Public Act 097-0980
 
HB4563 EnrolledLRB097 17230 PJG 62430 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 Facilities Planning Act is 
amended  by changing Sections 3, 13, and 14.1 as follows:
 



    (20 ILCS 3960/3)  (from Ch. 111 1/2, par. 1153)




    (Section scheduled to be repealed on December 31, 2019)
    Sec. 3. Definitions. As used in this Act:

    "Health care facilities" means and includes
the following 
facilities and organizations:


        1. An ambulatory surgical treatment center required to 
    be licensed
pursuant to the Ambulatory Surgical Treatment 
    Center Act;


        2. An institution, place, building, or agency required 
    to be licensed
pursuant to the Hospital Licensing Act;


        3. Skilled and intermediate long term care facilities 
    licensed under the
Nursing
Home Care Act;

        3.5. Skilled and intermediate care facilities licensed 
    under the ID/DD Community Care Act;
        3.7. Facilities licensed under the Specialized Mental 
    Health Rehabilitation Act; 

        4. Hospitals, nursing homes, ambulatory surgical 
    treatment centers, or
kidney disease treatment centers

    maintained by the State or any department or agency 
    thereof;


        5. Kidney disease treatment centers, including a 
    free-standing
hemodialysis unit required to be licensed 
    under the End Stage Renal Disease Facility Act;


        6. An institution, place, building, or room used for 
    the performance of
outpatient surgical procedures that is 
    leased, owned, or operated by or on
behalf of an 
    out-of-state facility;

        7. An institution, place, building, or room used for 
    provision of a health care category of service as defined 
    by the Board, including, but not limited to, cardiac 
    catheterization and open heart surgery; and
        8. An institution, place, building, or room used for 
    provision of major medical equipment used in the direct 
    clinical diagnosis or treatment of patients, and whose 
    project cost is in excess of the capital expenditure 
    minimum. 
    This Act shall not apply to the construction of any new 
facility or the renovation of any existing facility located on 
any campus facility as defined in Section 5-5.8b of the 
Illinois Public Aid Code, provided that the campus facility 
encompasses 30 or more contiguous acres and that the new or 
renovated facility is intended for use by a licensed 
residential facility. 
    No federally owned facility shall be subject to the 
provisions of this
Act, nor facilities used solely for healing 
by prayer or spiritual means.

    No facility licensed under the Supportive Residences 
Licensing Act or the
Assisted Living and Shared Housing Act

shall be subject to the provisions of this Act.

    No facility established and operating under the 
Alternative Health Care Delivery Act as a children's respite 
care center alternative health care model demonstration 
program or as an Alzheimer's Disease Management Center 
alternative health care model demonstration program shall be 
subject to the provisions of this Act. 
    A facility designated as a supportive living facility that 
is in good
standing with the program

established under Section 
5-5.01a of
the Illinois Public Aid Code shall not be subject to 
the provisions of this
Act.

    This Act does not apply to facilities granted waivers under 
Section 3-102.2
of the Nursing Home Care Act.  However, if a 
demonstration project under that
Act applies for a certificate

of need to convert to a nursing facility, it shall meet the 
licensure and
certificate of need requirements in effect as of 
the date of application.
    This Act does not apply to a dialysis facility that 
provides only dialysis training, support, and related services 
to individuals with end stage renal disease who have elected to 
receive home dialysis.  This Act does not apply to a dialysis 
unit located in a licensed nursing home that offers or provides 
dialysis-related services to residents with end stage renal 
disease who have elected to receive home dialysis  within the 
nursing home. The Board, however, may require these dialysis 
facilities and licensed nursing homes to report statistical 
information on a quarterly basis to the Board to be used by the 
Board to conduct analyses on the need for proposed kidney 
disease treatment centers.


    This Act shall not apply to the closure of an entity or a 
portion of an
entity licensed under the Nursing Home Care Act, 
the Specialized Mental Health Rehabilitation Act, or the ID/DD 
MR/DD Community Care Act, with the exceptions of facilities 
operated by a county or Illinois Veterans Homes, that elects to 
convert, in
whole or in part, to an assisted living or shared 
housing establishment
licensed under the Assisted Living and 
Shared Housing Act.

    This Act does not apply to any change of ownership of a 
healthcare facility that is licensed under the Nursing Home 
Care Act, the Specialized Mental Health Rehabilitation Act, or 
the ID/DD Community Care Act, with the exceptions of facilities 
operated by a county or Illinois Veterans Homes.  Changes of 
ownership of facilities licensed under the Nursing Home Care 
Act must meet the requirements set forth in Sections 3-101 
through 3-119 of the Nursing Home Care Act.

    With the exception of those health care facilities 
specifically
included in this Section, nothing in this Act 
shall be intended to
include facilities operated as a part of 
the practice of a physician or
other licensed health care 
professional, whether practicing in his
individual capacity or 
within the legal structure of any partnership,
medical or 
professional corporation, or unincorporated medical or

professional group. Further, this Act shall not apply to 
physicians or
other licensed health care professional's 
practices where such practices
are carried out in a portion of 
a health care facility under contract
with such health care 
facility by a physician or by other licensed
health care 
professionals, whether practicing in his individual capacity

or within the legal structure of any partnership, medical or

professional corporation, or unincorporated medical or 
professional
groups.  This Act shall apply to construction or

modification and to establishment by such health care facility 
of such
contracted portion which is subject to facility 
licensing requirements,
irrespective of the party responsible 
for such action or attendant
financial obligation.
    No permit or exemption is required for a facility licensed 
under the ID/DD Community Care Act prior to the reduction of 
the number of beds at a facility.  If there is a total reduction 
of beds at a facility licensed under the ID/DD Community Care 
Act, this is a discontinuation or closure of the facility.  
However, if a facility licensed under the ID/DD Community Care 
Act reduces the number of beds or discontinues the facility, 
that facility must notify the Board as provided in Section 14.1 
of this Act. 

    "Person" means any one or more natural persons, legal 
entities,
governmental bodies other than federal, or any 
combination thereof.

    "Consumer" means any person other than a person (a) whose 
major
occupation currently involves or whose official capacity 
within the last
12 months has involved the providing, 
administering or financing of any
type of health care facility, 
(b) who is engaged in health research or
the teaching of 
health, (c) who has a material financial interest in any

activity which involves the providing, administering or 
financing of any
type of health care facility, or (d) who is or 
ever has been a member of
the immediate family of the person 
defined by (a), (b), or (c).

    "State Board" or "Board" means the Health Facilities and 
Services Review Board.

    "Construction or modification" means the establishment, 
erection,
building, alteration, reconstruction, modernization, 
improvement,
extension, discontinuation, change of ownership, 
of or by a health care
facility, or the purchase or acquisition 
by or through a health care facility
of
equipment or service 
for diagnostic or therapeutic purposes or for
facility 
administration or operation, or any capital expenditure made by

or on behalf of a health care facility which
exceeds the 
capital expenditure minimum; however, any capital expenditure

made by or on behalf of a health care facility for (i) the 
construction or
modification of a facility licensed under the 
Assisted Living and Shared
Housing Act or (ii) a conversion 
project undertaken in accordance with Section 30 of the Older 
Adult Services Act shall be excluded from any obligations under 
this Act.

    "Establish" means the construction of a health care 
facility or the
replacement of an existing facility on another 
site or the initiation of a category of service as defined by 
the Board.

    "Major medical equipment" means medical equipment which is 
used for the
provision of medical and other health services and 
which costs in excess
of the capital expenditure minimum, 
except that such term does not include
medical equipment 
acquired
by or on behalf of a clinical laboratory to provide 
clinical laboratory
services if the clinical laboratory is 
independent of a physician's office
and a hospital and it has 
been determined under Title XVIII of the Social
Security Act to 
meet the requirements of paragraphs (10) and (11) of Section

1861(s) of such Act.  In determining whether medical equipment 
has a value
in excess of the capital expenditure minimum, the 
value of studies, surveys,
designs, plans, working drawings, 
specifications, and other activities
essential to the 
acquisition of such equipment shall be included.

    "Capital Expenditure" means an expenditure:  (A) made by or 
on behalf of
a health care facility (as such a facility is 
defined in this Act); and
(B) which under generally accepted 
accounting principles is not properly
chargeable as an expense 
of operation and maintenance, or is made to obtain
by lease or 
comparable arrangement any facility or part thereof or any

equipment for a facility or part; and which exceeds the capital 
expenditure
minimum.

    For the purpose of this paragraph, the cost of any studies, 
surveys, designs,
plans, working drawings, specifications, and 
other activities essential
to the acquisition, improvement, 
expansion, or replacement of any plant
or equipment with 
respect to which an expenditure is made shall be included
in 
determining if such expenditure exceeds the capital 
expenditures minimum.
Unless otherwise interdependent, or 
submitted as one project by the applicant, components of 
construction or modification undertaken by means of a single 
construction contract or financed through the issuance of a 
single debt instrument shall not be grouped together as one 
project. Donations of equipment
or facilities to a health care 
facility which if acquired directly by such
facility would be 
subject to review under this Act shall be considered capital

expenditures, and a transfer of equipment or facilities for 
less than fair
market value shall be considered a capital 
expenditure for purposes of this
Act if a transfer of the 
equipment or facilities at fair market value would
be subject 
to review.

    "Capital expenditure minimum" means $11,500,000 for 
projects by hospital applicants, $6,500,000 for applicants for 
projects related to skilled and intermediate care long-term 
care facilities licensed under the Nursing Home Care Act, and 
$3,000,000 for projects by  all other applicants, which shall be 
annually
adjusted to reflect the increase in construction costs 
due to inflation, for major medical equipment and for all other

capital expenditures.

    "Non-clinical service area" means an area (i) for the 
benefit of the
patients, visitors, staff, or employees of a 
health care facility and (ii) not
directly related to the 
diagnosis, treatment, or rehabilitation of persons
receiving 
services from the health care facility.  "Non-clinical service 
areas"
include, but are not limited to, chapels; gift shops; 
news stands; computer
systems; tunnels, walkways, and 
elevators; telephone systems; projects to
comply with life 
safety codes; educational facilities; student housing;

patient, employee, staff, and visitor dining areas; 
administration and
volunteer offices; modernization of 
structural components (such as roof
replacement and masonry 
work); boiler repair or replacement; vehicle
maintenance and 
storage facilities; parking facilities; mechanical systems for

heating, ventilation, and air conditioning; loading docks; and 
repair or
replacement of carpeting, tile, wall coverings, 
window coverings or treatments,
or furniture.  Solely for the 
purpose of this definition, "non-clinical service
area" does 
not include health and fitness centers.

    "Areawide" means a major area of the State delineated on a

geographic, demographic, and functional basis for health 
planning and
for health service and having within it one or 
more local areas for
health planning and health service.  The 
term "region", as contrasted
with the term "subregion", and the 
word "area" may be used synonymously
with the term "areawide".

    "Local" means a subarea of a delineated major area that on 
a
geographic, demographic, and functional basis may be 
considered to be
part of such major area.  The term "subregion" 
may be used synonymously
with the term "local".



    "Physician" means a person licensed to practice in 
accordance with
the Medical Practice Act of 1987, as amended.

    "Licensed health care professional" means a person 
licensed to
practice a health profession under pertinent 
licensing statutes of the
State of Illinois.

    "Director" means the  Director of the Illinois Department of 
Public Health.

    "Agency" means the Illinois Department of Public Health.


    "Alternative health care model" means a facility or program 
authorized
under the Alternative Health Care Delivery Act.

    "Out-of-state facility" means a person that is both (i) 
licensed as a
hospital or as an ambulatory surgery center under 
the laws of another state
or that
qualifies as a hospital or an 
ambulatory surgery center under regulations
adopted pursuant 
to the Social Security Act and (ii) not licensed under the

Ambulatory Surgical Treatment Center Act, the Hospital 
Licensing Act, or the
Nursing Home Care Act.  Affiliates of 
out-of-state facilities shall be
considered out-of-state 
facilities.  Affiliates of Illinois licensed health
care 
facilities 100% owned by an Illinois licensed health care 
facility, its
parent, or Illinois physicians licensed to 
practice medicine in all its
branches shall not be considered 
out-of-state facilities.  Nothing in
this definition shall be

construed to include an office or any part of an office of a 
physician licensed
to practice medicine in all its branches in 
Illinois that is not required to be
licensed under the 
Ambulatory Surgical Treatment Center Act.

    "Change of ownership of a health care facility" means a 
change in the
person
who has ownership or
control of a health 
care facility's physical plant and capital assets. A change
in 
ownership is indicated by
the following transactions: sale, 
transfer, acquisition, lease, change of
sponsorship, or other 
means of
transferring control.

    "Related person" means any person that: (i) is at least 50% 
owned, directly
or indirectly, by
either the health care 
facility or a person owning, directly or indirectly, at
least 
50% of the health
care facility; or (ii) owns, directly or 
indirectly, at least 50% of the
health care facility.

    "Charity care" means care provided by a health care 
facility for which the provider does not expect to receive 
payment from the patient or a third-party payer.
    "Freestanding emergency center" means a facility subject 
to licensure under Section 32.5 of the Emergency Medical 
Services (EMS) Systems Act.
(Source: P.A. 96-31, eff. 6-30-09; 96-339, eff. 7-1-10; 
96-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-277, eff. 1-1-12; 
revised 9-7-11.)
 


    (20 ILCS 3960/13)  (from Ch. 111 1/2, par. 1163)




    (Section scheduled to be repealed on December 31, 2019)

    Sec. 13. Investigation of applications for permits and 
certificates of
recognition. The Agency or the State Board 
shall make or cause to be made
such investigations as it or the 
State Board deems necessary in connection
with an application 
for a permit or an application for a certificate of

recognition, or in connection with a determination of whether 
or not
construction
or modification which has been commenced is 
in accord with the permit issued
by the State Board or whether 
construction or modification has been commenced
without a 
permit having been obtained.  The State Board may issue 
subpoenas
duces tecum requiring the production of records and 
may administer oaths
to such witnesses.

    Any circuit court of this State, upon the application of 
the State Board
or upon the application of any party to such 
proceedings, may, in its
discretion,
compel the attendance of 
witnesses, the production of books, papers, records,
or 
memoranda and the giving of testimony before the State Board, 
by a
proceeding
as for contempt, or otherwise, in the same 
manner as production of evidence
may be compelled before the 
court.

    The State Board shall require all health facilities 
operating
in this State
to provide such reasonable reports at 
such times and containing such
information
as is needed by it 
to carry out the purposes and provisions of this Act.
 Prior to 
collecting information from health facilities, the State Board

shall make reasonable efforts
through a public process to 
consult with health facilities and associations
that represent 
them to determine
whether data and information requests will 
result in useful information for
health planning, whether

sufficient information is available from other sources, and 
whether data
requested is routinely collected
by health 
facilities and is available without retrospective record 
review. Data
and information requests
shall not impose undue 
paperwork burdens on health care facilities and
personnel.
 
Health facilities not complying with this requirement shall be 
reported
to licensing, accrediting, certifying, or payment 
agencies as being in
violation
of State law. Health care 
facilities and other parties at interest shall
have reasonable 
access, under rules established by the State Board, to all

planning information submitted in accord with this Act 
pertaining to their
area.

    Among the reports to be required by the State Board are 
facility questionnaires for health care facilities licensed 
under the Ambulatory Surgical Treatment Center Act, the 
Hospital Licensing Act, the Nursing Home Care Act, the ID/DD 
Community Care Act, the Specialized Mental Health 
Rehabilitation Act, or the End Stage Renal Disease Facility 
Act. These questionnaires shall be conducted on an annual basis 
and compiled by the Agency. For health care facilities licensed 
under the Nursing Home Care Act or , the Specialized Mental 
Health Rehabilitation Act, or the ID/DD Community Care Act, 
these reports shall include, but not be limited to, the 
identification of specialty services provided by the facility 
to patients, residents, and the community at large. Annual 
reports for facilities licensed under the ID/DD Community Care 
Act shall be different from the annual reports required of 
other health care facilities and shall be specific to those 
facilities licensed under the ID/DD Community Care Act.  The 
Health Facilities and Services Review Board shall consult with 
associations representing facilities licensed under the ID/DD 
Community Care Act when developing the information requested in 
these annual reports. For health care facilities that contain 
long term care beds, the reports shall also include the number 
of staffed long term care beds, physical capacity for long term 
care beds at the facility, and long term care beds available 
for immediate occupancy. For purposes of this paragraph, "long 
term care beds" means beds
(i) licensed under the Nursing Home 
Care Act, (ii) licensed under the ID/DD Community Care Act, 
(iii) licensed under the Hospital Licensing Act, or (iv) 
licensed under the Specialized Mental Health Rehabilitation 
Act and certified as skilled nursing or nursing facility beds 
under Medicaid or Medicare.

(Source: P.A. 96-339, eff. 7-1-10; 97-38, eff. 6-28-11; 97-227, 
eff. 1-1-12; revised 9-7-11.)

 


    (20 ILCS 3960/14.1)


    Sec. 14.1. Denial of permit; other sanctions. 
    (a) The State Board may deny an application for a permit or 
may revoke or
take other action as permitted by this Act with 
regard to a permit as the State
Board deems appropriate, 
including the imposition of fines as set forth in this
Section, 
for any one or a combination of the following:
        (1) The acquisition of major medical equipment without 
    a permit or in
violation of the terms of a permit.
        (2) The establishment, construction, or modification 
    of a health care
facility without a permit or in violation 
    of the terms of a permit.
        (3) The violation of any provision of this Act or any 
    rule adopted
under this Act.
        (4) The failure, by any person subject to this Act, to 
    provide information
requested by the State Board or Agency 
    within 30 days after a formal written
request for the 
    information.
        (5) The failure to pay any fine imposed under this 
    Section within 30 days
of its imposition.
    (a-5) For facilities licensed under the ID/DD Community 
Care Act, no permit shall be denied on the basis of prior 
operator history, other than for actions specified under item 
(2), (4), or (5) of Section 3-117 of the ID/DD Community Care 
Act. For facilities licensed under the Specialized Mental 
Health Rehabilitation Act, no permit shall be denied on the 
basis of prior operator history, other than for actions 
specified under item (2), (4), or (5) of Section 3-117 of the 
Specialized Mental Health Rehabilitation Act. For facilities 
licensed under the Nursing Home Care Act, no permit shall be 
denied on the basis of prior operator history, other than for: 
(i) actions specified under item (2), (3), (4), (5), or (6) of 
Section 3-117 of the Nursing Home Care Act; (ii) actions 
specified under item (a)(6) of Section 3-119 of the Nursing 
Home Care Act; or (iii) actions within the preceding 5 years 
constituting a substantial and repeated failure to comply with 
the Nursing Home Care Act or the rules and regulations adopted  
by the Department under that Act.  The State Board shall not 
deny  a permit on account of any action described in this 
subsection (a-5)  without also considering all such  actions in 
the light of all relevant information available to the State 
Board, including whether the permit is sought to substantially 
comply with a mandatory or voluntary plan of correction 
associated with any action described in this subsection (a-5).

    (b) Persons shall be subject to fines as follows:
        (1) A permit holder who fails to comply with the 
    requirements of
maintaining a valid permit shall be fined 
    an amount not to exceed 1% of the
approved permit amount 
    plus an additional 1% of the approved permit amount for

    each 30-day period, or fraction thereof, that the violation 
    continues.
        (2) A permit holder who alters the scope of an approved 
    project or whose
project costs exceed the allowable permit 
    amount without first obtaining
approval from the State 
    Board shall be fined an amount not to exceed the sum of
(i) 
    the lesser of $25,000 or 2% of the approved permit amount 
    and (ii) in those
cases where the approved permit amount is 
    exceeded by more than $1,000,000, an
additional $20,000 for 
    each $1,000,000, or fraction thereof, in excess of the

    approved permit amount.
        (3) A person who acquires major medical equipment or 
    who establishes a
category of service without first 
    obtaining a permit or exemption, as the case
may be, shall 
    be fined an amount not to exceed $10,000 for each such

    acquisition or category of service established plus an 
    additional $10,000 for
each 30-day period, or fraction 
    thereof, that the violation continues.
        (4) A person who constructs, modifies, or establishes a 
    health care
facility without first obtaining a permit shall 
    be fined an amount not to
exceed $25,000 plus an additional 
    $25,000 for each 30-day period, or fraction
thereof, that 
    the violation continues.
        (5) A person who discontinues a health care facility or 
    a category of
service without first obtaining a permit 
    shall be fined an amount not to exceed
$10,000 plus an 
    additional $10,000 for each 30-day period, or fraction 
    thereof,
that the violation continues. For purposes of this 
    subparagraph (5), facilities licensed under the Nursing 
    Home Care Act or the ID/DD Community Care Act, with the 
    exceptions of facilities operated by a county or Illinois 
    Veterans Homes, are exempt from this permit requirement.  
    However, facilities licensed under the Nursing Home Care 
    Act or the ID/DD Community Care Act must comply with 
    Section 3-423 of the Nursing Home Care Act or Section 3-423 
    of the ID/DD Community Care Act and must provide the Board 
    and the Department of Human Services with 30 days' 30-days' 
    written notice of its intent to close.
Facilities licensed 
    under the ID/DD Community Care Act also must provide the 
    Board and the Department of Human Services with 30 days' 
    written notice of its intent to reduce the number of beds 
    for a facility. 
        (6) A person subject to this Act who fails to provide 
    information
requested by the State Board or Agency within 
    30 days of a formal written
request shall be fined an 
    amount not to exceed $1,000 plus an additional $1,000
for 
    each 30-day period, or fraction thereof, that the 
    information is not
received by the State Board or Agency.
    (c) Before imposing any fine authorized under this Section, 
the State Board
shall afford the person or permit holder, as 
the case may be, an appearance
before the State Board and an 
opportunity for a hearing before a hearing
officer appointed by 
the State Board.  The hearing shall be conducted in
accordance 
with Section 10.
    (d) All fines collected under this Act shall be transmitted 
to the State
Treasurer, who shall deposit them into the 
Illinois Health Facilities Planning
Fund.
(Source: P.A. 96-339, eff. 7-1-10; 96-1372, eff. 7-29-10; 
97-38, eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-7-11.)

 

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