State of Illinois
92nd General Assembly
Legislation

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92_HB1824ham001

 










                                           LRB9204832JMmbam01

 1                    AMENDMENT TO HOUSE BILL 1824

 2        AMENDMENT NO.     .  Amend House Bill 1824 on page 1,  in
 3    line 6, by replacing "and 2-5" with "2-5, and 4-2"; and

 4    on  page  3,  in  line  5,  by  inserting after "record." the
 5    following:
 6    "In appointing members to represent providers,  the  Director
 7    of   Public   Health   shall   give   due   consideration  to
 8    recommendations of statewide organizations representing  such
 9    providers."; and

10    on page 3, by inserting after line 14 the following:

11        "(20 ILCS 2215/4-2) (from Ch. 111 1/2, par. 6504-2)
12        Sec. 4-2.  Powers and duties.
13        (a)  The  Illinois  Health  Care Cost Containment Council
14    may  enter  into  any   agreement   with   any   corporation,
15    association or other entity it deems appropriate to undertake
16    the  process  described  in  this Article for the collection,
17    compilation, or and analysis of data collected by the Council
18    and to conduct or  contract  for  studies  on  health-related
19    questions  carried  out  in pursuance of the purposes of this
20    Article.  The agreement  may  provide  for  the  corporation,
21    association  or  entity  to  prepare  and  distribute or make
22    available  data  to  health  care  providers,   health   care
 
                            -2-            LRB9204832JMmbam01
 1    subscribers,  third-party  payors, government and the general
 2    public, in accordance with the rules of  confidentiality  and
 3    review to be developed under this Act.
 4        (a-5)  On  or  before December 31, 2001, the Council must
 5    complete an analysis of whether the functions of  collecting,
 6    compiling,  analyzing,  or reporting data as required by this
 7    Article IV could be performed more economically under one  or
 8    more agreements as authorized by subsection (a) than they can
 9    be  performed  internally  by  the  Council.   If the Council
10    determines that one or  more  of  these  functions  could  be
11    performed  more economically by an agreement as authorized by
12    subsection (a), the Council  must  enter  into  one  or  more
13    agreements  for  the  performance  of  such  functions.   The
14    Council  must periodically review any agreement entered under
15    subsection (a) to ensure that they remain the most economical
16    method of performing the work that  is  the  subject  of  the
17    agreement or agreements.
18        (b)  The  input  data  collected  by and furnished to the
19    Council or  designated  corporation,  association  or  entity
20    pursuant  to  this Section shall not be a public record under
21    the Illinois Freedom of Information Act.  It is the intent of
22    this Act and of the regulations written pursuant to  it    to
23    protect the confidentiality of individual patient information
24    and  the  proprietary  information  of  commercial  insurance
25    carriers  and  health  care  providers.   Data  specified  in
26    subsections  (e)  and  (e-5)  shall be released on a hospital
27    specific and licensed ambulatory  surgical  treatment  center
28    specific  basis to facilitate comparisons among hospitals and
29    licensed ambulatory surgical treatment centers by purchasers.
30        (c)  The Council shall require the Departments of  Public
31    Health  and  Public Aid and hospitals located in the State to
32    assist the Council in gathering and submitting the  following
33    hospital-specific  financial  information, and the Council is
34    authorized to share this data with both Departments to reduce
 
                            -3-            LRB9204832JMmbam01
 1    the  burden  on  hospitals   by   avoiding   duplicate   data
 2    collection:

 3    OPERATING REVENUES
 4        (1)  Net patient service revenue
 5        (2)  Other revenue
 6        (3)  Total operating revenue

 7    OPERATING EXPENSES
 8        (4)  Bad debt expense
 9        (5)  Total operating expenses

10    NON-OPERATING GAINS/LOSSES
11        (6)  Total non-operating gains
12        (7)  Total non-operating losses

13    PATIENT CARE REVENUES
14        (8)  Gross inpatient revenue
15        (9)  Gross outpatient revenue
16        (10)  Other Patient care revenue
17        (11)  Total patient revenue
18        (12)  Total gross patient care revenue
19        (13)  Medicare gross revenue
20        (14)  Medicaid gross revenue
21        (15)  Total other gross revenue

22    DEDUCTIONS FROM REVENUE
23        (16)  Charity care
24        (17)  Medicare allowance
25        (18)  Medicaid allowance
26        (19)  Other contractual allowances
27        (20)  Other allowances
28        (21)  Total Deductions

29    ASSETS
30        (22)  Operating cash and short-term investments
31        (23)  Estimated patient accounts receivable
 
                            -4-            LRB9204832JMmbam01
 1        (24)  Other current assets
 2        (25)  Total current assets
 3        (26)  Total other assets
 4        (27)  Total Assets

 5    LIABILITIES AND FUND BALANCES
 6        (28)  Total current liabilities
 7        (29)  Long Term Debt
 8        (30)  Other liabilities
 9        (31)  Total liabilities
10        (32)  Total liabilities and fund balances
11        All financial data collected by the Council from publicly
12    available  sources  such  as  the  HCFA  is releasable by the
13    Council on a hospital specific basis when appropriate.
14        (d)  Uniform    Provider    Utilization    and     Charge
15    Information.  The Council shall require that:
16             (1)  Hospitals  licensed  to operate in the State of
17        Illinois adopt a uniform system  for  submitting  patient
18        charges  for  payment  from  public  and  private  payors
19        effective  January  1,  1985.  This system shall be based
20        upon  adoption  of  the  uniform  hospital  billing  form
21        (UB-92) or its successor form developed by  the  National
22        Uniform Billing Committee.
23             (2)  (Blank).
24             (3)  The   Department   of   Insurance  require  all
25        third-party  payors,  including  but  not   limited   to,
26        licensed   insurers,   medical   and   hospital   service
27        corporations,   health   maintenance  organizations,  and
28        self-funded employee health plans, to accept the  uniform
29        billing   form,   without   attachment  as  submitted  by
30        hospitals pursuant to paragraph  (1)  of  subsection  (d)
31        above,  effective  January  1,  1985;  provided, however,
32        nothing shall prevent all such third  party  payors  from
33        requesting  additional information necessary to determine
34        eligibility for benefits or liability  for  reimbursement
 
                            -5-            LRB9204832JMmbam01
 1        for services provided.
 2        (e)  The   Council,   in   cooperation   with  the  State
 3    Departments of Public  Aid,  Insurance,  and  Public  Health,
 4    shall  establish a system for the collection of the following
 5    information from hospitals utilizing the raw  data  available
 6    on  the  uniform  billing forms.  Such data shall include the
 7    following  elements  and  other  elements  contained  on  the
 8    uniform billing form or  its  successor  form  determined  as
 9    necessary by the Council:
10        (1)  Patient date of birth
11        (2)  Patient sex
12        (3)  Patient zip code
13        (4)  Third-party coverage
14        (5)  Date of admission
15        (6)  Source of admission
16        (7)  Type of admission
17        (8)  Discharge date
18        (9)  Principal and up to 8 other diagnoses
19        (10)  Principal procedure and date
20        (11)  Patient status
21        (12)  Other procedures and dates
22        (13)  Total charges and components of those charges
23        (14)  Attending  and  consulting physician identification
24    numbers
25        (15)  Hospital identification number
26        (16)  An alphanumeric number based on the information  to
27    identify the payor
28        (17)  Principal source of payment.
29        (e-5)  The Council, in cooperation with the Department of
30    Public  Aid,  the Department of Insurance, and the Department
31    of Public Health, shall establish a system for the collection
32    of the following  information  for  each  outpatient  surgery
33    performed  at  hospitals  and  licensed  ambulatory  surgical
34    treatment  centers using the raw data available on outpatient
 
                            -6-            LRB9204832JMmbam01
 1    billing forms submitted by hospitals and licensed  ambulatory
 2    surgical  treatment centers to payors.  The data must include
 3    the following elements, if available on  the  billing  forms,
 4    and  other  elements  contained on the billing forms that the
 5    Council determines are necessary:
 6             (1)  patient date of birth;
 7             (2)  patient sex;
 8             (3)  patient zip code;
 9             (4)  third-party coverage;
10             (5)  date of admission;
11             (6)  source of admission;
12             (7)  type of admission;
13             (8)  discharge date;
14             (9)  principal  diagnosis  and   up   to   8   other
15        diagnoses;
16             (10)  principal   procedure  and  the  date  of  the
17        procedure;
18             (11)  patient status;
19             (12)  other  procedures  and  the  dates  of   those
20        procedures;
21             (13)  attending     and     consulting     physician
22        identification numbers;
23             (14)  hospital   or   licensed  ambulatory  surgical
24        treatment center identification number;
25             (15)  an   alphanumeric   number   based   on    the
26        information needed to identify the payor; and
27             (16)  principal source of payment.
28        (f)  Extracts of the UB-92 transactions shall be prepared
29    by  hospitals  according  to  regulations  promulgated by the
30    Council and submitted in electronic format to the Council  or
31    the  corporation,  association  or  entity  designated by the
32    Council.
33        For hospitals unable to  submit  extracts  in  electronic
34    format,  the  Council shall determine an alternate method for
 
                            -7-            LRB9204832JMmbam01
 1    submission of data.  Such extract reporting systems shall  be
 2    in operation before January 1, 1987; however, the Council may
 3    grant time extensions to individual hospital.
 4        (f-5)  Extracts of the billing forms shall be prepared by
 5    licensed  ambulatory  surgical treatment centers according to
 6    rules adopted by the Council and submitted to the Council  or
 7    a  corporation,  association,  or  entity  designated  by the
 8    Council. Electronic submissions  shall  be  encouraged.   For
 9    licensed  ambulatory  surgical  treatment  centers  unable to
10    submit extracts in an  electronic  format  the  Council  must
11    determine an alternate method for submission of data.
12        (g)  Under no circumstances shall patient name and social
13    security number appear on the extracts.
14        (h)  Hospitals and licensed ambulatory surgical treatment
15    centers shall be assigned a standard identification number by
16    the Council to be used in the submission of all data.
17        (i)  The  Council  shall  collect a 100% inpatient sample
18    from hospitals  annually.  The  Council  shall  require  each
19    hospital  in  the  State  to  submit  the UB-92 data extracts
20    required in  subsection  (e)  to  the  Council,  except  that
21    hospitals  with  fewer  than  50  beds may be exempted by the
22    Council from the filing requirements if  they  prove  to  the
23    Council's  satisfaction  that  the  requirements would impose
24    undue economic hardship and if the  Council  determines  that
25    the  data submitted from these hospitals are not essential to
26    its data base and its concomitant health care cost comparison
27    efforts.
28        (i-5)  The Council shall collect up to a 100%  outpatient
29    sample   annually  from  hospitals  and  licensed  ambulatory
30    surgical treatment centers.  The Council shall  require  each
31    hospital and licensed ambulatory surgical treatment center in
32    the   State  to  submit  the  data  extracts  required  under
33    subsection (e-5) to the Council, except  that  hospitals  and
34    licensed   ambulatory   surgical  treatment  centers  may  be
 
                            -8-            LRB9204832JMmbam01
 1    exempted by the Council from the filing requirements  if  the
 2    hospitals  or  licensed ambulatory surgical treatment centers
 3    prove to the Council's  satisfaction  that  the  requirements
 4    would  impose  undue  economic  hardship  and  if the Council
 5    determines that the data submitted from those  hospitals  and
 6    licensed   ambulatory  surgical  treatment  centers  are  not
 7    essential to  the  Council's  database  and  its  concomitant
 8    health care comparison efforts.
 9        (i-10)  The  outpatient  data  shall  be collected by the
10    Council on a phase-in and trial basis for a  one-year  period
11    beginning  on  January  1, 2001.  The Council shall implement
12    outpatient data collection for reporting  purposes  beginning
13    on January 1, 2002.
14        (j)  The information submitted to the Council pursuant to
15    subsections  (e) and (e-5) shall be reported for each primary
16    payor   category,   including   Medicare,   Medicaid,   other
17    government programs, private  insurance,  health  maintenance
18    organizations,   self-insured,   private  pay  patients,  and
19    others.  Preferred provider organization reimbursement  shall
20    also be reported for each primary third party payor category.
21        (k)  The   Council   shall  require  and  the  designated
22    corporation, association  or  entity,  if  applicable,  shall
23    prepare  quarterly  basic  reports in the aggregate on health
24    care cost and utilization trends in  Illinois.   The  Council
25    shall  provide  these  reports  to  the public, if requested.
26    These shall include,  but  not  be  limited  to,  comparative
27    information  on  average  charges, total and ancillary charge
28    components,  length  of  stay   on   diagnosis-specific   and
29    procedure  specific cases, and number of discharges, compiled
30    in aggregate by hospital  and  licensed  ambulatory  surgical
31    treatment   center,   by  diagnosis,  and  by  primary  payor
32    category.
33        (l)  The  Council  shall,  from   information   submitted
34    pursuant  to  subsection (e), prepare an annual report in the
 
                            -9-            LRB9204832JMmbam01
 1    aggregate by hospital containing the following:
 2             (1)  the ratio of caesarean  section  deliveries  to
 3        total deliveries;
 4             (2)  the  average  length  of  stay for patients who
 5        undergo caesarean sections;
 6             (3)  the average total charges for patients who have
 7        normal deliveries without any significant complications;
 8             (4)  the average  total  charges  for  patients  who
 9        deliver by caesarean section.
10    The  Council  shall  provide  this  report  to the public, if
11    requested.
12        (l-5)  (Blank).
13        (m)  Prior  to  the  release  or  dissemination  of   any
14    provider-specific  data for any purpose permitted by this Act
15    these reports, the  Council  or  the  designated  corporation
16    shall  notify  each  provider of the release or dissemination
17    and  permit  each  provider  a   reasonable   providers   the
18    opportunity   to  verify  the  accuracy  of  any  information
19    pertaining to the  provider.   The  Council  shall  give  any
20    requesting  provider,  or its designated agent, a copy of the
21    data to  be  released  or  disseminated  pertaining  to  that
22    provider.   The  providers,  or  their designated agents, may
23    submit to the  Council  any  corrections  or  errors  in  the
24    compilation  of  the  data  with  any supporting evidence and
25    documents the providers or agents may submit.  The Council or
26    corporation shall correct data  found  to  be  in  error  and
27    include additional commentary as requested by the provider or
28    agent  for  major  deviations in the charges from the average
29    charges. For purposes of  this  subsection  (m),  "providers"
30    includes  hospitals,  ambulatory  surgical treatment centers,
31    and physicians licensed to practice medicine in  all  of  its
32    branches.
33        (n)  In  addition  to  the  reports  indicated above, the
34    Council shall respond to requests by agencies  of  government
 
                            -10-           LRB9204832JMmbam01
 1    and  organizations  in  the private sector for data products,
 2    special studies and analysis of data  collected  pursuant  to
 3    this  Section.   Such reports shall be undertaken only by the
 4    agreement of a majority of the members  of  the  Council  who
 5    shall  designate  the  form in which the information shall be
 6    made available.  The Council or the corporation,  association
 7    or  entity  in  consultation  with  the  Council  shall  also
 8    determine  a  fee  to  be charged to the requesting agency or
 9    private sector organization to cover the direct and  indirect
10    costs  for producing such a report, and shall permit affected
11    providers the rights to review the  accuracy  of  the  report
12    before it is released.  Such reports  shall not be subject to
13    The Freedom of Information Act.
14    (Source: P.A. 91-756, eff. 6-2-00.)".

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