program, located as follows:
17             (1)  Two in the City of Chicago.
18             (2)  Two in Cook County outside the City of Chicago.
19        At least one of these shall be owned  or  operated  by  a
20        hospital devoted exclusively to caring for children.
21             (3)  Two in Kane, Lake, and McHenry Counties.
22             (4)  Four  in  municipalities  with  a population of
23        50,000 or more not located  in  the  areas  described  in
24        paragraphs  (1),  (2), and (3), 3 of which shall be owned
25        or operated by hospitals, at least 2 of  which  shall  be
26        located  in  counties  with  a  population  of  less than
27        175,000, according to the most  recent  decennial  census
28        for  which  data are available, and one of which shall be
29        owned or operated by  an  ambulatory  surgical  treatment
30        center.
31             (5)  Two  in  rural  areas,  both  of which shall be
32        owned or operated by hospitals.
33        There shall  be  no  postsurgical  recovery  care  center
34    alternative  health  care  models  located  in  counties with
                            -5-               LRB9008970JSgcA
 1    populations greater than 600,000 but less than  1,000,000.  A
 2    proposed  postsurgical  recovery care center must be owned or
 3    operated by a hospital if it is to be located within, or will
 4    primarily serve the residents of, a health  service  area  in
 5    which  more  than  60%  of  the  gross patient revenue of the
 6    hospitals within that health service area  are  derived  from
 7    Medicaid   and  Medicare,  according  to  the  most  recently
 8    available calendar year data from the  Illinois  Health  Care
 9    Cost  Containment  Council.   Nothing in this paragraph shall
10    preclude a hospital  and  an  ambulatory  surgical  treatment
11    center   from   forming  a  joint  venture  or  developing  a
12    collaborative agreement to  own  or  operate  a  postsurgical
13    recovery care center.
14        (a-10)  There  shall  be  no  more  than  a  total  of  8
15    children's respite care center alternative health care models
16    in  the  demonstration  program,  which  shall  be located as
17    follows:
18             (1)  One in the City of Chicago.
19             (2)  One in Cook County outside the City of Chicago.
20             (3)  A total of 2 in the area comprised  of  DuPage,
21        Kane, Lake, McHenry, and Will counties.
22             (4)  A   total   of   2  in  municipalities  with  a
23        population of 50,000 or more and    not  located  in  the
24        areas described in paragraphs (1), (2), or (3).
25             (5)  A  total of 2 in rural areas, as defined by the
26        Health Facilities Planning Board.
27        No more than one children's respite care model owned  and
28    operated  by  a  licensed skilled pediatric facility shall be
29    located in each of the areas designated  in  this  subsection
30    (a-10).
31        (b)  Alternative   health  care  models  shall  obtain  a
32    certificate of  need  from  the  Illinois  Health  Facilities
33    Planning  Board under the Illinois Health Facilities Planning
34    Act  before  receiving   a   license   by   the   Department.
                            -6-               LRB9008970JSgcA
 1    Alternative health care models in medically underserved areas
 2    shall receive priority in obtaining a certificate of need.
 3        (c)  An  alternative  health  care model license shall be
 4    issued for a period of one year and shall be annually renewed
 5    if the facility or program is in substantial compliance  with
 6    the  Department's  rules  adopted  under this Act. A licensed
 7    alternative  health  care  model  that  continues  to  be  in
 8    substantial  compliance   after   the   conclusion   of   the
 9    demonstration  program  shall be eligible for annual renewals
10    unless and until a different licensure program for that  type
11    of  health  care  model  is  established  by legislation. The
12    Department may issue a provisional license to any alternative
13    health care model that does not substantially comply with the
14    provisions of this Act and the rules adopted under  this  Act
15    if  (i) the Department finds that the alternative health care
16    model has  undertaken  changes  and  corrections  which  upon
17    completion  will  render the alternative health care model in
18    substantial compliance with this Act and rules and  (ii)  the
19    health  and  safety of the patients of the alternative health
20    care model will be protected during the period for which  the
21    provisional  license  is issued.  The Department shall advise
22    the licensee of the conditions under  which  the  provisional
23    license   is  issued,  including  the  manner  in  which  the
24    alternative health  care  model  fails  to  comply  with  the
25    provisions  of  this Act and rules, and the time within which
26    the changes and corrections  necessary  for  the  alternative
27    health  care  model to substantially comply with this Act and
28    rules shall be completed.
29        (d)  Alternative   health   care   models   shall    seek
30    certification  under  Titles  XVIII  and  XIX  of the federal
31    Social Security Act.  In addition,  alternative  health  care
32    models  shall  provide  charitable  care consistent with that
33    provided  by  comparable  health  care   providers   in   the
34    geographic area.
                            -7-               LRB9008970JSgcA
 1        (d-5)  The   Illinois   Department   of  Public  Aid,  in
 2    cooperation with the Illinois Department  of  Public  Health,
 3    shall  develop  and implement a reimbursement methodology for
 4    all facilities participating in  the  demonstration  program.
 5    The  Illinois Department of Public Aid shall keep a record of
 6    services  provided  under  the   demonstration   program   to
 7    recipients  of  medical  assistance under the Illinois Public
 8    Aid  Code  and  shall  submit  an  annual  report   of   that
 9    information to the Illinois Department of Public Health.
10        (e)  Alternative  health care models shall, to the extent
11    possible, link  and  integrate  their  services  with  nearby
12    health care facilities.
13        (f)  Each alternative health care model shall implement a
14    quality  assurance  program  with  measurable benefits and at
15    reasonable cost.
16    (Source: P.A. 88-441; 88-490; 88-670, eff.  12-2-94;  89-393,
17    eff. 8-20-95.)
18        (210 ILCS 3/35)
19        Sec.  35.   Alternative  health  care  models authorized.
20    Notwithstanding any other law to  the  contrary,  alternative
21    health   care   models  described  in  this  Section  may  be
22    established on a demonstration basis.
23             (1)  Alternative health care  model;  subacute  care
24        hospital.   A subacute care hospital is a designated site
25        which provides medical specialty care  for  patients  who
26        need  a  greater  intensity  or  complexity  of care than
27        generally provided in a skilled nursing facility but  who
28        no longer require acute hospital care. The average length
29        of  stay  for patients treated in subacute care hospitals
30        shall not be  less  than  20  days,  and  for  individual
31        patients,  the  expected  length  of  stay at the time of
32        admission shall not be less  than  10  days.   Variations
33        from  minimum  lengths  of  stay shall be reported to the
                            -8-               LRB9008970JSgcA
 1        Department.  There shall be no more than 13 subacute care
 2        hospitals  authorized  to  operate  by  the   Department.
 3        Subacute  care includes physician supervision, registered
 4        nursing, and  physiological  monitoring  on  a  continual
 5        basis.  A subacute care hospital is either a freestanding
 6        building or a distinct physical  and  operational  entity
 7        within  a  hospital or nursing home building.  A subacute
 8        care  hospital  shall  only  consist  of  beds  currently
 9        existing  in  licensed  hospitals  or   skilled   nursing
10        facilities,   except,  in  the  City  of  Chicago,  on  a
11        designated site that was licensed as a hospital under the
12        Illinois Hospital  Licensing  Act  within  the  10  years
13        immediately  before  the  application  for an alternative
14        health care model license. During the period of operation
15        of the demonstration project, the existing licensed  beds
16        shall  remain  licensed  as  hospital  or skilled nursing
17        facility beds as well as being licensed under  this  Act.
18        In  order  to handle cases of complications, emergencies,
19        or exigent circumstances, a subacute care hospital  shall
20        maintain a contractual relationship, including a transfer
21        agreement,  with  a  general  acute  care hospital.  If a
22        subacute care model is located in a  general  acute  care
23        hospital,  it  shall  utilize all or a portion of the bed
24        capacity of that existing hospital.  In no event shall  a
25        subacute  care  hospital  use  the word "hospital" in its
26        advertising or marketing activities or represent or  hold
27        itself  out  to  the  public  as  a  general  acute  care
28        hospital.
29             (2)  Alternative   health   care   delivery   model;
30        postsurgical   recovery   care  center.   A  postsurgical
31        recovery care center is  a  designated  site  that  which
32        provides postsurgical recovery care for generally healthy
33        patients   undergoing   surgical  procedures  or  medical
34        procedures that may require  periodic  overnight  nursing
                            -9-               LRB9008970JSgcA
 1        care,  pain  control,  or  observation, or treatment that
 2        would otherwise be  provided  in  an  inpatient  setting.
 3        Procedures  to  be  treated  shall  be  authorized by the
 4        consulting committee of  the  recovery  care  center.   A
 5        postsurgical  recovery care center is either freestanding
 6        or a defined unit of  an  ambulatory  surgical  treatment
 7        center   or  hospital.  No  facility,  or  portion  of  a
 8        facility, may participate in a demonstration program as a
 9        postsurgical recovery care center unless the facility has
10        been licensed as an ambulatory surgical treatment  center
11        or  hospital  for at least 2 years before August 20, 1993
12        (the effective date of Public Act 88-441).   The  maximum
13        length  of  stay  for patients in a postsurgical recovery
14        care center is not to exceed 48 hours unless the treating
15        physician requests an extension of time from the recovery
16        center's medical director on  the  basis  of  medical  or
17        clinical  documentation that an additional care period is
18        required for the recovery of a patient  and  the  medical
19        director  approves  the  extension  of time.  In no case,
20        however,  shall  a  patient's  length  of   stay   in   a
21        postsurgical  recovery  care  center  be  longer  than 72
22        hours. If a patient requires an  additional  care  period
23        after  the  expiration  of the 72-hour limit, the patient
24        shall be transferred to an appropriate facility.  Reports
25        on variances from the 48-hour limit shall be sent to  the
26        Department for its evaluation.  The reports shall, before
27        submission  to the Department, have removed from them all
28        patient and physician identifiers.  In  order  to  handle
29        cases   of   complications,   emergencies,   or   exigent
30        circumstances, every postsurgical recovery care center as
31        defined  in  this  paragraph shall maintain a contractual
32        relationship, including  a  transfer  agreement,  with  a
33        general  acute  care  hospital.   A postsurgical recovery
34        care  center  shall  be  no  larger  than  20   beds.   A
                            -10-              LRB9008970JSgcA
 1        postsurgical recovery care center shall be located within
 2        15  minutes  travel  time  from  the  general  acute care
 3        hospital with which the center  maintains  a  contractual
 4        relationship, including a transfer agreement, as required
 5        under this paragraph.
 6             No   postsurgical   recovery   care   center   shall
 7        discriminate  against  any  patient  requiring  treatment
 8        because  of the source of payment for services, including
 9        Medicare and Medicaid recipients.
10             The Department shall adopt rules  to  implement  the
11        provisions  of  Public Act 88-441 concerning postsurgical
12        recovery care centers within 9 months  after  August  20,
13        1993.
14             (3)  Alternative   health   care   delivery   model;
15        children's  respite  care  center.   A childrens' respite
16        care center model is  a  designated  site  that  provides
17        respite  for  medically frail, technologically dependent,
18        clinically stable children, up to age 18, for a period of
19        one to 14 days.   This  care  is  to  be  provided  in  a
20        home-like   environment  that  serves  no  more  than  10
21        children  at  a  time.  Children's  respite  care  center
22        services must be available  through  the   model  to  all
23        families,  including those whose care is paid for through
24        the Illinois Department of Public  Aid  or  the  Illinois
25        Department of Children and Family Services.  Each respite
26        care  model  location  shall  be  a  facility  physically
27        separate  and  apart  from any other facility licensed by
28        the Department of Public Health under this or  any  other
29        Act  and  shall  provide,  at  a  minimum,  the following
30        services: out-of-home  respite  care;  hospital  to  home
31        training   for   families   and  caregivers;  short  term
32        transitional care to facilitate  placement  and  training
33        for  foster  care  parents;  parent  and  family  support
34        groups.
                            -11-              LRB9008970JSgcA
 1        Coverage  for  the  services  provided  by  the  Illinois
 2    Department   of  Public  Aid  under  this  paragraph  (3)  is
 3    contingent upon federal waiver approval and is provided  only
 4    to  Medicaid  eligible  clients participating in the home and
 5    community based services waiver designated in Section 1915(c)
 6    of  the  Social  Security  Act  for   medically   frail   and
 7    technologically dependent children.
 8    (Source:  P.A.  88-441; 88-490; 88-670, eff. 12-2-94; 89-393,
 9    eff. 8-20-95.)
10        (210 ILCS 3/35.1)
11        Sec. 35.1.  Scope of Program for Recovery Centers.   Once
12    the  Department  has  authorized  a  total of 12 postsurgical
13    recovery care centers under this Act, no new centers shall be
14    authorized for the duration of the demonstration program.
15    (Source: P.A. 89-393, eff. 8-20-95.)
16        (210 ILCS 3/36)
17        Sec. 36.  Use  of  name;  patient  transfers;  consulting
18    committee. No facility or person shall hold itself out to the
19    public  as a "recovery care center" or "postsurgical recovery
20    care center" unless it is licensed as a postsurgical recovery
21    care center under this Act.
22        The Department  shall  establish  by  rule  criteria  for
23    patient transfers to postsurgical recovery care models.  Each
24    facility  licensed  as  a  postsurgical  recovery care center
25    shall establish a qualified consulting  committee  to  review
26    the  types  of  surgical  procedures  performed in ambulatory
27    surgical treatment centers  and  hospitals  which  intend  to
28    transfer patients to the recovery care center.  The committee
29    shall  recommend  appropriate  procedures for approval by the
30    Department of Public Health.  Action on these recommendations
31    by the Department shall not be unreasonably withheld.
32    (Source: P.A. 88-490.)
                            -12-              LRB9008970JSgcA
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.

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