Public Act 094-0027
 		





HB2343 Enrolled
LRB094 05025 BDD 39283 b






    AN ACT concerning State government.

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

 
    Section 5. The Illinois Health Finance Reform Act is 
amended  by changing Section 4-2 as follows:
 



    (20 ILCS 2215/4-2)  (from Ch. 111 1/2, par. 6504-2)



    Sec. 4-2. Powers and duties. 

    (a) (Blank).

    (b) (Blank).

    (c) (Blank).

    (d) Uniform Provider Utilization and Charge Information.


        (1) The Department of Public Health shall require that 
    all hospitals and ambulatory surgical treatment centers

    licensed to operate in the State of Illinois adopt a 
    uniform system for
submitting patient claims and encounter 
    data
charges
for payment from public and private payors.  
    This system shall be based upon adoption of the uniform

    electronic hospital billing form pursuant to the Health 
    Insurance
Portability and Accountability Act.


        (2) (Blank).


        (3) The Department of Insurance shall require all 
    third-party payors,
including but not limited to, licensed 
    insurers, medical and hospital service
corporations, 
    health maintenance organizations, and self-funded employee

    health plans, to accept the uniform billing form, without 
    attachment as
submitted by hospitals pursuant to paragraph 
    (1) of subsection (d) above,
effective January 1, 1985; 
    provided, however, nothing shall prevent all
such third 
    party payors from requesting additional information 
    necessary to
determine eligibility for benefits or 
    liability for reimbursement for
services provided.


        (4) By no later than 60 days after the end of each 
    calendar quarter, each
Each hospital
licensed in the State 
    shall electronically submit to
the Department inpatient 
    and outpatient claims and encounter
patient
billing data 
    related to surgical and invasive procedures collected 
    under paragraph (5) for each patient.
        By no later than 60 days after the end of each calendar 
    quarter, each ambulatory surgical treatment center 
    licensed in the State shall electronically submit to the 
    Department outpatient claims and encounter data collected 
    under paragraph (5) for each patient, provided however, 
    that, until July 1, 2006, ambulatory surgical treatment 
    centers who cannot electronically submit data may submit 
    data by computer diskette.
conditions and procedures 
    required
for public disclosure pursuant to paragraph (6).


    For hospitals, the claims and encounter
billing
data to be

    reported shall include all inpatient surgical
cases.

    Claims and encounter
Billing data submitted under this Act

    shall not include a patient's name,
address,
or
Social 
    Security number.


        (5) By no later than January 1, 2006
January 1, 2005, 
    the Department must collect and
compile
claims and 
    encounter
billing data related to surgical and invasive 
    procedures
required under paragraph (6) according to 
    uniform electronic
submission formats as required under 
    the Health Insurance Portability and
Accountability Act. 
    By no later than January 1, 2006, the Department must 
    collect and compile from ambulatory surgical treatment 
    centers the claims and encounter data according to uniform 
    electronic data element formats as required under the 
    Health Insurance Portability and Accountability Act of 
    1996 (HIPAA).



        (6) The Department shall make available on its website 
    the
"Consumer Guide to Health Care" by January 1, 2006. The 
    "Consumer
Guide to Health Care" shall include information 
    on at least 30 inpatient conditions and
procedures 
    identified by the Department that demonstrate the highest

    degree of variation in patient charges and quality of care. 
    By no later than January 1, 2007, the "Consumer Guide to 
    Health Care" shall also include information on at least 30 
    outpatient conditions and procedures identified by the 
    Department that demonstrate the highest degree of 
    variation in patient charges and quality care. As to each

    condition or procedure, the "Consumer Guide to Health Care" 
    shall include
up-to-date comparison information relating 
    to volume of cases, average
charges, risk-adjusted 
    mortality rates, and nosocomial infection rates and, with 
    respect to outpatient surgical and invasive procedures, 
    shall include information regarding surgical infections, 
    complications, and direct admissions of outpatient cases 
    to hospitals for selected procedures, as determined by the 
    Department, based on review by the Department of its own, 
    local, or national studies.
Information disclosed pursuant 
    to this paragraph on
mortality and infection rates shall be 
    based upon information hospitals
and ambulatory surgical 
    treatment centers have either (i)
previously submitted to 
    the Department pursuant to their obligations
to report 
    health care information under this Act or other public 
    health reporting laws
and regulations outside of this Act 
    or (ii) submitted to the Department under the provisions of 
    the Hospital Report Card Act.


        (7) Publicly disclosed information must be provided in 
    language
that is easy to understand and accessible to 
    consumers using an
interactive query system. The guide 
    shall include such additional information as is necessary 
    to enhance decision making among consumer and health care 
    purchasers, which shall include, at a minimum, appropriate 
    guidance on how to interpret the data and an explanation of 
    why the data may vary from provider to provider. The 
    "Consumer Guide to Health Care" shall also cite standards 
    that facilities meet under state and federal law and, if 
    applicable, to achieve voluntary accreditation.



        (8) None of the information the Department discloses to 
    the public
under this subsection may be made available 
    unless the information has
been reviewed, adjusted, and 
    validated according to the following process:


            (i) Hospitals, ambulatory surgical treatment 
        centers,
and organizations
representing hospitals, 
        ambulatory surgical treatment centers, purchasers, 
        consumer groups, and health plans are
meaningfully 
        involved in providing advice and consultation to the 
        Department in the development of all aspects of
the 
        Department's methodology for collecting, analyzing, 
        and
disclosing the information collected under this 
        Act, including
collection methods, formatting, and 
        methods and means for
release and dissemination;


            (ii) The entire methodology for collecting

        collection and
analyzing the data is disclosed to all 
        relevant organizations
and to all providers that are 
        the subject of any information to
be made available to 
        the public before any public disclosure
of such 
        information;


            (iii) Data collection and analytical methodologies 
        are
used that meet accepted standards of validity and 
        reliability
before any information is made available 
        to the public;


            (iv) The limitations of the data sources and 
        analytic
methodologies used to develop comparative 
        provider
information are clearly identified and 
        acknowledged,
including, but not limited to, 
        appropriate and inappropriate
uses of the data;


            (v) To the greatest extent possible, comparative

        hospital and ambulatory surgical treatment center

        information initiatives use standard-based
norms 
        derived from widely accepted provider-developed

        practice guidelines;


            (vi) Comparative hospital and ambulatory surgical 
        treatment center information and other
information 
        that the Department has compiled regarding
hospitals 
        and ambulatory surgical treatment centers is shared 
        with the hospitals and ambulatory surgical treatment 
        centers under review prior to
public dissemination of 
        the information and these providers
have an 
        opportunity to make corrections and additions of

        helpful explanatory comments about the information 
        before
the publication;


            (vii) Comparisons among hospitals and ambulatory 
        surgical treatment centers adjust for
patient case mix 
        and other relevant risk factors and control
for 
        provider peer groups, if applicable;


            (viii) Effective safeguards to protect against the

        unauthorized use or disclosure of hospital and 
        ambulatory surgical treatment center information are

        developed and implemented;


            (ix) Effective safeguards to protect against the

        dissemination of inconsistent, incomplete, invalid,

        inaccurate, or subjective provider data are developed 
        and
implemented;


            (x) The quality and accuracy of hospital and 
        ambulatory surgical treatment center information

        reported under this Act and its data collection, 
        analysis, and
dissemination methodologies are 
        evaluated regularly; and


            (xi) Only the most basic hospital or ambulatory 
        surgical treatment center identifying information from 
        mandatory reports is used. Information regarding a 
        hospital or ambulatory surgical center may be released 
        regardless of the number of employees or health care 
        professionals whose data are reflected in the data for 
        the hospital or ambulatory surgical treatment center 
        as long as no specific information identifying an 
        employee or a health care professional is released.

        identifying information from
mandatory reports is 
        used, and
Further, patient identifiable
information is 
        not released. The input data collected
by the 
        Department shall not be a public record under the

        Illinois Freedom of Information Act.


        None of the information
the Department discloses to the 
    public under this Act may be
used to establish a standard 
    of care in a private civil action.


        (9) The Department must develop and implement an 
    outreach
campaign to educate the public regarding the 
    availability of the "Consumer
Guide to Health Care".


        (10) By January 1, 2006,
Within 12 months after the 
    effective date of this amendatory
Act of the 93rd General 
    Assembly, the Department must study the
most effective 
    methods for public disclosure of patient claims and 
    encounter
charge data and
health care quality information 
    that will be useful to consumers in making
health care 
    decisions and report its recommendations to the
Governor 
    and to the General Assembly.


        (11) The Department must undertake all steps necessary 
    under
State and Federal law to protect patient 
    confidentiality in order to prevent
the identification of 
    individual patient records.

        (12) The Department must adopt rules for inpatient and 
    outpatient data collection and reporting  no later than 
    January 1, 2006.
        (13) In addition to the data products indicated above, 
    the Department shall respond to requests by government 
    agencies, academic research organizations, and private 
    sector organizations for purposes of clinical performance 
    measurements and analyses of data collected pursuant to 
    this Section.
        (14) The Department, with the advice of and in 
    consultation with hospitals, ambulatory surgical treatment 
    centers, organizations representing hospitals, 
    organizations representing ambulatory treatment centers, 
    purchasers, consumer groups, and health plans,  must 
    evaluate additional methods for comparing the performance 
    of hospitals and ambulatory surgical treatment centers, 
    including the value of disclosing additional measures that 
    are adopted by the National Quality Forum, The Joint 
    Commission on Accreditation of Healthcare Organizations, 
    the Accreditation Association for Ambulatory Health Care, 
    the Centers for Medicare and Medicaid Services, or  similar 
    national entities that establish standards to measure the 
    performance of health care providers.  The Department shall 
    report its findings and recommendations on its Internet 
    website and to the Governor and General Assembly no later 
    than July 1, 2006.

    (e) (Blank).

(Source: P.A. 92-597, eff. 7-1-02; 93-144, eff. 7-10-03.)


 

    Section 99. Effective date. This Act takes effect upon 
becoming law.