99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3222
 
Introduced , by Rep. Pamela Reaves-Harris
 
SYNOPSIS AS INTRODUCED:








20 ILCS 3960/3 from Ch. 111 1/2, par. 1153
210 ILCS 85/4 from Ch. 111 1/2, par. 145

 Amends the Illinois Health Facilities Planning Act. Provides that the term "health care facilities" does not include a facility licensed as a hospital under the Hospital Licensing Act that reopens under new ownership at the same location within 36 months of the facility's closure. Amends the Hospital Licensing Act. Provides that any hospital that has closed for any reason, except for license revocation by the Department of Public Health for failure to comply with the Act, may reopen under new ownership or management, or both, within 3 years of its closing date without reapplying for a license under the Act if the facility is reopening at the same location and in the same physical structure. Effective immediately.



LRB099 10152 RPS 30375 b


FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB3222LRB099 10152 RPS 30375 b



1 AN ACT concerning regulation.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Health Facilities Planning Act is 
5amended by changing Section 3 as follows:




6 (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)



7 (Section scheduled to be repealed on December 31, 2019)
8 Sec. 3. Definitions. As used in this Act:

9 "Health care facilities" means and includes
the following 
10facilities, organizations, and related persons:

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 Licensing 
16 Act.

17  (3) Skilled and intermediate long term care facilities 
18 licensed under the
Nursing
Home Care Act.
19   (A) If a demonstration project under the Nursing 
20 Home Care Act applies for a certificate of need to 
21 convert to a nursing facility, it shall meet the 
22 licensure and certificate of need requirements in 
23 effect as of the date of application.
 
 
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1   (B) Except as provided in item (A) of this 
2 subsection, this Act does not apply to facilities 
3 granted waivers under Section 3-102.2 of the Nursing 
4 Home Care Act.

5  (3.5) Skilled and intermediate care facilities 
6 licensed under the ID/DD Community Care Act. (A) No permit 
7 or exemption is required for a facility licensed under the 
8 ID/DD Community Care Act prior to the reduction of the 
9 number of beds at a facility. If there is a total reduction 
10 of beds at a facility licensed under the ID/DD Community 
11 Care Act, this is a discontinuation or closure of the 
12 facility. If a facility licensed under the ID/DD Community 
13 Care Act reduces the number of beds or discontinues the 
14 facility, that facility must notify the Board as provided 
15 in Section 14.1 of this Act. 
16  (3.7) Facilities licensed under the Specialized Mental 
17 Health Rehabilitation Act of 2013. 
18  (4) Hospitals, nursing homes, ambulatory surgical 
19 treatment centers, or
kidney disease treatment centers

20 maintained by the State or any department or agency 
21 thereof.

22  (5) Kidney disease treatment centers, including a 
23 free-standing
hemodialysis unit required to be licensed 
24 under the End Stage Renal Disease Facility Act.

25   (A) This Act does not apply to a dialysis facility 
26 that provides only dialysis training, support, and 
 
 
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1 related services to individuals with end stage renal 
2 disease who have elected to receive home dialysis.
3   (B) This Act does not apply to a dialysis unit 
4 located in a licensed nursing home that offers or 
5 provides dialysis-related services to residents with 
6 end stage renal disease who have elected to receive 
7 home dialysis within the nursing home.
8   (C) The Board, however, may require dialysis 
9 facilities and licensed nursing homes under items (A) 
10 and (B) of this subsection to report statistical 
11 information on a quarterly basis to the Board to be 
12 used by the Board to conduct analyses on the need for 
13 proposed kidney disease treatment centers. 
14  (6) An institution, place, building, or room used for 
15 the performance of
outpatient surgical procedures that is 
16 leased, owned, or operated by or on
behalf of an 
17 out-of-state facility.

18  (7) An institution, place, building, or room used for 
19 provision of a health care category of service, including, 
20 but not limited to, cardiac catheterization and open heart 
21 surgery.
22  (8) An institution, place, building, or room housing 
23 major medical equipment used in the direct clinical 
24 diagnosis or treatment of patients, and whose project cost 
25 is in excess of the capital expenditure minimum. 
26 "Health care facilities" does not include the following 
 
 
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1entities or facility transactions:
2  (1) Federally-owned facilities.
3  (2) Facilities used solely for healing by prayer or 
4 spiritual means.
5  (3) An existing facility located on any campus facility 
6 as defined in Section 5-5.8b of the Illinois Public Aid 
7 Code, provided that the campus facility encompasses 30 or 
8 more contiguous acres and that the new or renovated 
9 facility is intended for use by a licensed residential 
10 facility.
11  (4) Facilities licensed under the Supportive 
12 Residences Licensing Act or the Assisted Living and Shared 
13 Housing Act.
14  (5) Facilities designated as supportive living 
15 facilities that are in good standing with the program 
16 established under Section 5-5.01a of the Illinois Public 
17 Aid Code.
18  (6) Facilities established and operating under the 
19 Alternative Health Care Delivery Act as a children's 
20 community-based health care center children's respite care 
21 center alternative health care model demonstration program 
22 or as an Alzheimer's Disease Management Center alternative 
23 health care model demonstration program.
24  (7) The closure of an entity or a portion of an entity 
25 licensed under the Nursing Home Care Act, the Specialized 
26 Mental Health Rehabilitation Act of 2013, or the ID/DD 
 
 
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1 Community Care Act, with the exception of facilities 
2 operated by a county or Illinois Veterans Homes, that elect 
3 to convert, in whole or in part, to an assisted living or 
4 shared housing establishment licensed under the Assisted 
5 Living and Shared Housing Act and with the exception of a 
6 facility licensed under the Specialized Mental Health 
7 Rehabilitation Act of 2013 in connection with a proposal to 
8 close a facility and re-establish the facility in another 
9 location.
10  (8) Any change of ownership of a health care healthcare 
11 facility that is licensed under the Nursing Home Care Act, 
12 the Specialized Mental Health Rehabilitation Act of 2013, 
13 or the ID/DD Community Care Act, with the exception of 
14 facilities operated by a county or Illinois Veterans Homes. 
15 Changes of ownership of facilities licensed under the 
16 Nursing Home Care Act must meet the requirements set forth 
17 in Sections 3-101 through 3-119 of the Nursing Home Care 
18 Act. children's community-based health care center of 2013 
19 and with the exception of a facility licensed under the 
20 Specialized Mental Health Rehabilitation Act of 2013 in 
21 connection with a proposal to close a facility and 
22 re-establish the facility in another location of 2013

23  (9) Any facility licensed as a hospital under the 
24 Hospital Licensing Act that reopens under new ownership at 
25 the same location within 36 months of the facility's 
26 closure. 
 
 
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1 With the exception of those health care facilities 
2specifically
included in this Section, nothing in this Act 
3shall be intended to
include facilities operated as a part of 
4the practice of a physician or
other licensed health care 
5professional, whether practicing in his
individual capacity or 
6within the legal structure of any partnership,
medical or 
7professional corporation, or unincorporated medical or

8professional group. Further, this Act shall not apply to 
9physicians or
other licensed health care professional's 
10practices where such practices
are carried out in a portion of 
11a health care facility under contract
with such health care 
12facility by a physician or by other licensed
health care 
13professionals, whether practicing in his individual capacity

14or within the legal structure of any partnership, medical or

15professional corporation, or unincorporated medical or 
16professional
groups, unless the entity constructs, modifies, 
17or establishes a health care facility as specifically defined 
18in this Section. This Act shall apply to construction or

19modification and to establishment by such health care facility 
20of such
contracted portion which is subject to facility 
21licensing requirements,
irrespective of the party responsible 
22for such action or attendant
financial obligation. 

23 "Person" means any one or more natural persons, legal 
24entities,
governmental bodies other than federal, or any 
25combination thereof.

26 "Consumer" means any person other than a person (a) whose 
 
 
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1major
occupation currently involves or whose official capacity 
2within the last
12 months has involved the providing, 
3administering or financing of any
type of health care facility, 
4(b) who is engaged in health research or
the teaching of 
5health, (c) who has a material financial interest in any

6activity which involves the providing, administering or 
7financing of any
type of health care facility, or (d) who is or 
8ever has been a member of
the immediate family of the person 
9defined by (a), (b), or (c).

10 "State Board" or "Board" means the Health Facilities and 
11Services Review Board.

12 "Construction or modification" means the establishment, 
13erection,
building, alteration, reconstruction, modernization, 
14improvement,
extension, discontinuation, change of ownership, 
15of or by a health care
facility, or the purchase or acquisition 
16by or through a health care facility
of
equipment or service 
17for diagnostic or therapeutic purposes or for
facility 
18administration or operation, or any capital expenditure made by

19or on behalf of a health care facility which
exceeds the 
20capital expenditure minimum; however, any capital expenditure

21made by or on behalf of a health care facility for (i) the 
22construction or
modification of a facility licensed under the 
23Assisted Living and Shared
Housing Act or (ii) a conversion 
24project undertaken in accordance with Section 30 of the Older 
25Adult Services Act shall be excluded from any obligations under 
26this Act.

 
 
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1 "Establish" means the construction of a health care 
2facility or the
replacement of an existing facility on another 
3site or the initiation of a category of service.

4 "Major medical equipment" means medical equipment which is 
5used for the
provision of medical and other health services and 
6which costs in excess
of the capital expenditure minimum, 
7except that such term does not include
medical equipment 
8acquired
by or on behalf of a clinical laboratory to provide 
9clinical laboratory
services if the clinical laboratory is 
10independent of a physician's office
and a hospital and it has 
11been determined under Title XVIII of the Social
Security Act to 
12meet the requirements of paragraphs (10) and (11) of Section

131861(s) of such Act. In determining whether medical equipment 
14has a value
in excess of the capital expenditure minimum, the 
15value of studies, surveys,
designs, plans, working drawings, 
16specifications, and other activities
essential to the 
17acquisition of such equipment shall be included.

18 "Capital Expenditure" means an expenditure: (A) made by or 
19on behalf of
a health care facility (as such a facility is 
20defined in this Act); and
(B) which under generally accepted 
21accounting principles is not properly
chargeable as an expense 
22of operation and maintenance, or is made to obtain
by lease or 
23comparable arrangement any facility or part thereof or any

24equipment for a facility or part; and which exceeds the capital 
25expenditure
minimum.

26 For the purpose of this paragraph, the cost of any studies, 
 
 
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1surveys, designs,
plans, working drawings, specifications, and 
2other activities essential
to the acquisition, improvement, 
3expansion, or replacement of any plant
or equipment with 
4respect to which an expenditure is made shall be included
in 
5determining if such expenditure exceeds the capital 
6expenditures minimum.
Unless otherwise interdependent, or 
7submitted as one project by the applicant, components of 
8construction or modification undertaken by means of a single 
9construction contract or financed through the issuance of a 
10single debt instrument shall not be grouped together as one 
11project. Donations of equipment
or facilities to a health care 
12facility which if acquired directly by such
facility would be 
13subject to review under this Act shall be considered capital

14expenditures, and a transfer of equipment or facilities for 
15less than fair
market value shall be considered a capital 
16expenditure for purposes of this
Act if a transfer of the 
17equipment or facilities at fair market value would
be subject 
18to review.

19 "Capital expenditure minimum" means $11,500,000 for 
20projects by hospital applicants, $6,500,000 for applicants for 
21projects related to skilled and intermediate care long-term 
22care facilities licensed under the Nursing Home Care Act, and 
23$3,000,000 for projects by all other applicants, which shall be 
24annually
adjusted to reflect the increase in construction costs 
25due to inflation, for major medical equipment and for all other

26capital expenditures.

 
 
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1 "Non-clinical service area" means an area (i) for the 
2benefit of the
patients, visitors, staff, or employees of a 
3health care facility and (ii) not
directly related to the 
4diagnosis, treatment, or rehabilitation of persons
receiving 
5services from the health care facility. "Non-clinical service 
6areas"
include, but are not limited to, chapels; gift shops; 
7news stands; computer
systems; tunnels, walkways, and 
8elevators; telephone systems; projects to
comply with life 
9safety codes; educational facilities; student housing;

10patient, employee, staff, and visitor dining areas; 
11administration and
volunteer offices; modernization of 
12structural components (such as roof
replacement and masonry 
13work); boiler repair or replacement; vehicle
maintenance and 
14storage facilities; parking facilities; mechanical systems for

15heating, ventilation, and air conditioning; loading docks; and 
16repair or
replacement of carpeting, tile, wall coverings, 
17window coverings or treatments,
or furniture. Solely for the 
18purpose of this definition, "non-clinical service
area" does 
19not include health and fitness centers.

20 "Areawide" means a major area of the State delineated on a

21geographic, demographic, and functional basis for health 
22planning and
for health service and having within it one or 
23more local areas for
health planning and health service. The 
24term "region", as contrasted
with the term "subregion", and the 
25word "area" may be used synonymously
with the term "areawide".

26 "Local" means a subarea of a delineated major area that on 
 
 
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1a
geographic, demographic, and functional basis may be 
2considered to be
part of such major area. The term "subregion" 
3may be used synonymously
with the term "local".

4 "Physician" means a person licensed to practice in 
5accordance with
the Medical Practice Act of 1987, as amended.

6 "Licensed health care professional" means a person 
7licensed to
practice a health profession under pertinent 
8licensing statutes of the
State of Illinois.

9 "Director" means the Director of the Illinois Department of 
10Public Health.

11 "Agency" means the Illinois Department of Public Health.

12 "Alternative health care model" means a facility or program 
13authorized
under the Alternative Health Care Delivery Act.

14 "Out-of-state facility" means a person that is both (i) 
15licensed as a
hospital or as an ambulatory surgery center under 
16the laws of another state
or that
qualifies as a hospital or an 
17ambulatory surgery center under regulations
adopted pursuant 
18to the Social Security Act and (ii) not licensed under the

19Ambulatory Surgical Treatment Center Act, the Hospital 
20Licensing Act, or the
Nursing Home Care Act. Affiliates of 
21out-of-state facilities shall be
considered out-of-state 
22facilities. Affiliates of Illinois licensed health
care 
23facilities 100% owned by an Illinois licensed health care 
24facility, its
parent, or Illinois physicians licensed to 
25practice medicine in all its
branches shall not be considered 
26out-of-state facilities. Nothing in
this definition shall be

 
 
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1construed to include an office or any part of an office of a 
2physician licensed
to practice medicine in all its branches in 
3Illinois that is not required to be
licensed under the 
4Ambulatory Surgical Treatment Center Act.

5 "Change of ownership of a health care facility" means a 
6change in the
person
who has ownership or
control of a health 
7care facility's physical plant and capital assets. A change
in 
8ownership is indicated by
the following transactions: sale, 
9transfer, acquisition, lease, change of
sponsorship, or other 
10means of
transferring control.

11 "Related person" means any person that: (i) is at least 50% 
12owned, directly
or indirectly, by
either the health care 
13facility or a person owning, directly or indirectly, at
least 
1450% of the health
care facility; or (ii) owns, directly or 
15indirectly, at least 50% of the
health care facility.

16 "Charity care" means care provided by a health care 
17facility for which the provider does not expect to receive 
18payment from the patient or a third-party payer.
19 "Freestanding emergency center" means a facility subject 
20to licensure under Section 32.5 of the Emergency Medical 
21Services (EMS) Systems Act.
22 "Category of service" means a grouping by generic class of 
23various types or levels of support functions, equipment, care, 
24or treatment provided to patients or residents, including, but 
25not limited to, classes such as medical-surgical, pediatrics, 
26or cardiac catheterization. A category of service may include 
 
 
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1subcategories or levels of care that identify a particular 
2degree or type of care within the category of service. Nothing 
3in this definition shall be construed to include the practice 
4of a physician or other licensed health care professional while 
5functioning in an office providing for the care, diagnosis, or 
6treatment of patients. A category of service that is subject to 
7the Board's jurisdiction must be designated in rules adopted by 
8the Board.
9 "State Board Staff Report" means the document that sets 
10forth the review and findings of the State Board staff, as 
11prescribed by the State Board, regarding applications subject 
12to Board jurisdiction. 
13(Source: P.A. 97-38, eff. 6-28-11; 97-277, eff. 1-1-12; 97-813, 
14eff. 7-13-12; 97-980, eff. 8-17-12; 98-414, eff. 1-1-14; 
1598-629, eff. 1-1-15; 98-651, eff. 6-16-14; 98-1086, eff. 
168-26-14; revised 10-22-14.)

17 Section 10. The Hospital Licensing Act is amended by 
18changing Section 4 as follows:




19 (210 ILCS 85/4) (from Ch. 111 1/2, par. 145)



20 Sec. 4. 
No person shall establish a hospital without first 
21obtaining a
permit from the Department and no person shall 
22open, conduct, operate, or
maintain a hospital without first 
23obtaining a license from the Department.

24 Any hospital that has closed for any reason, except for 
 
 
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1license revocation by the Department for failure to comply with 
2this Act, may reopen under new ownership or management, or 
3both, within 3 years of the hospital's closing date without 
4reapplying for a license under this Act if the hospital is 
5reopening at the same location and in the same physical 
6structure. 
7 Nothing in this Act shall be construed to impair or abridge 
8the power of
municipalities to license and regulate hospitals, 
9provided that the
municipal ordinance substantially complies 
10with the minimum standards and
regulations developed by the 
11Department pursuant to the provisions of this
Act. Such 
12compliance shall be determined by the Department subject to

13review as provided in Section 13 of this Act. Section 13 of 
14this Act
shall also be applicable to the judicial review of 
15final administrative
decisions of the regulatory agency of the 
16municipality. Any municipality
having an ordinance licensing 
17and regulating hospitals which provides for
minimum standards 
18and regulations substantially in compliance with those

19developed pursuant to this Act shall make such periodic reports 
20to the
Department as the Department deems necessary. This 
21report shall include a
list of hospitals meeting standards 
22substantially equivalent to those
promulgated by the 
23Department under this Act, and upon the receipt of such
report 
24the Department may then issue a license to such hospital.

25(Source: Laws 1965, p. 2350.)



26 Section 99. Effective date. This Act takes effect upon 
 
 
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1becoming law.