State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Engrossed ][ Senate Amendment 002 ]

91_SB1844sam001

 










                                          SRS91SB1844DLsaam01

 1                    AMENDMENT TO SENATE BILL 1844

 2        AMENDMENT NO.     .  Amend Senate Bill 1844, on page  10,
 3    line 3, by deleting "and adding Section 3-120"; and

 4    on page 10, by deleting lines 4 through 9; and

 5    on  page  13,  by  replacing  lines  19  through  31 with the
 6    following:
 7    "changing Section 5-5.5 as follows:

 8        (305 ILCS 5/5-5.5) (from Ch. 23, par. 5-5.5)
 9        Sec. 5-5.5.  Elements of Payment Rate.
10        (a)  The  Department  of  Public  Aid  shall  develop   a
11    prospective  method for determining payment rates for skilled
12    nursing and intermediate care services in nursing  facilities
13    composed of the following cost elements:
14             (1)  Standard   Services,  with  the  cost  of  this
15        component being determined by  taking  into  account  the
16        actual  costs to the facilities of these services subject
17        to cost ceilings to be defined in the Department's rules.
18             (2)  Resident  Services,  with  the  cost  of   this
19        component  being  determined  by  taking into account the
20        actual costs, needs and utilization of these services, as
21        derived from an assessment of the resident needs  in  the
22        nursing  facilities.   The  Department  shall adopt rules
 
                            -2-           SRS91SB1844DLsaam01
 1        governing reimbursement for resident services  as  listed
 2        in  Section  5-1.1.  Surveys  or  assessments of resident
 3        needs under this Section shall include a  review  by  the
 4        facility  of  the  results  of  such  assessments  and  a
 5        discussion  of  issues  in dispute with authorized survey
 6        staff, unless the facility elects not to  participate  in
 7        such   a  review  process.   Surveys  or  assessments  of
 8        resident  needs  under  this  Section  may  be  conducted
 9        semi-annually and  payment  rates  relating  to  resident
10        services  may  be  changed  on  a semi-annual basis.  The
11        Illinois Department shall initiate a project, either on a
12        pilot basis  or  Statewide,  to  reimburse  the  cost  of
13        resident  services  based on a methodology which utilizes
14        an assessment of resident needs to determine the level of
15        reimbursement. This methodology shall be  different  from
16        the  payment  criteria  for resident services utilized by
17        the Illinois Department on July 1,  1981.   On  March  1,
18        1982,  and each year thereafter, until such time when the
19        Illinois Department adopts the methodology used  in  such
20        project  for  use  statewide  or  the Illinois Department
21        reports to the Citizens Assembly/Council  on  Public  Aid
22        that  the methodology did not meet the Department's goals
23        and objectives and therefore is ceasing such project, the
24        Illinois Department shall report to the General  Assembly
25        on  the  implementation and progress of such project. The
26        report shall include:
27                  (A)  A statement of the  Illinois  Department's
28             goals and objectives for such project;
29                  (B)  A  description  of such project, including
30             the number and type of nursing  facilities  involved
31             in the project;
32                  (C)  A  description  of the methodology used in
33             such project;
34                  (D)  A description of the Illinois Department's
 
                            -3-           SRS91SB1844DLsaam01
 1             application of the methodology;
 2                  (E)  A statement on the methodology's effect on
 3             the quality of care given to residents in the sample
 4             nursing facilities; and
 5                  (F)  A statement on the cost of the methodology
 6             used in such project and a comparison of  this  cost
 7             with the cost of the current payment criteria.
 8             (3)  Ancillary Services, with the payment rate being
 9        developed  for  each individual type of service.  Payment
10        shall be  made  only  when  authorized  under  procedures
11        developed by the Department of Public Aid.
12             (4)  Nurse's  Aide  Training,  with the cost of this
13        component being determined by  taking  into  account  the
14        actual cost to the facilities of such training.
15             (5)  Real  Estate  Taxes,  with  the  cost  of  this
16        component  being  determined  by  taking into account the
17        figures contained in the most  currently  available  cost
18        reports  (with  no imposition of maximums) updated to the
19        midpoint of the current rate  year  for  long  term  care
20        services rendered between July 1, 1984 and June 30, 1985,
21        and  with  the cost of this component being determined by
22        taking into account the actual 1983 taxes for  which  the
23        nursing  homes  were  assessed  (with  no  imposition  of
24        maximums)  updated  to  the  midpoint of the current rate
25        year for long term care services rendered between July 1,
26        1985 and June 30, 1986.
27        (b)  In developing a prospective method  for  determining
28    payment  rates  for  skilled  nursing  and  intermediate care
29    services in nursing facilities, the Department of Public  Aid
30    shall consider the following cost elements:
31             (1)  Reasonable capital cost determined by utilizing
32        incurred  interest  rate  and  the  current  value of the
33        investment, including land, utilizing composite rates, or
34        by utilizing such other reasonable cost  related  methods
 
                            -4-           SRS91SB1844DLsaam01
 1        determined by the Department. However, beginning with the
 2        rate  reimbursement  period  effective  July 1, 1987, the
 3        Department  shall  be   prohibited   from   establishing,
 4        including,  and  implementing  any depreciation factor in
 5        calculating the capital cost element.
 6             (2)  Profit, with the actual amount  being  produced
 7        and  accruing to the providers in the form of a return on
 8        their total investment, on the basis of their ability  to
 9        economically  and  efficiently deliver a type of service.
10        The method of payment may assure the  opportunity  for  a
11        profit,  but  shall not guarantee or establish a specific
12        amount as a cost.
13        (c)  The Illinois Department may implement the amendatory
14    changes to this Section made by this amendatory Act  of  1991
15    through  the  use  of  emergency rules in accordance with the
16    provisions of Section 5.02  of  the  Illinois  Administrative
17    Procedure  Act.  For  purposes of the Illinois Administrative
18    Procedure  Act,  the  adoption  of  rules  to  implement  the
19    amendatory changes to this Section made  by  this  amendatory
20    Act  of  1991  shall be deemed an emergency and necessary for
21    the public interest, safety and welfare.
22        (d)  No later than January 1,  2001,  the  Department  of
23    Public   Aid   shall   file   with  the  Joint  Committee  on
24    Administrative Rules, pursuant to the Illinois Administrative
25    Procedure Act, a proposed rule, or a proposed amendment to an
26    existing rule, regarding payment  for  appropriate  services,
27    including  assessment,  care planning, and treatment provided
28    by nursing facilities to residents who have a serious  mental
29    illness.
30    (Source: P.A. 86-651; 86-705; 86-1028; 87-14; 87-435.)"; and

31    by deleting all of pages 14 through 36; and

32    on page 37, by deleting lines 1 through 4.

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