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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, orandanalysis 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 15these reports, the Council or the designated corporation 16 shall notify each provider of the release or dissemination 17 and permit each provider a reasonableproviders the18 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.)".