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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1677 Introduced 2/20/2015, by Sen. Patricia Van Pelt SYNOPSIS AS INTRODUCED:
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20 ILCS 3960/3 | from Ch. 111 1/2, par. 1153 |
210 ILCS 85/4 | from Ch. 111 1/2, par. 145 |
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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.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | SB1677 | | LRB099 08048 RPS 28192 b |
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| 1 | | AN ACT concerning regulation.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Health Facilities Planning Act is |
| 5 | | amended by changing Section 3 as follows:
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| 6 | | (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
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| 7 | | (Section scheduled to be repealed on December 31, 2019) |
| 8 | | Sec. 3. Definitions. As used in this Act:
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| 9 | | "Health care facilities" means and includes
the following |
| 10 | | facilities, organizations, and related persons:
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| 11 | | (1) An ambulatory surgical treatment center required |
| 12 | | to be licensed
pursuant to the Ambulatory Surgical |
| 13 | | Treatment Center Act.
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| 14 | | (2) An institution, place, building, or agency |
| 15 | | required to be licensed
pursuant to the Hospital Licensing |
| 16 | | Act.
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| 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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| | SB1677 | - 2 - | LRB099 08048 RPS 28192 b |
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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.
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| 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
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| 20 | | maintained by the State or any department or agency |
| 21 | | thereof.
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| 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.
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| 25 | | (A) This Act does not apply to a dialysis facility |
| 26 | | that provides only dialysis training, support, and |
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| | SB1677 | - 3 - | LRB099 08048 RPS 28192 b |
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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.
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| 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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| 1 | | entities 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
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| 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 |
| 2 | | specifically
included in this Section, nothing in this Act |
| 3 | | shall be intended to
include facilities operated as a part of |
| 4 | | the practice of a physician or
other licensed health care |
| 5 | | professional, whether practicing in his
individual capacity or |
| 6 | | within the legal structure of any partnership,
medical or |
| 7 | | professional corporation, or unincorporated medical or
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| 8 | | professional group. Further, this Act shall not apply to |
| 9 | | physicians or
other licensed health care professional's |
| 10 | | practices where such practices
are carried out in a portion of |
| 11 | | a health care facility under contract
with such health care |
| 12 | | facility by a physician or by other licensed
health care |
| 13 | | professionals, whether practicing in his individual capacity
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| 14 | | or within the legal structure of any partnership, medical or
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| 15 | | professional corporation, or unincorporated medical or |
| 16 | | professional
groups, unless the entity constructs, modifies, |
| 17 | | or establishes a health care facility as specifically defined |
| 18 | | in this Section. This Act shall apply to construction or
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| 19 | | modification and to establishment by such health care facility |
| 20 | | of such
contracted portion which is subject to facility |
| 21 | | licensing requirements,
irrespective of the party responsible |
| 22 | | for such action or attendant
financial obligation.
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| 23 | | "Person" means any one or more natural persons, legal |
| 24 | | entities,
governmental bodies other than federal, or any |
| 25 | | combination thereof.
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| 26 | | "Consumer" means any person other than a person (a) whose |
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| | SB1677 | - 7 - | LRB099 08048 RPS 28192 b |
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| 1 | | major
occupation currently involves or whose official capacity |
| 2 | | within the last
12 months has involved the providing, |
| 3 | | administering or financing of any
type of health care facility, |
| 4 | | (b) who is engaged in health research or
the teaching of |
| 5 | | health, (c) who has a material financial interest in any
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| 6 | | activity which involves the providing, administering or |
| 7 | | financing of any
type of health care facility, or (d) who is or |
| 8 | | ever has been a member of
the immediate family of the person |
| 9 | | defined by (a), (b), or (c).
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| 10 | | "State Board" or "Board" means the Health Facilities and |
| 11 | | Services Review Board.
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| 12 | | "Construction or modification" means the establishment, |
| 13 | | erection,
building, alteration, reconstruction, modernization, |
| 14 | | improvement,
extension, discontinuation, change of ownership, |
| 15 | | of or by a health care
facility, or the purchase or acquisition |
| 16 | | by or through a health care facility
of
equipment or service |
| 17 | | for diagnostic or therapeutic purposes or for
facility |
| 18 | | administration or operation, or any capital expenditure made by
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| 19 | | or on behalf of a health care facility which
exceeds the |
| 20 | | capital expenditure minimum; however, any capital expenditure
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| 21 | | made by or on behalf of a health care facility for (i) the |
| 22 | | construction or
modification of a facility licensed under the |
| 23 | | Assisted Living and Shared
Housing Act or (ii) a conversion |
| 24 | | project undertaken in accordance with Section 30 of the Older |
| 25 | | Adult Services Act shall be excluded from any obligations under |
| 26 | | this Act.
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| | SB1677 | - 8 - | LRB099 08048 RPS 28192 b |
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| 1 | | "Establish" means the construction of a health care |
| 2 | | facility or the
replacement of an existing facility on another |
| 3 | | site or the initiation of a category of service.
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| 4 | | "Major medical equipment" means medical equipment which is |
| 5 | | used for the
provision of medical and other health services and |
| 6 | | which costs in excess
of the capital expenditure minimum, |
| 7 | | except that such term does not include
medical equipment |
| 8 | | acquired
by or on behalf of a clinical laboratory to provide |
| 9 | | clinical laboratory
services if the clinical laboratory is |
| 10 | | independent of a physician's office
and a hospital and it has |
| 11 | | been determined under Title XVIII of the Social
Security Act to |
| 12 | | meet the requirements of paragraphs (10) and (11) of Section
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| 13 | | 1861(s) of such Act. In determining whether medical equipment |
| 14 | | has a value
in excess of the capital expenditure minimum, the |
| 15 | | value of studies, surveys,
designs, plans, working drawings, |
| 16 | | specifications, and other activities
essential to the |
| 17 | | acquisition of such equipment shall be included.
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| 18 | | "Capital Expenditure" means an expenditure: (A) made by or |
| 19 | | on behalf of
a health care facility (as such a facility is |
| 20 | | defined in this Act); and
(B) which under generally accepted |
| 21 | | accounting principles is not properly
chargeable as an expense |
| 22 | | of operation and maintenance, or is made to obtain
by lease or |
| 23 | | comparable arrangement any facility or part thereof or any
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| 24 | | equipment for a facility or part; and which exceeds the capital |
| 25 | | expenditure
minimum.
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| 26 | | For the purpose of this paragraph, the cost of any studies, |
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| 1 | | surveys, designs,
plans, working drawings, specifications, and |
| 2 | | other activities essential
to the acquisition, improvement, |
| 3 | | expansion, or replacement of any plant
or equipment with |
| 4 | | respect to which an expenditure is made shall be included
in |
| 5 | | determining if such expenditure exceeds the capital |
| 6 | | expenditures minimum.
Unless otherwise interdependent, or |
| 7 | | submitted as one project by the applicant, components of |
| 8 | | construction or modification undertaken by means of a single |
| 9 | | construction contract or financed through the issuance of a |
| 10 | | single debt instrument shall not be grouped together as one |
| 11 | | project. Donations of equipment
or facilities to a health care |
| 12 | | facility which if acquired directly by such
facility would be |
| 13 | | subject to review under this Act shall be considered capital
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| 14 | | expenditures, and a transfer of equipment or facilities for |
| 15 | | less than fair
market value shall be considered a capital |
| 16 | | expenditure for purposes of this
Act if a transfer of the |
| 17 | | equipment or facilities at fair market value would
be subject |
| 18 | | to review.
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| 19 | | "Capital expenditure minimum" means $11,500,000 for |
| 20 | | projects by hospital applicants, $6,500,000 for applicants for |
| 21 | | projects related to skilled and intermediate care long-term |
| 22 | | care facilities licensed under the Nursing Home Care Act, and |
| 23 | | $3,000,000 for projects by all other applicants, which shall be |
| 24 | | annually
adjusted to reflect the increase in construction costs |
| 25 | | due to inflation, for major medical equipment and for all other
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| 26 | | capital expenditures.
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| 1 | | "Non-clinical service area" means an area (i) for the |
| 2 | | benefit of the
patients, visitors, staff, or employees of a |
| 3 | | health care facility and (ii) not
directly related to the |
| 4 | | diagnosis, treatment, or rehabilitation of persons
receiving |
| 5 | | services from the health care facility. "Non-clinical service |
| 6 | | areas"
include, but are not limited to, chapels; gift shops; |
| 7 | | news stands; computer
systems; tunnels, walkways, and |
| 8 | | elevators; telephone systems; projects to
comply with life |
| 9 | | safety codes; educational facilities; student housing;
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| 10 | | patient, employee, staff, and visitor dining areas; |
| 11 | | administration and
volunteer offices; modernization of |
| 12 | | structural components (such as roof
replacement and masonry |
| 13 | | work); boiler repair or replacement; vehicle
maintenance and |
| 14 | | storage facilities; parking facilities; mechanical systems for
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| 15 | | heating, ventilation, and air conditioning; loading docks; and |
| 16 | | repair or
replacement of carpeting, tile, wall coverings, |
| 17 | | window coverings or treatments,
or furniture. Solely for the |
| 18 | | purpose of this definition, "non-clinical service
area" does |
| 19 | | not include health and fitness centers.
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| 20 | | "Areawide" means a major area of the State delineated on a
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| 21 | | geographic, demographic, and functional basis for health |
| 22 | | planning and
for health service and having within it one or |
| 23 | | more local areas for
health planning and health service. The |
| 24 | | term "region", as contrasted
with the term "subregion", and the |
| 25 | | word "area" may be used synonymously
with the term "areawide".
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| 26 | | "Local" means a subarea of a delineated major area that on |
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| 1 | | a
geographic, demographic, and functional basis may be |
| 2 | | considered to be
part of such major area. The term "subregion" |
| 3 | | may be used synonymously
with the term "local".
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| 4 | | "Physician" means a person licensed to practice in |
| 5 | | accordance with
the Medical Practice Act of 1987, as amended.
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| 6 | | "Licensed health care professional" means a person |
| 7 | | licensed to
practice a health profession under pertinent |
| 8 | | licensing statutes of the
State of Illinois.
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| 9 | | "Director" means the Director of the Illinois Department of |
| 10 | | Public Health.
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| 11 | | "Agency" means the Illinois Department of Public Health.
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| 12 | | "Alternative health care model" means a facility or program |
| 13 | | authorized
under the Alternative Health Care Delivery Act.
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| 14 | | "Out-of-state facility" means a person that is both (i) |
| 15 | | licensed as a
hospital or as an ambulatory surgery center under |
| 16 | | the laws of another state
or that
qualifies as a hospital or an |
| 17 | | ambulatory surgery center under regulations
adopted pursuant |
| 18 | | to the Social Security Act and (ii) not licensed under the
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| 19 | | Ambulatory Surgical Treatment Center Act, the Hospital |
| 20 | | Licensing Act, or the
Nursing Home Care Act. Affiliates of |
| 21 | | out-of-state facilities shall be
considered out-of-state |
| 22 | | facilities. Affiliates of Illinois licensed health
care |
| 23 | | facilities 100% owned by an Illinois licensed health care |
| 24 | | facility, its
parent, or Illinois physicians licensed to |
| 25 | | practice medicine in all its
branches shall not be considered |
| 26 | | out-of-state facilities. Nothing in
this definition shall be
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| 1 | | construed to include an office or any part of an office of a |
| 2 | | physician licensed
to practice medicine in all its branches in |
| 3 | | Illinois that is not required to be
licensed under the |
| 4 | | Ambulatory Surgical Treatment Center Act.
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| 5 | | "Change of ownership of a health care facility" means a |
| 6 | | change in the
person
who has ownership or
control of a health |
| 7 | | care facility's physical plant and capital assets. A change
in |
| 8 | | ownership is indicated by
the following transactions: sale, |
| 9 | | transfer, acquisition, lease, change of
sponsorship, or other |
| 10 | | means of
transferring control.
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| 11 | | "Related person" means any person that: (i) is at least 50% |
| 12 | | owned, directly
or indirectly, by
either the health care |
| 13 | | facility or a person owning, directly or indirectly, at
least |
| 14 | | 50% of the health
care facility; or (ii) owns, directly or |
| 15 | | indirectly, at least 50% of the
health care facility.
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| 16 | | "Charity care" means care provided by a health care |
| 17 | | facility for which the provider does not expect to receive |
| 18 | | payment from the patient or a third-party payer. |
| 19 | | "Freestanding emergency center" means a facility subject |
| 20 | | to licensure under Section 32.5 of the Emergency Medical |
| 21 | | Services (EMS) Systems Act. |
| 22 | | "Category of service" means a grouping by generic class of |
| 23 | | various types or levels of support functions, equipment, care, |
| 24 | | or treatment provided to patients or residents, including, but |
| 25 | | not limited to, classes such as medical-surgical, pediatrics, |
| 26 | | or cardiac catheterization. A category of service may include |
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| 1 | | subcategories or levels of care that identify a particular |
| 2 | | degree or type of care within the category of service. Nothing |
| 3 | | in this definition shall be construed to include the practice |
| 4 | | of a physician or other licensed health care professional while |
| 5 | | functioning in an office providing for the care, diagnosis, or |
| 6 | | treatment of patients. A category of service that is subject to |
| 7 | | the Board's jurisdiction must be designated in rules adopted by |
| 8 | | the Board. |
| 9 | | "State Board Staff Report" means the document that sets |
| 10 | | forth the review and findings of the State Board staff, as |
| 11 | | prescribed by the State Board, regarding applications subject |
| 12 | | to Board jurisdiction. |
| 13 | | (Source: P.A. 97-38, eff. 6-28-11; 97-277, eff. 1-1-12; 97-813, |
| 14 | | eff. 7-13-12; 97-980, eff. 8-17-12; 98-414, eff. 1-1-14; |
| 15 | | 98-629, eff. 1-1-15; 98-651, eff. 6-16-14; 98-1086, eff. |
| 16 | | 8-26-14; revised 10-22-14.)
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| 17 | | Section 10. The Hospital Licensing Act is amended by |
| 18 | | changing Section 4 as follows:
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| 19 | | (210 ILCS 85/4) (from Ch. 111 1/2, par. 145)
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| 20 | | Sec. 4.
No person shall establish a hospital without first |
| 21 | | obtaining a
permit from the Department and no person shall |
| 22 | | open, conduct, operate, or
maintain a hospital without first |
| 23 | | obtaining a license from the Department.
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| 24 | | Any hospital that has closed for any reason, except for |
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| 1 | | license revocation by the Department for failure to comply with |
| 2 | | this Act, may reopen under new ownership or management, or |
| 3 | | both, within 3 years of the hospital's closing date without |
| 4 | | reapplying for a license under this Act if the hospital is |
| 5 | | reopening at the same location and in the same physical |
| 6 | | structure. |
| 7 | | Nothing in this Act shall be construed to impair or abridge |
| 8 | | the power of
municipalities to license and regulate hospitals, |
| 9 | | provided that the
municipal ordinance substantially complies |
| 10 | | with the minimum standards and
regulations developed by the |
| 11 | | Department pursuant to the provisions of this
Act. Such |
| 12 | | compliance shall be determined by the Department subject to
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| 13 | | review as provided in Section 13 of this Act. Section 13 of |
| 14 | | this Act
shall also be applicable to the judicial review of |
| 15 | | final administrative
decisions of the regulatory agency of the |
| 16 | | municipality. Any municipality
having an ordinance licensing |
| 17 | | and regulating hospitals which provides for
minimum standards |
| 18 | | and regulations substantially in compliance with those
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| 19 | | developed pursuant to this Act shall make such periodic reports |
| 20 | | to the
Department as the Department deems necessary. This |
| 21 | | report shall include a
list of hospitals meeting standards |
| 22 | | substantially equivalent to those
promulgated by the |
| 23 | | Department under this Act, and upon the receipt of such
report |
| 24 | | the Department may then issue a license to such hospital.
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| 25 | | (Source: Laws 1965, p. 2350.)
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| 26 | | Section 99. Effective date. This Act takes effect upon |