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91_SB1342
LRB9111236MWgc
1 AN ACT concerning health facility planning.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Health Facilities Planning Act
5 is amended by changing Sections 3, 4, and 5 as follows:
6 (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
7 (Text of Section before amendment by P.A. 91-656)
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.
25 No federally owned facility shall be subject to the
26 provisions of this Act, nor facilities used solely for
27 healing by prayer or spiritual means.
28 No facility licensed under the Supportive Residences
29 Licensing Act shall be subject to the provisions of this Act.
30 A facility designated as a supportive living facility
31 that is in good standing with the demonstration project
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1 established under Section 5-5.01a of the Illinois Public Aid
2 Code shall not be subject to the provisions of this Act.
3 This Act does not apply to facilities granted waivers
4 under Section 3-102.2 of the Nursing Home Care Act. However,
5 if a demonstration project under that Act applies for a
6 certificate of need to convert to a nursing facility, it
7 shall meet the licensure and certificate of need requirements
8 in effect as of the date of application.
9 With the exception of those health care facilities
10 specifically included in this Section, nothing in this Act
11 shall be intended to include facilities operated as a part of
12 the practice of a physician or other licensed health care
13 professional, whether practicing in his individual capacity
14 or within the legal structure of any partnership, medical or
15 professional corporation, or unincorporated medical or
16 professional group. Further, this Act shall not apply to
17 physicians or other licensed health care professional's
18 practices where such practices are carried out in a portion
19 of a health care facility under contract with such health
20 care facility by a physician or by other licensed health care
21 professionals, whether practicing in his individual capacity
22 or within the legal structure of any partnership, medical or
23 professional corporation, or unincorporated medical or
24 professional groups. This Act shall apply to construction or
25 modification and to establishment by such health care
26 facility of such contracted portion which is subject to
27 facility licensing requirements, irrespective of the party
28 responsible for such action or attendant financial
29 obligation.
30 "Person" means any one or more natural persons, legal
31 entities, governmental bodies other than federal, or any
32 combination thereof.
33 "Consumer" means any person other than a person (a) whose
34 major occupation currently involves or whose official
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1 capacity within the last 12 months has involved the
2 providing, administering or financing of any type of health
3 care facility, (b) who is engaged in health research or the
4 teaching of health, (c) who has a material financial interest
5 in any activity which involves the providing, administering
6 or financing of any type of health care facility, or (d) who
7 is or ever has been a member of the immediate family of the
8 person defined by (a), (b), or (c).
9 "State Board" means the Health Facilities Planning Board.
10 "Construction or modification" means the establishment,
11 erection, building, alteration, reconstruction,
12 modernization, improvement, extension, discontinuation,
13 change of ownership, of or by a health care facility, or the
14 purchase or acquisition by or through a health care facility
15 of equipment or service for diagnostic or therapeutic
16 purposes or for facility administration or operation, or any
17 capital expenditure made by or on behalf of a health care
18 facility which exceeds the capital expenditure minimum.
19 "Establish" means the construction of a health care
20 facility or the replacement of an existing facility on
21 another site.
22 "Major medical equipment" means medical equipment which
23 is used for the provision of medical and other health
24 services and which costs in excess of the capital expenditure
25 minimum, except that such term does not include medical
26 equipment acquired by or on behalf of a clinical laboratory
27 to provide clinical laboratory services if the clinical
28 laboratory is independent of a physician's office and a
29 hospital and it has been determined under Title XVIII of the
30 Social Security Act to meet the requirements of paragraphs
31 (10) and (11) of Section 1861(s) of such Act. In determining
32 whether medical equipment has a value in excess of the
33 capital expenditure minimum, the value of studies, surveys,
34 designs, plans, working drawings, specifications, and other
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1 activities essential to the acquisition of such equipment
2 shall be included.
3 "Capital Expenditure" means an expenditure: (A) made by
4 or on behalf of a health care facility (as such a facility is
5 defined in this Act); and (B) which under generally accepted
6 accounting principles is not properly chargeable as an
7 expense of operation and maintenance, or is made to obtain by
8 lease or comparable arrangement any facility or part thereof
9 or any equipment for a facility or part; and which exceeds
10 the capital expenditure minimum.
11 For the purpose of this paragraph, the cost of any
12 studies, surveys, designs, plans, working drawings,
13 specifications, and other activities essential to the
14 acquisition, improvement, expansion, or replacement of any
15 plant or equipment with respect to which an expenditure is
16 made shall be included in determining if such expenditure
17 exceeds the capital expenditures minimum. Donations of
18 equipment or facilities to a health care facility which if
19 acquired directly by such facility would be subject to review
20 under this Act shall be considered capital expenditures, and
21 a transfer of equipment or facilities for less than fair
22 market value shall be considered a capital expenditure for
23 purposes of this Act if a transfer of the equipment or
24 facilities at fair market value would be subject to review.
25 "Capital expenditure minimum" means $9,000,000 $1,000,000
26 for major medical equipment and $2,000,000 for all other
27 capital expenditures, both of which shall be annually
28 adjusted to reflect the increase in construction costs due to
29 inflation.
30 "Non-clinical service area" means an area that is not
31 directly related to the diagnosis, treatment, or
32 rehabilitation of persons receiving services from the health
33 care facility. Non-clinical service areas include but are not
34 limited to: chapels; gift shops, news stands, and other
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1 retail space; tunnels, walkways, and elevators; computer
2 systems; telephone systems; projects to comply with life
3 safety codes; educational facilitates; student housing;
4 residential units and apartments; restaurants, cafeterias,
5 snack bars, and other non-patient dining areas;
6 administration and volunteer offices; modernization of
7 structural components (such as roof replacement or masonry
8 work); boiler repair or replacement; vehicle maintenance and
9 storage facilities; parking facilities; mechanical systems
10 for heating, ventilation, and air conditioning; loading
11 docks; and repair or replacement of carpeting, tile, or
12 furniture.
13 "Areawide" means a major area of the State delineated on
14 a geographic, demographic, and functional basis for health
15 planning and for health service and having within it one or
16 more local areas for health planning and health service. The
17 term "region", as contrasted with the term "subregion", and
18 the word "area" may be used synonymously with the term
19 "areawide".
20 "Local" means a subarea of a delineated major area that
21 on a geographic, demographic, and functional basis may be
22 considered to be part of such major area. The term
23 "subregion" may be used synonymously with the term "local".
24 "Areawide health planning organization" or "Comprehensive
25 health planning organization" means the health systems agency
26 designated by the Secretary, Department of Health and Human
27 Services or any successor agency.
28 "Local health planning organization" means those local
29 health planning organizations that are designated as such by
30 the areawide health planning organization of the appropriate
31 area.
32 "Physician" means a person licensed to practice in
33 accordance with the Medical Practice Act of 1987, as amended.
34 "Licensed health care professional" means a person
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1 licensed to practice a health profession under pertinent
2 licensing statutes of the State of Illinois.
3 "Director" means the Director of the Illinois Department
4 of Public Health.
5 "Agency" means the Illinois Department of Public Health.
6 "Comprehensive health planning" means health planning
7 concerned with the total population and all health and
8 associated problems that affect the well-being of people and
9 that encompasses health services, health manpower, and health
10 facilities; and the coordination among these and with those
11 social, economic, and environmental factors that affect
12 health.
13 "Alternative health care model" means a facility or
14 program authorized under the Alternative Health Care Delivery
15 Act.
16 (Source: P.A. 89-499, eff. 6-28-96; 89-530, eff. 7-19-96;
17 90-14, eff. 7-1-97.)
18 (Text of Section after amendment by P.A. 91-656)
19 Sec. 3. As used in this Act:
20 "Health care facilities" means and includes the following
21 facilities and organizations:
22 1. An ambulatory surgical treatment center required
23 to be licensed pursuant to the Ambulatory Surgical
24 Treatment Center Act;
25 2. An institution, place, building, or agency
26 required to be licensed pursuant to the Hospital
27 Licensing Act;
28 3. Skilled and intermediate long term care
29 facilities licensed under the Nursing Home Care Act;
30 4. Hospitals, nursing homes, ambulatory surgical
31 treatment centers, or kidney disease treatment centers
32 maintained by the State or any department or agency
33 thereof; and
34 5. Kidney disease treatment centers, including a
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1 free-standing hemodialysis unit.
2 No federally owned facility shall be subject to the
3 provisions of this Act, nor facilities used solely for
4 healing by prayer or spiritual means.
5 No facility licensed under the Supportive Residences
6 Licensing Act or the Assisted Living and Shared Housing Act
7 shall be subject to the provisions of this Act.
8 A facility designated as a supportive living facility
9 that is in good standing with the demonstration project
10 established under Section 5-5.01a of the Illinois Public Aid
11 Code shall not be subject to the provisions of this Act.
12 This Act does not apply to facilities granted waivers
13 under Section 3-102.2 of the Nursing Home Care Act. However,
14 if a demonstration project under that Act applies for a
15 certificate of need to convert to a nursing facility, it
16 shall meet the licensure and certificate of need requirements
17 in effect as of the date of application.
18 This Act shall not apply to the closure of an entity or a
19 portion of an entity licensed under the Nursing Home Care Act
20 that elects to convert, in whole or in part, to an assisted
21 living or shared housing establishment licensed under the
22 Assisted Living and Shared Housing Establishment Act.
23 With the exception of those health care facilities
24 specifically included in this Section, nothing in this Act
25 shall be intended to include facilities operated as a part of
26 the practice of a physician or other licensed health care
27 professional, whether practicing in his individual capacity
28 or within the legal structure of any partnership, medical or
29 professional corporation, or unincorporated medical or
30 professional group. Further, this Act shall not apply to
31 physicians or other licensed health care professional's
32 practices where such practices are carried out in a portion
33 of a health care facility under contract with such health
34 care facility by a physician or by other licensed health care
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1 professionals, whether practicing in his individual capacity
2 or within the legal structure of any partnership, medical or
3 professional corporation, or unincorporated medical or
4 professional groups. This Act shall apply to construction or
5 modification and to establishment by such health care
6 facility of such contracted portion which is subject to
7 facility licensing requirements, irrespective of the party
8 responsible for such action or attendant financial
9 obligation.
10 "Person" means any one or more natural persons, legal
11 entities, governmental bodies other than federal, or any
12 combination thereof.
13 "Consumer" means any person other than a person (a) whose
14 major occupation currently involves or whose official
15 capacity within the last 12 months has involved the
16 providing, administering or financing of any type of health
17 care facility, (b) who is engaged in health research or the
18 teaching of health, (c) who has a material financial interest
19 in any activity which involves the providing, administering
20 or financing of any type of health care facility, or (d) who
21 is or ever has been a member of the immediate family of the
22 person defined by (a), (b), or (c).
23 "State Board" means the Health Facilities Planning Board.
24 "Construction or modification" means the establishment,
25 erection, building, alteration, reconstruction,
26 modernization, improvement, extension, discontinuation,
27 change of ownership, of or by a health care facility, or the
28 purchase or acquisition by or through a health care facility
29 of equipment or service for diagnostic or therapeutic
30 purposes or for facility administration or operation, or any
31 capital expenditure made by or on behalf of a health care
32 facility which exceeds the capital expenditure minimum.
33 "Establish" means the construction of a health care
34 facility or the replacement of an existing facility on
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1 another site.
2 "Major medical equipment" means medical equipment which
3 is used for the provision of medical and other health
4 services and which costs in excess of the capital expenditure
5 minimum, except that such term does not include medical
6 equipment acquired by or on behalf of a clinical laboratory
7 to provide clinical laboratory services if the clinical
8 laboratory is independent of a physician's office and a
9 hospital and it has been determined under Title XVIII of the
10 Social Security Act to meet the requirements of paragraphs
11 (10) and (11) of Section 1861(s) of such Act. In determining
12 whether medical equipment has a value in excess of the
13 capital expenditure minimum, the value of studies, surveys,
14 designs, plans, working drawings, specifications, and other
15 activities essential to the acquisition of such equipment
16 shall be included.
17 "Capital Expenditure" means an expenditure: (A) made by
18 or on behalf of a health care facility (as such a facility is
19 defined in this Act); and (B) which under generally accepted
20 accounting principles is not properly chargeable as an
21 expense of operation and maintenance, or is made to obtain by
22 lease or comparable arrangement any facility or part thereof
23 or any equipment for a facility or part; and which exceeds
24 the capital expenditure minimum.
25 For the purpose of this paragraph, the cost of any
26 studies, surveys, designs, plans, working drawings,
27 specifications, and other activities essential to the
28 acquisition, improvement, expansion, or replacement of any
29 plant or equipment with respect to which an expenditure is
30 made shall be included in determining if such expenditure
31 exceeds the capital expenditures minimum. Donations of
32 equipment or facilities to a health care facility which if
33 acquired directly by such facility would be subject to review
34 under this Act shall be considered capital expenditures, and
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1 a transfer of equipment or facilities for less than fair
2 market value shall be considered a capital expenditure for
3 purposes of this Act if a transfer of the equipment or
4 facilities at fair market value would be subject to review.
5 "Capital expenditure minimum" means $9,000,000 $1,000,000
6 for major medical equipment and $2,000,000 for all other
7 capital expenditures, both of which shall be annually
8 adjusted to reflect the increase in construction costs due to
9 inflation.
10 "Non-clinical service area" means an area that is not
11 directly related to the diagnosis, treatment, or
12 rehabilitation of persons receiving services from the health
13 care facility. Non-clinical service areas include but are not
14 limited to: chapels; gift shops, news stands, and other
15 retail space; tunnels, walkways, and elevators; computer
16 systems; telephone systems; projects to comply with life
17 safety codes; educational facilitates; student housing;
18 residential units and apartments; restaurants, cafeterias,
19 snack bars, and other non-patient dining areas;
20 administration and volunteer offices; modernization of
21 structural components (such as roof replacement or masonry
22 work); boiler repair or replacement; vehicle maintenance and
23 storage facilities; parking facilities; mechanical systems
24 for heating, ventilation, and air conditioning; loading
25 docks; and repair or replacement of carpeting, tile, or
26 furniture.
27 "Areawide" means a major area of the State delineated on
28 a geographic, demographic, and functional basis for health
29 planning and for health service and having within it one or
30 more local areas for health planning and health service. The
31 term "region", as contrasted with the term "subregion", and
32 the word "area" may be used synonymously with the term
33 "areawide".
34 "Local" means a subarea of a delineated major area that
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1 on a geographic, demographic, and functional basis may be
2 considered to be part of such major area. The term
3 "subregion" may be used synonymously with the term "local".
4 "Areawide health planning organization" or "Comprehensive
5 health planning organization" means the health systems agency
6 designated by the Secretary, Department of Health and Human
7 Services or any successor agency.
8 "Local health planning organization" means those local
9 health planning organizations that are designated as such by
10 the areawide health planning organization of the appropriate
11 area.
12 "Physician" means a person licensed to practice in
13 accordance with the Medical Practice Act of 1987, as amended.
14 "Licensed health care professional" means a person
15 licensed to practice a health profession under pertinent
16 licensing statutes of the State of Illinois.
17 "Director" means the Director of the Illinois Department
18 of Public Health.
19 "Agency" means the Illinois Department of Public Health.
20 "Comprehensive health planning" means health planning
21 concerned with the total population and all health and
22 associated problems that affect the well-being of people and
23 that encompasses health services, health manpower, and health
24 facilities; and the coordination among these and with those
25 social, economic, and environmental factors that affect
26 health.
27 "Alternative health care model" means a facility or
28 program authorized under the Alternative Health Care Delivery
29 Act.
30 (Source: P.A. 90-14, eff. 7-1-97; 91-656, eff. 1-1-01.)
31 (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
32 Sec. 4. There is created the Health Facilities Planning
33 Board, which shall perform such functions as hereinafter
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1 described in this Act.
2 The State Board shall consist of 15 voting members,
3 including: 8 consumer members; one member representing the
4 commercial health insurance industry in Illinois; one member
5 representing proprietary hospitals in Illinois; one member
6 who is actively engaged in the field of hospital management;
7 one member who is a professional nurse registered in
8 Illinois; one member who is a physician in active private
9 practice licensed in Illinois to practice medicine in all of
10 its branches; one member who is actively engaged in the field
11 of skilled nursing or intermediate care facility management;
12 and one member who is actively engaged in the administration
13 of an ambulatory surgical treatment center licensed under the
14 Ambulatory Surgical Treatment Center Act.
15 The State Board shall be appointed by the Governor, with
16 the advice and consent of the Senate. In making the
17 appointments, the Governor shall give consideration to
18 recommendations made by (1) the professional organizations
19 concerned with hospital management for the hospital
20 management appointment, (2) professional organizations
21 concerned with long term care facility management for the
22 long term care facility management appointment, (3)
23 professional medical organizations for the physician
24 appointment, (4) professional nursing organizations for the
25 nurse appointment, and (5) professional organizations
26 concerned with ambulatory surgical treatment centers for the
27 ambulatory surgical treatment center appointment, and shall
28 appoint as consumer members individuals familiar with
29 community health needs but whose interest in the operation,
30 construction or utilization of health care facilities are
31 derived from factors other than those related to his
32 profession, business, or economic gain, and who represent, so
33 far as possible, different geographic areas of the State. Not
34 more than 8 of the appointments shall be of the same
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1 political party.
2 The Secretary of Human Services, the Director of Public
3 Aid, and the Director of Public Health, or their designated
4 representatives, shall serve as ex-officio, non-voting
5 members of the State Board.
6 Of those appointed by the Governor as voting members,
7 each member shall hold office for a term of 3 years:
8 provided, that any member appointed to fill a vacancy
9 occurring prior to the expiration of the term for which his
10 predecessor was appointed shall be appointed for the
11 remainder of such term and the term of office of each
12 successor shall commence on July 1 of the year in which his
13 predecessor's term expires. In making original appointments
14 to the State Board, the Governor shall appoint 5 members for
15 a term of one year, 5 for a term of 2 years, and 3 for a term
16 of 3 years, and each of these terms of office shall commence
17 on July 1, 1974. The initial term of office for the members
18 appointed under this amendatory Act of 1996 shall begin on
19 July 1, 1996 and shall last for 2 years, and each subsequent
20 appointment shall be for a term of 3 years. Each member
21 shall hold office until his successor is appointed and
22 qualified.
23 State Board members, while serving on business of the
24 State Board, shall receive actual and necessary travel and
25 subsistence expenses while so serving away from their places
26 of residence. In addition, while serving on business of the
27 State Board, each member shall receive compensation of $150
28 per day, except that such compensation shall not exceed
29 $7,500 in any one year for any member.
30 The State Board shall provide for its own organization
31 and procedures, including the selection of a Chairman and
32 such other officers as deemed necessary. The Director, with
33 concurrence of the State Board, shall name as full-time
34 Executive Secretary of the State Board, a person qualified in
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1 health care facility planning and in administration. The
2 Agency shall provide administrative and staff support for the
3 State Board. The State Board shall advise the Director of
4 its budgetary and staff needs and consult with the Director
5 on annual budget preparation.
6 The State Board shall meet at least once each quarter, or
7 as often as the Chairman of the State Board deems necessary,
8 or upon the request of a majority of the members.
9 Eight members of the State Board shall constitute a
10 quorum. The affirmative vote of 8 of the members of the
11 State Board shall be necessary for any action requiring a
12 vote to be taken by the State Board. A vacancy in the
13 membership of the State Board shall not impair the right of a
14 quorum to exercise all the rights and perform all the duties
15 of the State Board as provided by this Act.
16 (Source: P.A. 89-674, eff. 8-14-96; 90-14, eff. 7-1-97.)
17 (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
18 Sec. 5. After effective dates set by the State Board,
19 no person shall construct, modify or establish a health care
20 facility or acquire major medical equipment without first
21 obtaining a permit or exemption from the State Board. The
22 State Board shall not delegate to the Executive Secretary of
23 the State Board or any other person or entity the authority
24 to grant permits or exemptions whenever the Executive
25 Secretary or other person or entity would be required to
26 exercise any discretion affecting the decision to grant a
27 permit or exemption. The State Board shall set effective
28 dates applicable to all or to each classification or category
29 of health care facilities and applicable to all or each type
30 of transaction for which a permit is required. Varying
31 effective dates may be set, providing the date or dates so
32 set shall apply uniformly statewide.
33 Notwithstanding any effective dates established by this
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1 Act or by the State Board, no person shall be required to
2 obtain a permit for any purpose under this Act until the
3 State health facilities plan referred to in paragraph (4) of
4 Section 12 of this Act has been approved and adopted by the
5 State Board subsequent to public hearings having been held
6 thereon.
7 A permit or exemption shall be obtained prior to the
8 acquisition of major medical equipment or to the construction
9 or modification of a health care facility which:
10 (a) requires a total capital expenditure in excess
11 of the capital expenditure minimum; or
12 (b) substantially changes the scope or changes the
13 functional operation of the facility; or
14 (c) changes the bed capacity of a health care
15 facility by increasing the total number of beds or by
16 distributing beds among various categories of service or
17 by relocating beds from one physical facility or site to
18 another by more than 10 beds or more than 10% of total
19 bed capacity as defined by the State Board, whichever is
20 less, over a 2 year period.
21 A permit shall be valid only for the defined construction
22 or modifications, site, amount and person named in the
23 application for such permit and shall not be transferable or
24 assignable. A permit shall be valid until such time as the
25 project has been completed, provided that (a) obligation of
26 the project occurs within 12 months following issuance of the
27 permit except for major construction projects such obligation
28 must occur within 18 months following issuance of the permit;
29 and (b) the project commences and proceeds to completion with
30 due diligence. Major construction projects, for the purposes
31 of this Act, shall include but are not limited to: projects
32 for the construction of new buildings; additions to existing
33 facilities; modernization projects whose cost is in excess of
34 $1,000,000 or 10% of the facilities' operating revenue,
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1 whichever is less; and such other projects as the State Board
2 shall define and prescribe pursuant to this Act. The State
3 Board may extend the obligation period upon a showing of good
4 cause by the permit holder. Permits for projects that have
5 not been obligated within the prescribed obligation period
6 shall expire on the last day of that period.
7 Persons who otherwise would be required to obtain a
8 permit shall be exempt from such requirement if the State
9 Board finds that with respect to establishing a new facility
10 or construction of new buildings or additions or
11 modifications to an existing facility, final plans and
12 specifications for such work have prior to October 1, 1974,
13 been submitted to and approved by the Department of Public
14 Health in accordance with the requirements of applicable
15 laws. Such exemptions shall be null and void after December
16 31, 1979 unless binding construction contracts were signed
17 prior to December 1, 1979 and unless construction has
18 commenced prior to December 31, 1979. Such exemptions shall
19 be valid until such time as the project has been completed
20 provided that the project proceeds to completion with due
21 diligence.
22 The acquisition by any person of major medical equipment
23 that will not be owned by or located in a health care
24 facility and that will not be used to provide services to
25 inpatients of a health care facility shall be exempt from
26 review provided that a notice is filed in accordance with
27 exemption requirements.
28 Notwithstanding any provision of this Act to the
29 contrary, no permit or exemption is required before the
30 construction or modification of a non-clinical service area
31 of a health care facility.
32 (Source: P.A. 88-18.)
33 Section 95. No acceleration or delay. Where this Act
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1 makes changes in a statute that is represented in this Act by
2 text that is not yet or no longer in effect (for example, a
3 Section represented by multiple versions), the use of that
4 text does not accelerate or delay the taking effect of (i)
5 the changes made by this Act or (ii) provisions derived from
6 any other Public Act.
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.