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91_SB1278
LRB9109444JMpr
1 AN ACT to amend the Illinois Health Facilities Planning
2 Act by changing Sections 3 and 5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Health Facilities Planning Act
6 is amended by changing Sections 3 and 5 as follows:
7 (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
8 Sec. 3. As used in this Act:
9 "Health care facilities" means and includes the following
10 facilities and organizations:
11 1. An ambulatory surgical treatment center required
12 to be licensed pursuant to the Ambulatory Surgical
13 Treatment Center Act;
14 2. An institution, place, building, or agency
15 required to be licensed pursuant to the Hospital
16 Licensing Act;
17 3. Any institution required to be licensed pursuant
18 to the Nursing Home Care Act;
19 4. Hospitals, nursing homes, ambulatory surgical
20 treatment centers, or kidney disease treatment centers
21 maintained by the State or any department or agency
22 thereof; and
23 5. Kidney disease treatment centers, including a
24 free-standing hemodialysis unit; and.
25 6. An institution, place, building, or room used
26 for the performance of outpatient surgical procedures
27 that is acquired, constructed, or leased by or on behalf
28 of a person or an affiliate of a person that is a foreign
29 hospital or foreign ambulatory surgery center.
30 No federally owned facility shall be subject to the
31 provisions of this Act, nor facilities used solely for
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1 healing by prayer or spiritual means.
2 No facility licensed under the Supportive Residences
3 Licensing Act shall be subject to the provisions of this Act.
4 A facility designated as a supportive living facility
5 that is in good standing with the demonstration project
6 established under Section 5-5.01a of the Illinois Public Aid
7 Code shall not be subject to the provisions of this Act.
8 This Act does not apply to facilities granted waivers
9 under Section 3-102.2 of the Nursing Home Care Act. However,
10 if a demonstration project under that Act applies for a
11 certificate of need to convert to a nursing facility, it
12 shall meet the licensure and certificate of need requirements
13 in effect as of the date of application.
14 With the exception of those health care facilities
15 specifically included in this Section, nothing in this Act
16 shall be intended to include facilities operated as a part of
17 the practice of a physician or other licensed health care
18 professional, whether practicing in his individual capacity
19 or within the legal structure of any partnership, medical or
20 professional corporation, or unincorporated medical or
21 professional group. Further, this Act shall not apply to
22 physicians or other licensed health care professional's
23 practices where such practices are carried out in a portion
24 of a health care facility under contract with such health
25 care facility by a physician or by other licensed health care
26 professionals, whether practicing in his individual capacity
27 or within the legal structure of any partnership, medical or
28 professional corporation, or unincorporated medical or
29 professional groups. This Act shall apply to construction or
30 modification and to establishment by such health care
31 facility of such contracted portion which is subject to
32 facility licensing requirements, irrespective of the party
33 responsible for such action or attendant financial
34 obligation.
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1 "Person" means any one or more natural persons, legal
2 entities, governmental bodies other than federal, or any
3 combination thereof.
4 "Consumer" means any person other than a person (a) whose
5 major occupation currently involves or whose official
6 capacity within the last 12 months has involved the
7 providing, administering or financing of any type of health
8 care facility, (b) who is engaged in health research or the
9 teaching of health, (c) who has a material financial interest
10 in any activity which involves the providing, administering
11 or financing of any type of health care facility, or (d) who
12 is or ever has been a member of the immediate family of the
13 person defined by (a), (b), or (c).
14 "State Board" means the Health Facilities Planning Board.
15 "Construction or modification" means the establishment,
16 erection, building, alteration, reconstruction,
17 modernization, improvement, extension, discontinuation,
18 change of ownership, of or by a health care facility, or the
19 purchase or acquisition by or through a health care facility
20 of equipment or service for diagnostic or therapeutic
21 purposes or for facility administration or operation, or any
22 capital expenditure made by or on behalf of a health care
23 facility which exceeds the capital expenditure minimum.
24 "Establish" means the construction of a health care
25 facility or the replacement of an existing facility on
26 another site.
27 "Major medical equipment" means medical equipment which
28 is used for the provision of medical and other health
29 services and which costs in excess of the capital expenditure
30 minimum, except that such term does not include medical
31 equipment acquired by or on behalf of a clinical laboratory
32 to provide clinical laboratory services if the clinical
33 laboratory is independent of a physician's office and a
34 hospital and it has been determined under Title XVIII of the
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1 Social Security Act to meet the requirements of paragraphs
2 (10) and (11) of Section 1861(s) of such Act. In determining
3 whether medical equipment has a value in excess of the
4 capital expenditure minimum, the value of studies, surveys,
5 designs, plans, working drawings, specifications, and other
6 activities essential to the acquisition of such equipment
7 shall be included.
8 "Capital Expenditure" means an expenditure: (A) made by
9 or on behalf of a health care facility (as such a facility is
10 defined in this Act); and (B) which under generally accepted
11 accounting principles is not properly chargeable as an
12 expense of operation and maintenance, or is made to obtain by
13 lease or comparable arrangement any facility or part thereof
14 or any equipment for a facility or part; and which exceeds
15 the capital expenditure minimum.
16 For the purpose of this paragraph, the cost of any
17 studies, surveys, designs, plans, working drawings,
18 specifications, and other activities essential to the
19 acquisition, improvement, expansion, or replacement of any
20 plant or equipment with respect to which an expenditure is
21 made shall be included in determining if such expenditure
22 exceeds the capital expenditures minimum. Donations of
23 equipment or facilities to a health care facility which if
24 acquired directly by such facility would be subject to review
25 under this Act shall be considered capital expenditures, and
26 a transfer of equipment or facilities for less than fair
27 market value shall be considered a capital expenditure for
28 purposes of this Act if a transfer of the equipment or
29 facilities at fair market value would be subject to review.
30 "Capital expenditure minimum" means $1,000,000 for major
31 medical equipment and $2,000,000 for all other capital
32 expenditures, both of which shall be annually adjusted to
33 reflect the increase in construction costs due to inflation.
34 "Areawide" means a major area of the State delineated on
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1 a geographic, demographic, and functional basis for health
2 planning and for health service and having within it one or
3 more local areas for health planning and health service. The
4 term "region", as contrasted with the term "subregion", and
5 the word "area" may be used synonymously with the term
6 "areawide".
7 "Local" means a subarea of a delineated major area that
8 on a geographic, demographic, and functional basis may be
9 considered to be part of such major area. The term
10 "subregion" may be used synonymously with the term "local".
11 "Areawide health planning organization" or "Comprehensive
12 health planning organization" means the health systems agency
13 designated by the Secretary, Department of Health and Human
14 Services or any successor agency.
15 "Local health planning organization" means those local
16 health planning organizations that are designated as such by
17 the areawide health planning organization of the appropriate
18 area.
19 "Physician" means a person licensed to practice in
20 accordance with the Medical Practice Act of 1987, as amended.
21 "Licensed health care professional" means a person
22 licensed to practice a health profession under pertinent
23 licensing statutes of the State of Illinois.
24 "Director" means the Director of the Illinois Department
25 of Public Health.
26 "Agency" means the Illinois Department of Public Health.
27 "Comprehensive health planning" means health planning
28 concerned with the total population and all health and
29 associated problems that affect the well-being of people and
30 that encompasses health services, health manpower, and health
31 facilities; and the coordination among these and with those
32 social, economic, and environmental factors that affect
33 health.
34 "Alternative health care model" means a facility or
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1 program authorized under the Alternative Health Care Delivery
2 Act.
3 "Foreign hospital" or "foreign ambulatory surgery center"
4 means a person that is both (i) licensed as a hospital or as
5 an ambulatory surgery center under the laws of another State
6 or that qualifies as a hospital or an ambulatory surgery
7 center under regulations adopted pursuant to the Social
8 Security Act and (ii) not licensed under the Ambulatory
9 Surgical Treatment Act, the Hospital Licensing Act, or the
10 Nursing Home Care Act.
11 (Source: P.A. 89-499, eff. 6-28-96; 89-530, eff. 7-19-96;
12 90-14, eff. 7-1-97.)
13 (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
14 Sec. 5. After effective dates set by the State Board,
15 no person shall construct, modify or establish a health care
16 facility or acquire major medical equipment without first
17 obtaining a permit or exemption from the State Board. The
18 State Board shall not delegate to the Executive Secretary of
19 the State Board or any other person or entity the authority
20 to grant permits or exemptions whenever the Executive
21 Secretary or other person or entity would be required to
22 exercise any discretion affecting the decision to grant a
23 permit or exemption. The State Board shall set effective
24 dates applicable to all or to each classification or category
25 of health care facilities and applicable to all or each type
26 of transaction for which a permit is required. Varying
27 effective dates may be set, providing the date or dates so
28 set shall apply uniformly statewide.
29 Notwithstanding any effective dates established by this
30 Act or by the State Board, no person shall be required to
31 obtain a permit for any purpose under this Act until the
32 State health facilities plan referred to in paragraph (4) of
33 Section 12 of this Act has been approved and adopted by the
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1 State Board subsequent to public hearings having been held
2 thereon.
3 A permit or exemption shall be obtained prior to the
4 acquisition of major medical equipment or to the construction
5 or modification of a health care facility which:
6 (a) requires a total capital expenditure in excess
7 of the capital expenditure minimum; or
8 (b) substantially changes the scope or changes the
9 functional operation of the facility; or
10 (c) changes the bed capacity of a health care
11 facility by increasing the total number of beds or by
12 distributing beds among various categories of service or
13 by relocating beds from one physical facility or site to
14 another by more than 10 beds or more than 10% of total
15 bed capacity as defined by the State Board, whichever is
16 less, over a 2 year period.
17 An institution, place, building, or room used for the
18 performance of outpatient surgical procedures shall not be
19 acquired, constructed, modified, or leased by or on behalf of
20 a person or an affiliate of a person that is a foreign
21 hospital or a foreign ambulatory surgery center without first
22 obtaining a permit from the State Board.
23 A permit shall be valid only for the defined construction
24 or modifications, site, amount and person named in the
25 application for such permit and shall not be transferable or
26 assignable. A permit shall be valid until such time as the
27 project has been completed, provided that (a) obligation of
28 the project occurs within 12 months following issuance of the
29 permit except for major construction projects such obligation
30 must occur within 18 months following issuance of the permit;
31 and (b) the project commences and proceeds to completion with
32 due diligence. Major construction projects, for the purposes
33 of this Act, shall include but are not limited to: projects
34 for the construction of new buildings; additions to existing
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1 facilities; modernization projects whose cost is in excess of
2 $1,000,000 or 10% of the facilities' operating revenue,
3 whichever is less; and such other projects as the State Board
4 shall define and prescribe pursuant to this Act. The State
5 Board may extend the obligation period upon a showing of good
6 cause by the permit holder. Permits for projects that have
7 not been obligated within the prescribed obligation period
8 shall expire on the last day of that period.
9 Persons who otherwise would be required to obtain a
10 permit shall be exempt from such requirement if the State
11 Board finds that with respect to establishing a new facility
12 or construction of new buildings or additions or
13 modifications to an existing facility, final plans and
14 specifications for such work have prior to October 1, 1974,
15 been submitted to and approved by the Department of Public
16 Health in accordance with the requirements of applicable
17 laws. Such exemptions shall be null and void after December
18 31, 1979 unless binding construction contracts were signed
19 prior to December 1, 1979 and unless construction has
20 commenced prior to December 31, 1979. Such exemptions shall
21 be valid until such time as the project has been completed
22 provided that the project proceeds to completion with due
23 diligence.
24 The acquisition by any person of major medical equipment
25 that will not be owned by or located in a health care
26 facility and that will not be used to provide services to
27 inpatients of a health care facility shall be exempt from
28 review provided that a notice is filed in accordance with
29 exemption requirements.
30 (Source: P.A. 88-18.)