Bill Amendment: IL HB5589 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: HOSPITAL FINANCIAL RESOLUTION

Status: 2026-05-15 - Added Co-Sponsor Rep. Laura Faver Dias [HB5589 Detail]

Download: Illinois-2025-HB5589-House_Amendment_001.html

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Rep. Robyn Gabel

Filed: 3/2/2026

 

 

 

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AMENDMENT TO HOUSE BILL 5589
AMENDMENT NO. ______. Amend House Bill 5589 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.71 as follows:
(5 ILCS 100/5-45.71 new)
Sec. 5-45.71. Emergency rulemaking; financial reporting of
nonexempt hospitals. To provide for the expeditious and timely
implementation of Section 5A-3.1 of the Illinois Public Aid
Code, emergency rules implementing Section 5A-3.1 of the
Illinois Public Aid Code may be adopted in accordance with
Section 5-45 by the Department of Healthcare and Family
Services. The adoption of emergency rules authorized by
Section 5-45 and this Section is deemed necessary for the
public interest, safety, and welfare.
This Section is repealed one year after the effective date

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of this amendatory Act of the 104th General Assembly.
Section 10. The Hospital Licensing Act is amended by
changing Section 6.14a and by adding Section 4.8 as follows:
(210 ILCS 85/4.8 new)
Sec. 4.8. Additional licensing requirements.
(a) Financial resolution plan. Any hospital licensed under
the provisions of this Act shall submit to the Department a
financial resolution plan for the rapid and orderly resolution
of finances and operations in the event of material financial
distress. Such plans shall include, but not be limited to, the
following:
(1) Full descriptions or organizational charts of the
ownership structure, assets, liabilities, and contractual
obligations of the hospital.
(2) Plans for the safe and orderly transfer and
continuity of care for patients if there is contemplated
or planned closure of at least one category of service, or
a temporary suspension of such service.
(3) Plans for filing or exploring bankruptcy and any
dissolution or closure of any category of service or
services. Such plans include, but are not limited to,
audit reports, operational contingency planning, and other
preparations or research.
(4) Plans for the orderly preservation and transfer of

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medical records in accordance with the Medical Patient
Rights Act, the Health Insurance Portability and
Accountability Act of 1966, and other applicable medical
privacy laws.
(5) Plans to transfer or outplace staff and employees
to other hospitals, health care facilities, or entities.
Such plans may also include proposed layoffs and
downsizing and should include provisions for the placement
of clinical trainees to complete their training.
(6) Identification of potential service gaps created
due to material financial distress or failure, temporary
suspension, discontinuation, or closure.
(7) Any other information or data that the Department
requests pursuant to its discretion when reviewing the
financial resolution plan.
(b) Financial resolution plans for hospitals with multiple
locations operating under a single license. Any hospital
licensed by the Department under Section 4.5 of this Act shall
submit a financial resolution plan as outlined in subsection
(a) for each location, campus, or facility administered under
the license.
(c) Annual filing. Financial resolution plans shall be
filed with the Department no later than 6 months after the
effective date of this amendatory Act of the 104th General
Assembly. Financial resolution plans, or annual affirmations
of previously filed financial resolution plans, as outlined in

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this Section shall be submitted on an annual basis as
determined by the Department through administrative rule.
(d) Penalties for non-compliance. The Department may
impose fines of not more than $500 per week for failure to
comply with the provisions of this Section.
(210 ILCS 85/6.14a)
Sec. 6.14a. Public disclosure of information. The
following information is subject to disclosure to the public
from the Department:
(1) Information submitted under Section 5 of this Act;
(2) Final records of license and certification
inspections, surveys, financial resolution plans, and
evaluations of hospitals; and
(3) Investigated complaints filed against a hospital
and complaint investigation reports, except that a
complaint or complaint investigation report shall not be
disclosed to a person other than the complainant or
complainant's representative before it is disclosed to a
hospital, and except that a complainant or patient's name
shall not be disclosed.
The Department shall disclose information under this
Section in accordance with provisions for inspection and
copying of public records required by the Freedom of
Information Act.
However, the disclosure of information described in

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subsection (1) shall not be restricted by any provision of the
Freedom of Information Act.
Notwithstanding any other provision of law, under no
circumstances shall the Department disclose information
obtained from a hospital that is confidential under Part 21 of
Article VIII of the Code of Civil Procedure.
Any records or reports of inspections, surveys, or
evaluations of hospitals may be disclosed only after the
acceptance of a plan of correction by the Health Care
Financing Administration of the U.S. Department of Health and
Human Services or the Department, as appropriate, or at the
conclusion of any administrative review of the Department's
decision, or at the conclusion of any judicial review of such
administrative decision. Whenever any record or report is
subject to disclosure under this Section, the Department shall
permit the hospital to provide a written statement pertaining
to such report which shall be included as part of the
information to be disclosed. The Department shall not divulge
or disclose any record or report in a manner that identifies or
would permit the identification of any natural person.
(Source: P.A. 98-463, eff. 8-16-13.)
Section 15. The Illinois Public Aid Code is amended by
adding Section 5A-3.1 as follows:
(305 ILCS 5/5A-3.1 new)

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Sec. 5A-3.1. Financial reporting of non-exempt hospitals.
(a) The following summary financial and utilization data
shall be reported to the Department of Healthcare and Family
Services by a hospital subject to the assessment imposed under
this Article within 45 days of the end of a calendar quarter.
Adjusted reports reflecting changes as a result of audited
financial statements may be filed within 4 months of the close
of the hospital's fiscal year. The Department of Healthcare
and Family Services shall provide a reporting template to all
hospitals that are required to submit such a report. The
quarterly summary financial and utilization data shall include
all of the following:
(1) The most recent audited financial statements.
(2) The most recent month end balance sheet detailing
the assets, liabilities, and net worth at the end of the
quarter, as specified by the Department of Healthcare and
Family Services.
(3) The most recent month income statement summarizing
the revenues, expenses, and net income.
(4) Utilization metrics including:
(A) Number of licensed beds.
(B) Average number of available beds.
(C) Average number of staffed beds.
(D) Number of discharges.
(E) Number of inpatient days.
(F) Number of outpatient visits.

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(G) Total number of inpatient days, outpatient
visits, and discharges by payer, including, but not
limited to, Medicare, Medicaid fee-for-service,
Medicaid managed care, commercial coverage, and other
payers.
(5) Summary financial metrics as reflected in the most
recent month's financial statements, including:
(A) Total operating expenses.
(B) Operating margin.
(C) Earnings before interest, taxes, and
amortization (EBITA) margin.
(D) Days cash on hand.
(E) Unrestricted cash and investments.
(F) Days in accounts receivable.
(G) Net capital expenditure.
(6) Total inpatient gross revenues by payor,
including, but not limited to, Medicare, Medicaid
fee-for-service, Medicaid managed care, commercial
coverage, and other payers.
(7) Total outpatient gross revenues by payer,
including, but not limited to, Medicare, Medicaid
fee-for-service, Medicaid managed care, commercial
coverage, and other payers.
(8) Total net patient revenues by payer, including,
but not limited to, Medicare, Medicaid fee-for-service,
Medicaid managed care, commercial coverage, and other

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payers.
(9) Other operating revenue.
(10) Uncompensated care as percentage of total
revenue.
(b) The Department of Healthcare and Family Services, in
coordination with the Department of Public Health, shall
administer the collection of required reports. The Department
of Healthcare and Family Services may adopt any administrative
rules, including emergency rules, necessary to implement this
Section, including requesting additional information or
removing information from the reporting requirements.
(c) If a hospital has not filed the required information
within 45 days after the close of the quarterly reporting
period, the Department of Healthcare and Family Services shall
suspend payments authorized under subsection (r) of Section
12.7 until the Department receives the required information.".