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91_SB1278eng SB1278 Engrossed 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;and23 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 SB1278 Engrossed -2- LRB9109444JMpr 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. SB1278 Engrossed -3- LRB9109444JMpr 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 SB1278 Engrossed -4- LRB9109444JMpr 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 SB1278 Engrossed -5- LRB9109444JMpr 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 SB1278 Engrossed -6- LRB9109444JMpr 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 SB1278 Engrossed -7- LRB9109444JMpr 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 SB1278 Engrossed -8- LRB9109444JMpr 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.)