Bill Text: IL HB5069 | 2017-2018 | 100th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Repeals the End Stage Renal Disease Facility Act. Amends the Illinois Health Facilities Planning Act, State Finance Act, and Alzheimer's Disease and Related Dementias Services Act to make corresponding changes.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2018-08-19 - Public Act . . . . . . . . . 100-0957 [HB5069 Detail]

Download: Illinois-2017-HB5069-Enrolled.html



HB5069 EnrolledLRB100 15828 MJP 30937 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 Sections 3 and 13 as follows:
6 (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
7 (Text of Section before amendment by P.A. 100-518)
8 (Section scheduled to be repealed on December 31, 2019)
9 Sec. 3. Definitions. As used in this Act:
10 "Health care facilities" means and includes the following
11facilities, organizations, and related persons:
12 (1) An ambulatory surgical treatment center required
13 to be licensed pursuant to the Ambulatory Surgical
14 Treatment Center Act.
15 (2) An institution, place, building, or agency
16 required to be licensed pursuant to the Hospital Licensing
17 Act.
18 (3) Skilled and intermediate long term care facilities
19 licensed under the Nursing Home Care Act.
20 (A) If a demonstration project under the Nursing
21 Home Care Act applies for a certificate of need to
22 convert to a nursing facility, it shall meet the
23 licensure and certificate of need requirements in

HB5069 Enrolled- 2 -LRB100 15828 MJP 30937 b
1 effect as of the date of application.
2 (B) Except as provided in item (A) of this
3 subsection, this Act does not apply to facilities
4 granted waivers under Section 3-102.2 of the Nursing
5 Home Care Act.
6 (3.5) Skilled and intermediate care facilities
7 licensed under the ID/DD Community Care Act or the MC/DD
8 Act. No permit or exemption is required for a facility
9 licensed under the ID/DD Community Care Act or the MC/DD
10 Act prior to the reduction of the number of beds at a
11 facility. If there is a total reduction of beds at a
12 facility licensed under the ID/DD Community Care Act or the
13 MC/DD Act, this is a discontinuation or closure of the
14 facility. If a facility licensed under the ID/DD Community
15 Care Act or the MC/DD Act reduces the number of beds or
16 discontinues the facility, that facility must notify the
17 Board as provided in Section 14.1 of this Act.
18 (3.7) Facilities licensed under the Specialized Mental
19 Health Rehabilitation Act of 2013.
20 (4) Hospitals, nursing homes, ambulatory surgical
21 treatment centers, or kidney disease treatment centers
22 maintained by the State or any department or agency
23 thereof.
24 (5) Kidney disease treatment centers, including a
25 free-standing hemodialysis unit required to meet the
26 requirements of 42 CFR 494 in order to be certified for

HB5069 Enrolled- 3 -LRB100 15828 MJP 30937 b
1 participation in Medicare and Medicaid under Titles XVIII
2 and XIX of the federal Social Security Act be licensed
3 under the End Stage Renal Disease Facility Act.
4 (A) This Act does not apply to a dialysis facility
5 that provides only dialysis training, support, and
6 related services to individuals with end stage renal
7 disease who have elected to receive home dialysis.
8 (B) This Act does not apply to a dialysis unit
9 located in a licensed nursing home that offers or
10 provides dialysis-related services to residents with
11 end stage renal disease who have elected to receive
12 home dialysis within the nursing home.
13 (C) The Board, however, may require dialysis
14 facilities and licensed nursing homes under items (A)
15 and (B) of this subsection to report statistical
16 information on a quarterly basis to the Board to be
17 used by the Board to conduct analyses on the need for
18 proposed kidney disease treatment centers.
19 (6) An institution, place, building, or room used for
20 the performance of outpatient surgical procedures that is
21 leased, owned, or operated by or on behalf of an
22 out-of-state facility.
23 (7) An institution, place, building, or room used for
24 provision of a health care category of service, including,
25 but not limited to, cardiac catheterization and open heart
26 surgery.

HB5069 Enrolled- 4 -LRB100 15828 MJP 30937 b
1 (8) An institution, place, building, or room housing
2 major medical equipment used in the direct clinical
3 diagnosis or treatment of patients, and whose project cost
4 is in excess of the capital expenditure minimum.
5 "Health care facilities" does not include the following
6entities or facility transactions:
7 (1) Federally-owned facilities.
8 (2) Facilities used solely for healing by prayer or
9 spiritual means.
10 (3) An existing facility located on any campus facility
11 as defined in Section 5-5.8b of the Illinois Public Aid
12 Code, provided that the campus facility encompasses 30 or
13 more contiguous acres and that the new or renovated
14 facility is intended for use by a licensed residential
15 facility.
16 (4) Facilities licensed under the Supportive
17 Residences Licensing Act or the Assisted Living and Shared
18 Housing Act.
19 (5) Facilities designated as supportive living
20 facilities that are in good standing with the program
21 established under Section 5-5.01a of the Illinois Public
22 Aid Code.
23 (6) Facilities established and operating under the
24 Alternative Health Care Delivery Act as a children's
25 community-based health care center alternative health care
26 model demonstration program or as an Alzheimer's Disease

HB5069 Enrolled- 5 -LRB100 15828 MJP 30937 b
1 Management Center alternative health care model
2 demonstration program.
3 (7) The closure of an entity or a portion of an entity
4 licensed under the Nursing Home Care Act, the Specialized
5 Mental Health Rehabilitation Act of 2013, the ID/DD
6 Community Care Act, or the MC/DD Act, with the exception of
7 facilities operated by a county or Illinois Veterans Homes,
8 that elect to convert, in whole or in part, to an assisted
9 living or shared housing establishment licensed under the
10 Assisted Living and Shared Housing Act and with the
11 exception of a facility licensed under the Specialized
12 Mental Health Rehabilitation Act of 2013 in connection with
13 a proposal to close a facility and re-establish the
14 facility in another location.
15 (8) Any change of ownership of a health care facility
16 that is licensed under the Nursing Home Care Act, the
17 Specialized Mental Health Rehabilitation Act of 2013, the
18 ID/DD Community Care Act, or the MC/DD Act, with the
19 exception of facilities operated by a county or Illinois
20 Veterans Homes. Changes of ownership of facilities
21 licensed under the Nursing Home Care Act must meet the
22 requirements set forth in Sections 3-101 through 3-119 of
23 the Nursing Home Care Act.
24 With the exception of those health care facilities
25specifically included in this Section, nothing in this Act
26shall be intended to include facilities operated as a part of

HB5069 Enrolled- 6 -LRB100 15828 MJP 30937 b
1the practice of a physician or other licensed health care
2professional, whether practicing in his individual capacity or
3within the legal structure of any partnership, medical or
4professional corporation, or unincorporated medical or
5professional group. Further, this Act shall not apply to
6physicians or other licensed health care professional's
7practices where such practices are carried out in a portion of
8a health care facility under contract with such health care
9facility by a physician or by other licensed health care
10professionals, whether practicing in his individual capacity
11or within the legal structure of any partnership, medical or
12professional corporation, or unincorporated medical or
13professional groups, unless the entity constructs, modifies,
14or establishes a health care facility as specifically defined
15in this Section. This Act shall apply to construction or
16modification and to establishment by such health care facility
17of such contracted portion which is subject to facility
18licensing requirements, irrespective of the party responsible
19for such action or attendant financial obligation.
20 "Person" means any one or more natural persons, legal
21entities, governmental bodies other than federal, or any
22combination thereof.
23 "Consumer" means any person other than a person (a) whose
24major occupation currently involves or whose official capacity
25within the last 12 months has involved the providing,
26administering or financing of any type of health care facility,

HB5069 Enrolled- 7 -LRB100 15828 MJP 30937 b
1(b) who is engaged in health research or the teaching of
2health, (c) who has a material financial interest in any
3activity which involves the providing, administering or
4financing of any type of health care facility, or (d) who is or
5ever has been a member of the immediate family of the person
6defined by (a), (b), or (c).
7 "State Board" or "Board" means the Health Facilities and
8Services Review Board.
9 "Construction or modification" means the establishment,
10erection, building, alteration, reconstruction, modernization,
11improvement, extension, discontinuation, change of ownership,
12of or by a health care facility, or the purchase or acquisition
13by or through a health care facility of equipment or service
14for diagnostic or therapeutic purposes or for facility
15administration or operation, or any capital expenditure made by
16or on behalf of a health care facility which exceeds the
17capital expenditure minimum; however, any capital expenditure
18made by or on behalf of a health care facility for (i) the
19construction or modification of a facility licensed under the
20Assisted Living and Shared Housing Act or (ii) a conversion
21project undertaken in accordance with Section 30 of the Older
22Adult Services Act shall be excluded from any obligations under
23this Act.
24 "Establish" means the construction of a health care
25facility or the replacement of an existing facility on another
26site or the initiation of a category of service.

HB5069 Enrolled- 8 -LRB100 15828 MJP 30937 b
1 "Major medical equipment" means medical equipment which is
2used for the provision of medical and other health services and
3which costs in excess of the capital expenditure minimum,
4except that such term does not include medical equipment
5acquired by or on behalf of a clinical laboratory to provide
6clinical laboratory services if the clinical laboratory is
7independent of a physician's office and a hospital and it has
8been determined under Title XVIII of the Social Security Act to
9meet the requirements of paragraphs (10) and (11) of Section
101861(s) of such Act. In determining whether medical equipment
11has a value in excess of the capital expenditure minimum, the
12value of studies, surveys, designs, plans, working drawings,
13specifications, and other activities essential to the
14acquisition of such equipment shall be included.
15 "Capital Expenditure" means an expenditure: (A) made by or
16on behalf of a health care facility (as such a facility is
17defined in this Act); and (B) which under generally accepted
18accounting principles is not properly chargeable as an expense
19of operation and maintenance, or is made to obtain by lease or
20comparable arrangement any facility or part thereof or any
21equipment for a facility or part; and which exceeds the capital
22expenditure minimum.
23 For the purpose of this paragraph, the cost of any studies,
24surveys, designs, plans, working drawings, specifications, and
25other activities essential to the acquisition, improvement,
26expansion, or replacement of any plant or equipment with

HB5069 Enrolled- 9 -LRB100 15828 MJP 30937 b
1respect to which an expenditure is made shall be included in
2determining if such expenditure exceeds the capital
3expenditures minimum. Unless otherwise interdependent, or
4submitted as one project by the applicant, components of
5construction or modification undertaken by means of a single
6construction contract or financed through the issuance of a
7single debt instrument shall not be grouped together as one
8project. Donations of equipment or facilities to a health care
9facility which if acquired directly by such facility would be
10subject to review under this Act shall be considered capital
11expenditures, and a transfer of equipment or facilities for
12less than fair market value shall be considered a capital
13expenditure for purposes of this Act if a transfer of the
14equipment or facilities at fair market value would be subject
15to review.
16 "Capital expenditure minimum" means $11,500,000 for
17projects by hospital applicants, $6,500,000 for applicants for
18projects related to skilled and intermediate care long-term
19care facilities licensed under the Nursing Home Care Act, and
20$3,000,000 for projects by all other applicants, which shall be
21annually adjusted to reflect the increase in construction costs
22due to inflation, for major medical equipment and for all other
23capital expenditures.
24 "Non-clinical service area" means an area (i) for the
25benefit of the patients, visitors, staff, or employees of a
26health care facility and (ii) not directly related to the

HB5069 Enrolled- 10 -LRB100 15828 MJP 30937 b
1diagnosis, treatment, or rehabilitation of persons receiving
2services from the health care facility. "Non-clinical service
3areas" include, but are not limited to, chapels; gift shops;
4news stands; computer systems; tunnels, walkways, and
5elevators; telephone systems; projects to comply with life
6safety codes; educational facilities; student housing;
7patient, employee, staff, and visitor dining areas;
8administration and volunteer offices; modernization of
9structural components (such as roof replacement and masonry
10work); boiler repair or replacement; vehicle maintenance and
11storage facilities; parking facilities; mechanical systems for
12heating, ventilation, and air conditioning; loading docks; and
13repair or replacement of carpeting, tile, wall coverings,
14window coverings or treatments, or furniture. Solely for the
15purpose of this definition, "non-clinical service area" does
16not include health and fitness centers.
17 "Areawide" means a major area of the State delineated on a
18geographic, demographic, and functional basis for health
19planning and for health service and having within it one or
20more local areas for health planning and health service. The
21term "region", as contrasted with the term "subregion", and the
22word "area" may be used synonymously with the term "areawide".
23 "Local" means a subarea of a delineated major area that on
24a geographic, demographic, and functional basis may be
25considered to be part of such major area. The term "subregion"
26may be used synonymously with the term "local".

HB5069 Enrolled- 11 -LRB100 15828 MJP 30937 b
1 "Physician" means a person licensed to practice in
2accordance with the Medical Practice Act of 1987, as amended.
3 "Licensed health care professional" means a person
4licensed to practice a health profession under pertinent
5licensing statutes of the State of Illinois.
6 "Director" means the Director of the Illinois Department of
7Public Health.
8 "Agency" or "Department" means the Illinois Department of
9Public Health.
10 "Alternative health care model" means a facility or program
11authorized under the Alternative Health Care Delivery Act.
12 "Out-of-state facility" means a person that is both (i)
13licensed as a hospital or as an ambulatory surgery center under
14the laws of another state or that qualifies as a hospital or an
15ambulatory surgery center under regulations adopted pursuant
16to the Social Security Act and (ii) not licensed under the
17Ambulatory Surgical Treatment Center Act, the Hospital
18Licensing Act, or the Nursing Home Care Act. Affiliates of
19out-of-state facilities shall be considered out-of-state
20facilities. Affiliates of Illinois licensed health care
21facilities 100% owned by an Illinois licensed health care
22facility, its parent, or Illinois physicians licensed to
23practice medicine in all its branches shall not be considered
24out-of-state facilities. Nothing in this definition shall be
25construed to include an office or any part of an office of a
26physician licensed to practice medicine in all its branches in

HB5069 Enrolled- 12 -LRB100 15828 MJP 30937 b
1Illinois that is not required to be licensed under the
2Ambulatory Surgical Treatment Center Act.
3 "Change of ownership of a health care facility" means a
4change in the person who has ownership or control of a health
5care facility's physical plant and capital assets. A change in
6ownership is indicated by the following transactions: sale,
7transfer, acquisition, lease, change of sponsorship, or other
8means of transferring control.
9 "Related person" means any person that: (i) is at least 50%
10owned, directly or indirectly, by either the health care
11facility or a person owning, directly or indirectly, at least
1250% of the health care facility; or (ii) owns, directly or
13indirectly, at least 50% of the health care facility.
14 "Charity care" means care provided by a health care
15facility for which the provider does not expect to receive
16payment from the patient or a third-party payer.
17 "Freestanding emergency center" means a facility subject
18to licensure under Section 32.5 of the Emergency Medical
19Services (EMS) Systems Act.
20 "Category of service" means a grouping by generic class of
21various types or levels of support functions, equipment, care,
22or treatment provided to patients or residents, including, but
23not limited to, classes such as medical-surgical, pediatrics,
24or cardiac catheterization. A category of service may include
25subcategories or levels of care that identify a particular
26degree or type of care within the category of service. Nothing

HB5069 Enrolled- 13 -LRB100 15828 MJP 30937 b
1in this definition shall be construed to include the practice
2of a physician or other licensed health care professional while
3functioning in an office providing for the care, diagnosis, or
4treatment of patients. A category of service that is subject to
5the Board's jurisdiction must be designated in rules adopted by
6the Board.
7 "State Board Staff Report" means the document that sets
8forth the review and findings of the State Board staff, as
9prescribed by the State Board, regarding applications subject
10to Board jurisdiction.
11(Source: P.A. 98-414, eff. 1-1-14; 98-629, eff. 1-1-15; 98-651,
12eff. 6-16-14; 98-1086, eff. 8-26-14; 99-78, eff. 7-20-15;
1399-180, eff. 7-29-15; 99-527, eff. 1-1-17.)
14 (Text of Section after amendment by P.A. 100-518)
15 (Section scheduled to be repealed on December 31, 2019)
16 Sec. 3. Definitions. As used in this Act:
17 "Health care facilities" means and includes the following
18facilities, organizations, and related persons:
19 (1) An ambulatory surgical treatment center required
20 to be licensed pursuant to the Ambulatory Surgical
21 Treatment Center Act.
22 (2) An institution, place, building, or agency
23 required to be licensed pursuant to the Hospital Licensing
24 Act.
25 (3) Skilled and intermediate long term care facilities

HB5069 Enrolled- 14 -LRB100 15828 MJP 30937 b
1 licensed under the Nursing Home Care Act.
2 (A) If a demonstration project under the Nursing
3 Home Care Act applies for a certificate of need to
4 convert to a nursing facility, it shall meet the
5 licensure and certificate of need requirements in
6 effect as of the date of application.
7 (B) Except as provided in item (A) of this
8 subsection, this Act does not apply to facilities
9 granted waivers under Section 3-102.2 of the Nursing
10 Home Care Act.
11 (3.5) Skilled and intermediate care facilities
12 licensed under the ID/DD Community Care Act or the MC/DD
13 Act. No permit or exemption is required for a facility
14 licensed under the ID/DD Community Care Act or the MC/DD
15 Act prior to the reduction of the number of beds at a
16 facility. If there is a total reduction of beds at a
17 facility licensed under the ID/DD Community Care Act or the
18 MC/DD Act, this is a discontinuation or closure of the
19 facility. If a facility licensed under the ID/DD Community
20 Care Act or the MC/DD Act reduces the number of beds or
21 discontinues the facility, that facility must notify the
22 Board as provided in Section 14.1 of this Act.
23 (3.7) Facilities licensed under the Specialized Mental
24 Health Rehabilitation Act of 2013.
25 (4) Hospitals, nursing homes, ambulatory surgical
26 treatment centers, or kidney disease treatment centers

HB5069 Enrolled- 15 -LRB100 15828 MJP 30937 b
1 maintained by the State or any department or agency
2 thereof.
3 (5) Kidney disease treatment centers, including a
4 free-standing hemodialysis unit required to meet the
5 requirements of 42 CFR 494 in order to be certified for
6 participation in Medicare and Medicaid under Titles XVIII
7 and XIX of the federal Social Security Act be licensed
8 under the End Stage Renal Disease Facility Act.
9 (A) This Act does not apply to a dialysis facility
10 that provides only dialysis training, support, and
11 related services to individuals with end stage renal
12 disease who have elected to receive home dialysis.
13 (B) This Act does not apply to a dialysis unit
14 located in a licensed nursing home that offers or
15 provides dialysis-related services to residents with
16 end stage renal disease who have elected to receive
17 home dialysis within the nursing home.
18 (C) The Board, however, may require dialysis
19 facilities and licensed nursing homes under items (A)
20 and (B) of this subsection to report statistical
21 information on a quarterly basis to the Board to be
22 used by the Board to conduct analyses on the need for
23 proposed kidney disease treatment centers.
24 (6) An institution, place, building, or room used for
25 the performance of outpatient surgical procedures that is
26 leased, owned, or operated by or on behalf of an

HB5069 Enrolled- 16 -LRB100 15828 MJP 30937 b
1 out-of-state facility.
2 (7) An institution, place, building, or room used for
3 provision of a health care category of service, including,
4 but not limited to, cardiac catheterization and open heart
5 surgery.
6 (8) An institution, place, building, or room housing
7 major medical equipment used in the direct clinical
8 diagnosis or treatment of patients, and whose project cost
9 is in excess of the capital expenditure minimum.
10 "Health care facilities" does not include the following
11entities or facility transactions:
12 (1) Federally-owned facilities.
13 (2) Facilities used solely for healing by prayer or
14 spiritual means.
15 (3) An existing facility located on any campus facility
16 as defined in Section 5-5.8b of the Illinois Public Aid
17 Code, provided that the campus facility encompasses 30 or
18 more contiguous acres and that the new or renovated
19 facility is intended for use by a licensed residential
20 facility.
21 (4) Facilities licensed under the Supportive
22 Residences Licensing Act or the Assisted Living and Shared
23 Housing Act.
24 (5) Facilities designated as supportive living
25 facilities that are in good standing with the program
26 established under Section 5-5.01a of the Illinois Public

HB5069 Enrolled- 17 -LRB100 15828 MJP 30937 b
1 Aid Code.
2 (6) Facilities established and operating under the
3 Alternative Health Care Delivery Act as a children's
4 community-based health care center alternative health care
5 model demonstration program or as an Alzheimer's Disease
6 Management Center alternative health care model
7 demonstration program.
8 (7) The closure of an entity or a portion of an entity
9 licensed under the Nursing Home Care Act, the Specialized
10 Mental Health Rehabilitation Act of 2013, the ID/DD
11 Community Care Act, or the MC/DD Act, with the exception of
12 facilities operated by a county or Illinois Veterans Homes,
13 that elect to convert, in whole or in part, to an assisted
14 living or shared housing establishment licensed under the
15 Assisted Living and Shared Housing Act and with the
16 exception of a facility licensed under the Specialized
17 Mental Health Rehabilitation Act of 2013 in connection with
18 a proposal to close a facility and re-establish the
19 facility in another location.
20 (8) Any change of ownership of a health care facility
21 that is licensed under the Nursing Home Care Act, the
22 Specialized Mental Health Rehabilitation Act of 2013, the
23 ID/DD Community Care Act, or the MC/DD Act, with the
24 exception of facilities operated by a county or Illinois
25 Veterans Homes. Changes of ownership of facilities
26 licensed under the Nursing Home Care Act must meet the

HB5069 Enrolled- 18 -LRB100 15828 MJP 30937 b
1 requirements set forth in Sections 3-101 through 3-119 of
2 the Nursing Home Care Act.
3 With the exception of those health care facilities
4specifically included in this Section, nothing in this Act
5shall be intended to include facilities operated as a part of
6the practice of a physician or other licensed health care
7professional, whether practicing in his individual capacity or
8within the legal structure of any partnership, medical or
9professional corporation, or unincorporated medical or
10professional group. Further, this Act shall not apply to
11physicians or other licensed health care professional's
12practices where such practices are carried out in a portion of
13a health care facility under contract with such health care
14facility by a physician or by other licensed health care
15professionals, whether practicing in his individual capacity
16or within the legal structure of any partnership, medical or
17professional corporation, or unincorporated medical or
18professional groups, unless the entity constructs, modifies,
19or establishes a health care facility as specifically defined
20in this Section. This Act shall apply to construction or
21modification and to establishment by such health care facility
22of such contracted portion which is subject to facility
23licensing requirements, irrespective of the party responsible
24for such action or attendant financial obligation.
25 "Person" means any one or more natural persons, legal
26entities, governmental bodies other than federal, or any

HB5069 Enrolled- 19 -LRB100 15828 MJP 30937 b
1combination thereof.
2 "Consumer" means any person other than a person (a) whose
3major occupation currently involves or whose official capacity
4within the last 12 months has involved the providing,
5administering or financing of any type of health care facility,
6(b) who is engaged in health research or the teaching of
7health, (c) who has a material financial interest in any
8activity which involves the providing, administering or
9financing of any type of health care facility, or (d) who is or
10ever has been a member of the immediate family of the person
11defined by (a), (b), or (c).
12 "State Board" or "Board" means the Health Facilities and
13Services Review Board.
14 "Construction or modification" means the establishment,
15erection, building, alteration, reconstruction, modernization,
16improvement, extension, discontinuation, change of ownership,
17of or by a health care facility, or the purchase or acquisition
18by or through a health care facility of equipment or service
19for diagnostic or therapeutic purposes or for facility
20administration or operation, or any capital expenditure made by
21or on behalf of a health care facility which exceeds the
22capital expenditure minimum; however, any capital expenditure
23made by or on behalf of a health care facility for (i) the
24construction or modification of a facility licensed under the
25Assisted Living and Shared Housing Act or (ii) a conversion
26project undertaken in accordance with Section 30 of the Older

HB5069 Enrolled- 20 -LRB100 15828 MJP 30937 b
1Adult Services Act shall be excluded from any obligations under
2this Act.
3 "Establish" means the construction of a health care
4facility or the replacement of an existing facility on another
5site or the initiation of a category of service.
6 "Major medical equipment" means medical equipment which is
7used for the provision of medical and other health services and
8which costs in excess of the capital expenditure minimum,
9except that such term does not include medical equipment
10acquired by or on behalf of a clinical laboratory to provide
11clinical laboratory services if the clinical laboratory is
12independent of a physician's office and a hospital and it has
13been determined under Title XVIII of the Social Security Act to
14meet the requirements of paragraphs (10) and (11) of Section
151861(s) of such Act. In determining whether medical equipment
16has a value in excess of the capital expenditure minimum, the
17value of studies, surveys, designs, plans, working drawings,
18specifications, and other activities essential to the
19acquisition of such equipment shall be included.
20 "Capital Expenditure" means an expenditure: (A) made by or
21on behalf of a health care facility (as such a facility is
22defined in this Act); and (B) which under generally accepted
23accounting principles is not properly chargeable as an expense
24of operation and maintenance, or is made to obtain by lease or
25comparable arrangement any facility or part thereof or any
26equipment for a facility or part; and which exceeds the capital

HB5069 Enrolled- 21 -LRB100 15828 MJP 30937 b
1expenditure minimum.
2 For the purpose of this paragraph, the cost of any studies,
3surveys, designs, plans, working drawings, specifications, and
4other activities essential to the acquisition, improvement,
5expansion, or replacement of any plant or equipment with
6respect to which an expenditure is made shall be included in
7determining if such expenditure exceeds the capital
8expenditures minimum. Unless otherwise interdependent, or
9submitted as one project by the applicant, components of
10construction or modification undertaken by means of a single
11construction contract or financed through the issuance of a
12single debt instrument shall not be grouped together as one
13project. Donations of equipment or facilities to a health care
14facility which if acquired directly by such facility would be
15subject to review under this Act shall be considered capital
16expenditures, and a transfer of equipment or facilities for
17less than fair market value shall be considered a capital
18expenditure for purposes of this Act if a transfer of the
19equipment or facilities at fair market value would be subject
20to review.
21 "Capital expenditure minimum" means $11,500,000 for
22projects by hospital applicants, $6,500,000 for applicants for
23projects related to skilled and intermediate care long-term
24care facilities licensed under the Nursing Home Care Act, and
25$3,000,000 for projects by all other applicants, which shall be
26annually adjusted to reflect the increase in construction costs

HB5069 Enrolled- 22 -LRB100 15828 MJP 30937 b
1due to inflation, for major medical equipment and for all other
2capital expenditures.
3 "Financial Commitment" means the commitment of at least 33%
4of total funds assigned to cover total project cost, which
5occurs by the actual expenditure of 33% or more of the total
6project cost or the commitment to expend 33% or more of the
7total project cost by signed contracts or other legal means.
8 "Non-clinical service area" means an area (i) for the
9benefit of the patients, visitors, staff, or employees of a
10health care facility and (ii) not directly related to the
11diagnosis, treatment, or rehabilitation of persons receiving
12services from the health care facility. "Non-clinical service
13areas" include, but are not limited to, chapels; gift shops;
14news stands; computer systems; tunnels, walkways, and
15elevators; telephone systems; projects to comply with life
16safety codes; educational facilities; student housing;
17patient, employee, staff, and visitor dining areas;
18administration and volunteer offices; modernization of
19structural components (such as roof replacement and masonry
20work); boiler repair or replacement; vehicle maintenance and
21storage facilities; parking facilities; mechanical systems for
22heating, ventilation, and air conditioning; loading docks; and
23repair or replacement of carpeting, tile, wall coverings,
24window coverings or treatments, or furniture. Solely for the
25purpose of this definition, "non-clinical service area" does
26not include health and fitness centers.

HB5069 Enrolled- 23 -LRB100 15828 MJP 30937 b
1 "Areawide" means a major area of the State delineated on a
2geographic, demographic, and functional basis for health
3planning and for health service and having within it one or
4more local areas for health planning and health service. The
5term "region", as contrasted with the term "subregion", and the
6word "area" may be used synonymously with the term "areawide".
7 "Local" means a subarea of a delineated major area that on
8a geographic, demographic, and functional basis may be
9considered to be part of such major area. The term "subregion"
10may be used synonymously with the term "local".
11 "Physician" means a person licensed to practice in
12accordance with the Medical Practice Act of 1987, as amended.
13 "Licensed health care professional" means a person
14licensed to practice a health profession under pertinent
15licensing statutes of the State of Illinois.
16 "Director" means the Director of the Illinois Department of
17Public Health.
18 "Agency" or "Department" means the Illinois Department of
19Public Health.
20 "Alternative health care model" means a facility or program
21authorized under the Alternative Health Care Delivery Act.
22 "Out-of-state facility" means a person that is both (i)
23licensed as a hospital or as an ambulatory surgery center under
24the laws of another state or that qualifies as a hospital or an
25ambulatory surgery center under regulations adopted pursuant
26to the Social Security Act and (ii) not licensed under the

HB5069 Enrolled- 24 -LRB100 15828 MJP 30937 b
1Ambulatory Surgical Treatment Center Act, the Hospital
2Licensing Act, or the Nursing Home Care Act. Affiliates of
3out-of-state facilities shall be considered out-of-state
4facilities. Affiliates of Illinois licensed health care
5facilities 100% owned by an Illinois licensed health care
6facility, its parent, or Illinois physicians licensed to
7practice medicine in all its branches shall not be considered
8out-of-state facilities. Nothing in this definition shall be
9construed to include an office or any part of an office of a
10physician licensed to practice medicine in all its branches in
11Illinois that is not required to be licensed under the
12Ambulatory Surgical Treatment Center Act.
13 "Change of ownership of a health care facility" means a
14change in the person who has ownership or control of a health
15care facility's physical plant and capital assets. A change in
16ownership is indicated by the following transactions: sale,
17transfer, acquisition, lease, change of sponsorship, or other
18means of transferring control.
19 "Related person" means any person that: (i) is at least 50%
20owned, directly or indirectly, by either the health care
21facility or a person owning, directly or indirectly, at least
2250% of the health care facility; or (ii) owns, directly or
23indirectly, at least 50% of the health care facility.
24 "Charity care" means care provided by a health care
25facility for which the provider does not expect to receive
26payment from the patient or a third-party payer.

HB5069 Enrolled- 25 -LRB100 15828 MJP 30937 b
1 "Freestanding emergency center" means a facility subject
2to licensure under Section 32.5 of the Emergency Medical
3Services (EMS) Systems Act.
4 "Category of service" means a grouping by generic class of
5various types or levels of support functions, equipment, care,
6or treatment provided to patients or residents, including, but
7not limited to, classes such as medical-surgical, pediatrics,
8or cardiac catheterization. A category of service may include
9subcategories or levels of care that identify a particular
10degree or type of care within the category of service. Nothing
11in this definition shall be construed to include the practice
12of a physician or other licensed health care professional while
13functioning in an office providing for the care, diagnosis, or
14treatment of patients. A category of service that is subject to
15the Board's jurisdiction must be designated in rules adopted by
16the Board.
17 "State Board Staff Report" means the document that sets
18forth the review and findings of the State Board staff, as
19prescribed by the State Board, regarding applications subject
20to Board jurisdiction.
21(Source: P.A. 99-78, eff. 7-20-15; 99-180, eff. 7-29-15;
2299-527, eff. 1-1-17; 100-518, eff. 6-1-18.)
23 (20 ILCS 3960/13) (from Ch. 111 1/2, par. 1163)
24 (Section scheduled to be repealed on December 31, 2019)
25 Sec. 13. Investigation of applications for permits and

HB5069 Enrolled- 26 -LRB100 15828 MJP 30937 b
1certificates of recognition. The State Board shall make or
2cause to be made such investigations as it deems necessary in
3connection with an application for a permit or an application
4for a certificate of recognition, or in connection with a
5determination of whether or not construction or modification
6which has been commenced is in accord with the permit issued by
7the State Board or whether construction or modification has
8been commenced without a permit having been obtained. The State
9Board may issue subpoenas duces tecum requiring the production
10of records and may administer oaths to such witnesses.
11 Any circuit court of this State, upon the application of
12the State Board or upon the application of any party to such
13proceedings, may, in its discretion, compel the attendance of
14witnesses, the production of books, papers, records, or
15memoranda and the giving of testimony before the State Board,
16by a proceeding as for contempt, or otherwise, in the same
17manner as production of evidence may be compelled before the
18court.
19 The State Board shall require all health facilities
20operating in this State to provide such reasonable reports at
21such times and containing such information as is needed by it
22to carry out the purposes and provisions of this Act. Prior to
23collecting information from health facilities, the State Board
24shall make reasonable efforts through a public process to
25consult with health facilities and associations that represent
26them to determine whether data and information requests will

HB5069 Enrolled- 27 -LRB100 15828 MJP 30937 b
1result in useful information for health planning, whether
2sufficient information is available from other sources, and
3whether data requested is routinely collected by health
4facilities and is available without retrospective record
5review. Data and information requests shall not impose undue
6paperwork burdens on health care facilities and personnel.
7Health facilities not complying with this requirement shall be
8reported to licensing, accrediting, certifying, or payment
9agencies as being in violation of State law. Health care
10facilities and other parties at interest shall have reasonable
11access, under rules established by the State Board, to all
12planning information submitted in accord with this Act
13pertaining to their area.
14 Among the reports to be required by the State Board are
15facility questionnaires for health care facilities licensed
16under the Ambulatory Surgical Treatment Center Act, the
17Hospital Licensing Act, the Nursing Home Care Act, the ID/DD
18Community Care Act, the MC/DD Act, or the Specialized Mental
19Health Rehabilitation Act of 2013 and health care facilities
20that are required to meet the requirements of 42 CFR 494 in
21order to be certified for participation in Medicare and
22Medicaid under Titles XVIII and XIX of the federal Social
23Security Act , or the End Stage Renal Disease Facility Act.
24These questionnaires shall be conducted on an annual basis and
25compiled by the State Board. For health care facilities
26licensed under the Nursing Home Care Act or the Specialized

HB5069 Enrolled- 28 -LRB100 15828 MJP 30937 b
1Mental Health Rehabilitation Act of 2013, these reports shall
2include, but not be limited to, the identification of specialty
3services provided by the facility to patients, residents, and
4the community at large. Annual reports for facilities licensed
5under the ID/DD Community Care Act and facilities licensed
6under the MC/DD Act shall be different from the annual reports
7required of other health care facilities and shall be specific
8to those facilities licensed under the ID/DD Community Care Act
9or the MC/DD Act. The Health Facilities and Services Review
10Board shall consult with associations representing facilities
11licensed under the ID/DD Community Care Act and associations
12representing facilities licensed under the MC/DD Act when
13developing the information requested in these annual reports.
14For health care facilities that contain long term care beds,
15the reports shall also include the number of staffed long term
16care beds, physical capacity for long term care beds at the
17facility, and long term care beds available for immediate
18occupancy. For purposes of this paragraph, "long term care
19beds" means beds (i) licensed under the Nursing Home Care Act,
20(ii) licensed under the ID/DD Community Care Act, (iii)
21licensed under the MC/DD Act, (iv) licensed under the Hospital
22Licensing Act, or (v) licensed under the Specialized Mental
23Health Rehabilitation Act of 2013 and certified as skilled
24nursing or nursing facility beds under Medicaid or Medicare.
25(Source: P.A. 98-1086, eff. 8-26-14; 99-180, eff. 7-29-15.)

HB5069 Enrolled- 29 -LRB100 15828 MJP 30937 b
1 (30 ILCS 105/5.590 rep.)
2 Section 10. The State Finance Act is amended by repealing
3Section 5.590.
4 (210 ILCS 62/Act rep.)
5 Section 15. The End Stage Renal Disease Facility Act is
6repealed.
7 Section 20. The Alzheimer's Disease and Related Dementias
8Services Act is amended by changing Section 15 as follows:
9 (410 ILCS 406/15)
10 (For Act repeal see Section 90)
11 Sec. 15. Applicability. Programs covered by this Act
12include, but are not limited to, health care facilities
13licensed or certified by the Assisted Living and Shared Housing
14Act; Life Care Facilities Act; Nursing Home Care Act;
15Specialized Mental Health Rehabilitation Act of 2013; Home
16Health, Home Services, and Home Nursing Agency Licensing Act;
17and Hospice Program Licensing Act; and End Stage Renal Disease
18Facility Act. This Act does not apply to physicians licensed to
19practice medicine in all its branches.
20(Source: P.A. 99-822, eff. 8-15-16.)
21 Section 95. No acceleration or delay. Where this Act makes
22changes in a statute that is represented in this Act by text

HB5069 Enrolled- 30 -LRB100 15828 MJP 30937 b
1that is not yet or no longer in effect (for example, a Section
2represented by multiple versions), the use of that text does
3not accelerate or delay the taking effect of (i) the changes
4made by this Act or (ii) provisions derived from any other
5Public Act.
6 Section 99. Effective date. This Act takes effect upon
7becoming law.
feedback