99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3510

Introduced , by Rep. Brandon W. Phelps

SYNOPSIS AS INTRODUCED:
20 ILCS 3960/12 from Ch. 111 1/2, par. 1162

Amends the Illinois Health Facilities Planning Act. Requires the Health Facilities and Services Review Board to establish a separate set of rules and guidelines for long-term care for submission to the Index Division of the Office of Secretary of State no later than April 1, 2016. Requires the Health Services Review Board Long-term Care Facility Advisory Subcommittee to, in conjunction with the Board, study new approaches to the current bed need formula and Health Service Area boundaries and submit its recommendations to the Chairman of the Board no later than October 1, 2015. Requires the Chairman of the Board to ensure that the Health Services Review Board Long-term Care Facility Advisory Subcommittee includes 2 members recommended from each of the 3 statewide long-term care provider associations. Revokes all appointments to the Subcommittee on January 1, 2016 if by that time the Subcommittee has failed to recommend a separate set of rules and guidelines governing long-term care. Sets forth membership for the new Subcommittee to be appointed by the Board. Effective immediately.
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A BILL FOR

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1 AN ACT concerning State government.
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 12 as follows:
6 (20 ILCS 3960/12) (from Ch. 111 1/2, par. 1162)
7 (Section scheduled to be repealed on December 31, 2019)
8 Sec. 12. Powers and duties of State Board. For purposes of
9this Act, the State Board shall exercise the following powers
10and duties:
11 (1) Prescribe rules, regulations, standards, criteria,
12procedures or reviews which may vary according to the purpose
13for which a particular review is being conducted or the type of
14project reviewed and which are required to carry out the
15provisions and purposes of this Act. Policies and procedures of
16the State Board shall take into consideration the priorities
17and needs of medically underserved areas and other health care
18services identified through the comprehensive health planning
19process, giving special consideration to the impact of projects
20on access to safety net services.
21 (2) Adopt procedures for public notice and hearing on all
22proposed rules, regulations, standards, criteria, and plans
23required to carry out the provisions of this Act.

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1 (3) (Blank).
2 (4) Develop criteria and standards for health care
3facilities planning, conduct statewide inventories of health
4care facilities, maintain an updated inventory on the Board's
5web site reflecting the most recent bed and service changes and
6updated need determinations when new census data become
7available or new need formulae are adopted, and develop health
8care facility plans which shall be utilized in the review of
9applications for permit under this Act. Such health facility
10plans shall be coordinated by the Board with pertinent State
11Plans. Inventories pursuant to this Section of skilled or
12intermediate care facilities licensed under the Nursing Home
13Care Act, skilled or intermediate care facilities licensed
14under the ID/DD Community Care Act, facilities licensed under
15the Specialized Mental Health Rehabilitation Act, or nursing
16homes licensed under the Hospital Licensing Act shall be
17conducted on an annual basis no later than July 1 of each year
18and shall include among the information requested a list of all
19services provided by a facility to its residents and to the
20community at large and differentiate between active and
21inactive beds.
22 In developing health care facility plans, the State Board
23shall consider, but shall not be limited to, the following:
24 (a) The size, composition and growth of the population
25 of the area to be served;
26 (b) The number of existing and planned facilities

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1 offering similar programs;
2 (c) The extent of utilization of existing facilities;
3 (d) The availability of facilities which may serve as
4 alternatives or substitutes;
5 (e) The availability of personnel necessary to the
6 operation of the facility;
7 (f) Multi-institutional planning and the establishment
8 of multi-institutional systems where feasible;
9 (g) The financial and economic feasibility of proposed
10 construction or modification; and
11 (h) In the case of health care facilities established
12 by a religious body or denomination, the needs of the
13 members of such religious body or denomination may be
14 considered to be public need.
15 The health care facility plans which are developed and
16adopted in accordance with this Section shall form the basis
17for the plan of the State to deal most effectively with
18statewide health needs in regard to health care facilities.
19 (5) Coordinate with the Center for Comprehensive Health
20Planning and other state agencies having responsibilities
21affecting health care facilities, including those of licensure
22and cost reporting. Beginning no later than January 1, 2013,
23the Department of Public Health shall produce a written annual
24report to the Governor and the General Assembly regarding the
25development of the Center for Comprehensive Health Planning.
26The Chairman of the State Board and the State Board

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1Administrator shall also receive a copy of the annual report.
2 (6) Solicit, accept, hold and administer on behalf of the
3State any grants or bequests of money, securities or property
4for use by the State Board or Center for Comprehensive Health
5Planning in the administration of this Act; and enter into
6contracts consistent with the appropriations for purposes
7enumerated in this Act.
8 (7) The State Board shall prescribe procedures for review,
9standards, and criteria which shall be utilized to make
10periodic reviews and determinations of the appropriateness of
11any existing health services being rendered by health care
12facilities subject to the Act. The State Board shall consider
13recommendations of the Board in making its determinations.
14 (8) Prescribe, in consultation with the Center for
15Comprehensive Health Planning, rules, regulations, standards,
16and criteria for the conduct of an expeditious review of
17applications for permits for projects of construction or
18modification of a health care facility, which projects are
19classified as emergency, substantive, or non-substantive in
20nature.
21 Six months after June 30, 2009 (the effective date of
22Public Act 96-31), substantive projects shall include no more
23than the following:
24 (a) Projects to construct (1) a new or replacement
25 facility located on a new site or (2) a replacement
26 facility located on the same site as the original facility

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1 and the cost of the replacement facility exceeds the
2 capital expenditure minimum, which shall be reviewed by the
3 Board within 120 days;
4 (b) Projects proposing a (1) new service within an
5 existing healthcare facility or (2) discontinuation of a
6 service within an existing healthcare facility, which
7 shall be reviewed by the Board within 60 days; or
8 (c) Projects proposing a change in the bed capacity of
9 a health care facility by an increase in the total number
10 of beds or by a redistribution of beds among various
11 categories of service or by a relocation of beds from one
12 physical facility or site to another by more than 20 beds
13 or more than 10% of total bed capacity, as defined by the
14 State Board, whichever is less, over a 2-year period.
15 The Chairman may approve applications for exemption that
16meet the criteria set forth in rules or refer them to the full
17Board. The Chairman may approve any unopposed application that
18meets all of the review criteria or refer them to the full
19Board.
20 Such rules shall not abridge the right of the Center for
21Comprehensive Health Planning to make recommendations on the
22classification and approval of projects, nor shall such rules
23prevent the conduct of a public hearing upon the timely request
24of an interested party. Such reviews shall not exceed 60 days
25from the date the application is declared to be complete.
26 (9) Prescribe rules, regulations, standards, and criteria

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1pertaining to the granting of permits for construction and
2modifications which are emergent in nature and must be
3undertaken immediately to prevent or correct structural
4deficiencies or hazardous conditions that may harm or injure
5persons using the facility, as defined in the rules and
6regulations of the State Board. This procedure is exempt from
7public hearing requirements of this Act.
8 (10) Prescribe rules, regulations, standards and criteria
9for the conduct of an expeditious review, not exceeding 60
10days, of applications for permits for projects to construct or
11modify health care facilities which are needed for the care and
12treatment of persons who have acquired immunodeficiency
13syndrome (AIDS) or related conditions.
14 (11) Issue written decisions upon request of the applicant
15or an adversely affected party to the Board. Requests for a
16written decision shall be made within 15 days after the Board
17meeting in which a final decision has been made. A "final
18decision" for purposes of this Act is the decision to approve
19or deny an application, or take other actions permitted under
20this Act, at the time and date of the meeting that such action
21is scheduled by the Board. State Board members shall provide
22their rationale when voting on an item before the State Board
23at a State Board meeting in order to comply with subsection (b)
24of Section 3-108 of the Administrative Review Law of the Code
25of Civil Procedure. The transcript of the State Board meeting
26shall be incorporated into the Board's final decision. The

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1staff of the Board shall prepare a written copy of the final
2decision and the Board shall approve a final copy for inclusion
3in the formal record. The Board shall consider, for approval,
4the written draft of the final decision no later than the next
5scheduled Board meeting. The written decision shall identify
6the applicable criteria and factors listed in this Act and the
7Board's regulations that were taken into consideration by the
8Board when coming to a final decision. If the Board denies or
9fails to approve an application for permit or exemption, the
10Board shall include in the final decision a detailed
11explanation as to why the application was denied and identify
12what specific criteria or standards the applicant did not
13fulfill.
14 (12) Require at least one of its members to participate in
15any public hearing, after the appointment of a majority of the
16members to the Board.
17 (13) Provide a mechanism for the public to comment on, and
18request changes to, draft rules and standards.
19 (14) Implement public information campaigns to regularly
20inform the general public about the opportunity for public
21hearings and public hearing procedures.
22 (15) Establish a separate set of rules and guidelines for
23long-term care that recognizes that nursing homes are a
24different business line and service model from other regulated
25facilities for submission to the Index Division of the Office
26of the Secretary of State no later than April 1, 2016. An open

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1and transparent process shall be developed that considers the
2following: how skilled nursing fits in the continuum of care
3with other care providers, modernization of nursing homes,
4establishment of more private rooms, development of
5alternative services, and current trends in long-term care
6services. The Chairman of the Board shall appoint a permanent
7Health Services Review Board Long-term Care Facility Advisory
8Subcommittee that shall develop and recommend to the Board the
9rules to be established by the Board under this paragraph (15).
10The Subcommittee shall also provide continuous review and
11commentary on policies and procedures relative to long-term
12care and the review of related projects. In consultation with
13other experts from the health field of long-term care, the
14Board and the Subcommittee shall study new approaches to the
15current bed need formula and Health Service Area boundaries to
16encourage flexibility and innovation in design models
17reflective of the changing long-term care marketplace and
18consumer preferences and submit its recommendations to the
19Chairman of the Board no later than October 1, 2015. The
20Subcommittee shall evaluate, and make recommendations to the
21State Board regarding, the buying, selling, and exchange of
22beds between long-term care facilities within a specified
23geographic area or drive time. The Board shall file the
24proposed related administrative rules for the separate rules
25and guidelines for long-term care required by this paragraph
26(15) by no later than September 30, 2011. The Subcommittee

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1shall be provided a reasonable and timely opportunity to review
2and comment on any review, revision, or updating of the
3criteria, standards, procedures, and rules used to evaluate
4project applications as provided under Section 12.3 of this
5Act.
6 By July 1, 2015, the Chairman of the Board shall ensure
7that the Subcommittee includes 2 members recommended from each
8of the 3 statewide long-term care provider associations. If, by
9January 1, 2016, the Subcommittee has failed to recommend a
10separate set of rules and guidelines governing long-term care,
11then the Subcommittee shall be disbanded. If the Subcommittee
12is disbanded, then the Chairman of the Board shall, by February
131, 2016, appoint a new Subcommittee as follows:
14 (A) Two appointees recommended by each of the 3
15 statewide long-term care provider associations, of
16 which one shall be a provider and one an employee of
17 the association;
18 (B) Three attorneys specializing in health law
19 recommended by the 3 long-term care provider
20 associations; and
21 (C) Two citizen members with knowledge of Illinois
22 long-term care facilities.
23 The Chairman of the Board shall select a Subcommittee
24Chair, who shall serve for a period of one year, from those
25serving on the Subcommittee at the recommendation of the 3
26long-term care provider associations. Each year thereafter,

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1the Chairman of the Board shall name a successor Subcommittee
2Chair from the recommendations of a different provider
3association. One representative from the Department of Public
4Health, the Department of Healthcare and Family Services, and
5the Department of Human Services shall each serve as a
6non-voting member of the Subcommittee.
7 (16) Prescribe and provide forms pertaining to the State
8Board Staff Report. A State Board Staff Report shall pertain to
9applications that include, but are not limited to, applications
10for permit or exemption, applications for permit renewal,
11applications for extension of the obligation period,
12applications requesting a declaratory ruling, or applications
13under the Health Care Worker Self-Referral Self Referral Act.
14State Board Staff Reports shall compare applications to the
15relevant review criteria under the Board's rules.
16 (17) (16) Establish a separate set of rules and guidelines
17for facilities licensed under the Specialized Mental Health
18Rehabilitation Act of 2013. An application for the
19re-establishment of a facility in connection with the
20relocation of the facility shall not be granted unless the
21applicant has a contractual relationship with at least one
22hospital to provide emergency and inpatient mental health
23services required by facility consumers, and at least one
24community mental health agency to provide oversight and
25assistance to facility consumers while living in the facility,
26and appropriate services, including case management, to assist

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1them to prepare for discharge and reside stably in the
2community thereafter. No new facilities licensed under the
3Specialized Mental Health Rehabilitation Act of 2013 shall be
4established after June 16, 2014 (the effective date of Public
5Act 98-651) this amendatory Act of the 98th General Assembly
6except in connection with the relocation of an existing
7facility to a new location. An application for a new location
8shall not be approved unless there are adequate community
9services accessible to the consumers within a reasonable
10distance, or by use of public transportation, so as to
11facilitate the goal of achieving maximum individual self-care
12and independence. At no time shall the total number of
13authorized beds under this Act in facilities licensed under the
14Specialized Mental Health Rehabilitation Act of 2013 exceed the
15number of authorized beds on June 16, 2014 (the effective date
16of Public Act 98-651) this amendatory Act of the 98th General
17Assembly.
18(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
19eff. 7-13-12; 97-1045, eff. 8-21-13; 97-1115, eff. 8-27-12;
2098-414, eff. 1-1-14; 98-463, eff. 8-16-13; 98-651, eff.
216-16-14; 98-1086, eff. 8-26-14; revised 10-1-14.)
22 Section 99. Effective date. This Act takes effect upon
23becoming law.