Bill Text: IL SB0798 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Amends the Illinois Health Facilities Planning Act. Provides that the definition of "non-clinical service areas" includes components in a patient care unit used as educational space, consultation and touchdown rooms, and on-call rooms. Provides that the definition of "non-clinical service area" does not include areas in a patient care unit or areas that are required by Department of Public Health licensing standards, including life safety code regulations, such as hallways and other interdependent components to a clinical area. Defines "patient care unit" and "provider".

Sponsorship: Partisan Bill (Democrat 2)

Status: (Passed) 2025-08-15 - Public Act . . . . . . . . . 104-0365 [SB0798 Detail]

Download: Illinois-2025-SB0798-Enrolled.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Health Facilities Planning Act is
amended by changing Section 3 as follows:
(20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
(Section scheduled to be repealed on December 31, 2029)
Sec. 3. Definitions. As used in this Act:
"Health care facilities" means and includes the following
facilities, organizations, and related persons:
(1) An ambulatory surgical treatment center required
to be licensed pursuant to the Ambulatory Surgical
Treatment Center Act.
(2) An institution, place, building, or agency
required to be licensed pursuant to the Hospital Licensing
Act.
(3) Skilled and intermediate long term care facilities
licensed under the Nursing Home Care Act.
(A) If a demonstration project under the Nursing
Home Care Act applies for a certificate of need to
convert to a nursing facility, it shall meet the
licensure and certificate of need requirements in
effect as of the date of application.

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(B) Except as provided in item (A) of this
subsection, this Act does not apply to facilities
granted waivers under Section 3-102.2 of the Nursing
Home Care Act.
(3.5) Skilled and intermediate care facilities
licensed under the ID/DD Community Care Act or the MC/DD
Act. No permit or exemption is required for a facility
licensed under the ID/DD Community Care Act or the MC/DD
Act prior to the reduction of the number of beds at a
facility. If there is a total reduction of beds at a
facility licensed under the ID/DD Community Care Act or
the MC/DD Act, this is a discontinuation or closure of the
facility. If a facility licensed under the ID/DD Community
Care Act or the MC/DD Act reduces the number of beds or
discontinues the facility, that facility must notify the
Board as provided in Section 14.1 of this Act.
(3.7) Facilities licensed under the Specialized Mental
Health Rehabilitation Act of 2013.
(4) Hospitals, nursing homes, ambulatory surgical
treatment centers, or kidney disease treatment centers
maintained by the State or any department or agency
thereof.
(5) Kidney disease treatment centers, including a
free-standing hemodialysis unit required to meet the
requirements of 42 CFR 494 in order to be certified for
participation in Medicare and Medicaid under Titles XVIII

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and XIX of the federal Social Security Act.
(A) This Act does not apply to a dialysis facility
that provides only dialysis training, support, and
related services to individuals with end stage renal
disease who have elected to receive home dialysis.
(B) This Act does not apply to a dialysis unit
located in a licensed nursing home that offers or
provides dialysis-related services to residents with
end stage renal disease who have elected to receive
home dialysis within the nursing home.
(C) The Board, however, may require dialysis
facilities and licensed nursing homes under items (A)
and (B) of this subsection to report statistical
information on a quarterly basis to the Board to be
used by the Board to conduct analyses on the need for
proposed kidney disease treatment centers.
(6) An institution, place, building, or room used for
the performance of outpatient surgical procedures that is
leased, owned, or operated by or on behalf of an
out-of-state facility.
(7) An institution, place, building, or room used for
provision of a health care category of service, including,
but not limited to, cardiac catheterization and open heart
surgery.
(8) An institution, place, building, or room housing
major medical equipment used in the direct clinical

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diagnosis or treatment of patients, and whose project cost
is in excess of the capital expenditure minimum.
"Health care facilities" does not include the following
entities or facility transactions:
(1) Federally-owned facilities.
(2) Facilities used solely for healing by prayer or
spiritual means.
(3) An existing facility located on any campus
facility as defined in Section 5-5.8b of the Illinois
Public Aid Code, provided that the campus facility
encompasses 30 or more contiguous acres and that the new
or renovated facility is intended for use by a licensed
residential facility.
(4) Facilities licensed under the Supportive
Residences Licensing Act or the Assisted Living and Shared
Housing Act.
(5) Facilities designated as supportive living
facilities that are in good standing with the program
established under Section 5-5.01a of the Illinois Public
Aid Code.
(6) Facilities established and operating under the
Alternative Health Care Delivery Act as a children's
community-based health care center alternative health care
model demonstration program or as an Alzheimer's Disease
Management Center alternative health care model
demonstration program.

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(7) The closure of an entity or a portion of an entity
licensed under the Nursing Home Care Act, the Specialized
Mental Health Rehabilitation Act of 2013, the ID/DD
Community Care Act, or the MC/DD Act, with the exception
of facilities operated by a county or Illinois Veterans
Homes, that elect to convert, in whole or in part, to an
assisted living or shared housing establishment licensed
under the Assisted Living and Shared Housing Act and with
the exception of a facility licensed under the Specialized
Mental Health Rehabilitation Act of 2013 in connection
with a proposal to close a facility and re-establish the
facility in another location.
(8) Any change of ownership of a health care facility
that is licensed under the Nursing Home Care Act, the
Specialized Mental Health Rehabilitation Act of 2013, the
ID/DD Community Care Act, or the MC/DD Act, with the
exception of facilities operated by a county or Illinois
Veterans Homes. Changes of ownership of facilities
licensed under the Nursing Home Care Act must meet the
requirements set forth in Sections 3-101 through 3-119 of
the Nursing Home Care Act.
(9) (Blank).
With the exception of those health care facilities
specifically included in this Section, nothing in this Act
shall be intended to include facilities operated as a part of
the practice of a physician or other licensed health care

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professional, whether practicing in his individual capacity or
within the legal structure of any partnership, medical or
professional corporation, or unincorporated medical or
professional group. Further, this Act shall not apply to
physicians or other licensed health care professional's
practices where such practices are carried out in a portion of
a health care facility under contract with such health care
facility by a physician or by other licensed health care
professionals, whether practicing in his individual capacity
or within the legal structure of any partnership, medical or
professional corporation, or unincorporated medical or
professional groups, unless the entity constructs, modifies,
or establishes a health care facility as specifically defined
in this Section. This Act shall apply to construction or
modification and to establishment by such health care facility
of such contracted portion which is subject to facility
licensing requirements, irrespective of the party responsible
for such action or attendant financial obligation.
"Person" means any one or more natural persons, legal
entities, governmental bodies other than federal, or any
combination thereof.
"Consumer" means any person other than a person (a) whose
major occupation currently involves or whose official capacity
within the last 12 months has involved the providing,
administering or financing of any type of health care
facility, (b) who is engaged in health research or the

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teaching of health, (c) who has a material financial interest
in any activity which involves the providing, administering or
financing of any type of health care facility, or (d) who is or
ever has been a member of the immediate family of the person
defined by item (a), (b), or (c).
"State Board" or "Board" means the Health Facilities and
Services Review Board.
"Construction or modification" means the establishment,
erection, building, alteration, reconstruction,
modernization, improvement, extension, discontinuation,
change of ownership, of or by a health care facility, or the
purchase or acquisition by or through a health care facility
of equipment or service for diagnostic or therapeutic purposes
or for facility administration or operation, or any capital
expenditure made by or on behalf of a health care facility
which exceeds the capital expenditure minimum; however, any
capital expenditure made by or on behalf of a health care
facility for (i) the construction or modification of a
facility licensed under the Assisted Living and Shared Housing
Act or (ii) a conversion project undertaken in accordance with
Section 30 of the Older Adult Services Act shall be excluded
from any obligations under this Act.
"Establish" means the construction of a health care
facility or the replacement of an existing facility on another
site or the initiation of a category of service.
"Major medical equipment" means medical equipment which is

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used for the provision of medical and other health services
and which costs in excess of the capital expenditure minimum,
except that such term does not include medical equipment
acquired by or on behalf of a clinical laboratory to provide
clinical laboratory services if the clinical laboratory is
independent of a physician's office and a hospital and it has
been determined under Title XVIII of the Social Security Act
to meet the requirements of paragraphs (10) and (11) of
Section 1861(s) of such Act. In determining whether medical
equipment has a value in excess of the capital expenditure
minimum, the value of studies, surveys, designs, plans,
working drawings, specifications, and other activities
essential to the acquisition of such equipment shall be
included.
"Capital expenditure" means an expenditure: (A) made by or
on behalf of a health care facility (as such a facility is
defined in this Act); and (B) which under generally accepted
accounting principles is not properly chargeable as an expense
of operation and maintenance, or is made to obtain by lease or
comparable arrangement any facility or part thereof or any
equipment for a facility or part; and which exceeds the
capital expenditure minimum.
For the purpose of this paragraph, the cost of any
studies, surveys, designs, plans, working drawings,
specifications, and other activities essential to the
acquisition, improvement, expansion, or replacement of any

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plant or equipment with respect to which an expenditure is
made shall be included in determining if such expenditure
exceeds the capital expenditures minimum. Unless otherwise
interdependent, or submitted as one project by the applicant,
components of construction or modification undertaken by means
of a single construction contract or financed through the
issuance of a single debt instrument shall not be grouped
together as one project. Donations of equipment or facilities
to a health care facility which if acquired directly by such
facility would be subject to review under this Act shall be
considered capital expenditures, and a transfer of equipment
or facilities for less than fair market value shall be
considered a capital expenditure for purposes of this Act if a
transfer of the equipment or facilities at fair market value
would be subject to review.
"Capital expenditure minimum" means $11,500,000 for
projects by hospital applicants, $6,500,000 for applicants for
projects related to skilled and intermediate care long-term
care facilities licensed under the Nursing Home Care Act, and
$3,000,000 for projects by all other applicants, which shall
be annually adjusted to reflect the increase in construction
costs due to inflation, for major medical equipment and for
all other capital expenditures.
"Financial commitment" means the commitment of at least
33% of total funds assigned to cover total project cost, which
occurs by the actual expenditure of 33% or more of the total

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project cost or the commitment to expend 33% or more of the
total project cost by signed contracts or other legal means.
"Non-clinical service area" means an area (i) for the
benefit of the patients, visitors, staff, or employees of a
health care facility and (ii) not directly related to the
diagnosis, treatment, or rehabilitation of persons receiving
services from the health care facility. "Non-clinical service
areas" include, but are not limited to, chapels; gift shops;
news stands; computer systems; tunnels, walkways, and
elevators; telephone systems; projects to comply with life
safety codes; educational facilities; components in a patient
care unit used as educational space, consultation and
touchdown rooms, and on-call rooms; student housing; patient,
employee, staff, and visitor dining areas; administration and
volunteer offices; modernization of structural components
(such as roof replacement and masonry work); boiler repair or
replacement; vehicle maintenance and storage facilities;
parking facilities; mechanical systems for heating,
ventilation, and air conditioning; loading docks; and repair
or replacement of carpeting, tile, wall coverings, window
coverings or treatments, or furniture. "Non-clinical service
area" Solely for the purpose of this definition, "non-clinical
service area" does not include health and fitness centers,
areas in a patient care unit, or areas that are required by
Department licensing standards, including life safety code
regulations, such as hallways and other interdependent

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components to a clinical area.
"Areawide" means a major area of the State delineated on a
geographic, demographic, and functional basis for health
planning and for health service and having within it one or
more local areas for health planning and health service. The
term "region", as contrasted with the term "subregion", and
the word "area" may be used synonymously with the term
"areawide".
"Local" means a subarea of a delineated major area that on
a geographic, demographic, and functional basis may be
considered to be part of such major area. The term "subregion"
may be used synonymously with the term "local".
"Physician" means a person licensed to practice in
accordance with the Medical Practice Act of 1987, as amended.
"Licensed health care professional" means a person
licensed to practice a health profession under pertinent
licensing statutes of the State of Illinois.
"Director" means the Director of the Illinois Department
of Public Health.
"Agency" or "Department" means the Illinois Department of
Public Health.
"Alternative health care model" means a facility or
program authorized under the Alternative Health Care Delivery
Act.
"Out-of-state facility" means a person that is both (i)
licensed as a hospital or as an ambulatory surgery center

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under the laws of another state or that qualifies as a hospital
or an ambulatory surgery center under regulations adopted
pursuant to the Social Security Act and (ii) not licensed
under the Ambulatory Surgical Treatment Center Act, the
Hospital Licensing Act, or the Nursing Home Care Act.
Affiliates of out-of-state facilities shall be considered
out-of-state facilities. Affiliates of Illinois licensed
health care facilities 100% owned by an Illinois licensed
health care facility, its parent, or Illinois physicians
licensed to practice medicine in all its branches shall not be
considered out-of-state facilities. Nothing in this definition
shall be construed to include an office or any part of an
office of a physician licensed to practice medicine in all its
branches in Illinois that is not required to be licensed under
the Ambulatory Surgical Treatment Center Act.
"Change of ownership of a health care facility" means a
change in the person who has ownership or control of a health
care facility's physical plant and capital assets. A change in
ownership is indicated by the following transactions: sale,
transfer, acquisition, lease, change of sponsorship, or other
means of transferring control.
"Related person" means any person that: (i) is at least
50% owned, directly or indirectly, by either the health care
facility or a person owning, directly or indirectly, at least
50% of the health care facility; or (ii) owns, directly or
indirectly, at least 50% of the health care facility.

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"Charity care" means care provided by a health care
facility for which the provider does not expect to receive
payment from the patient or a third-party payer.
"Freestanding emergency center" means a facility subject
to licensure under Section 32.5 of the Emergency Medical
Services (EMS) Systems Act.
"Category of service" means a grouping by generic class of
various types or levels of support functions, equipment, care,
or treatment provided to patients or residents, including, but
not limited to, classes such as medical-surgical, pediatrics,
or cardiac catheterization. A category of service may include
subcategories or levels of care that identify a particular
degree or type of care within the category of service. Nothing
in this definition shall be construed to include the practice
of a physician or other licensed health care professional
while functioning in an office providing for the care,
diagnosis, or treatment of patients. A category of service
that is subject to the Board's jurisdiction must be designated
in rules adopted by the Board.
"State Board Staff Report" means the document that sets
forth the review and findings of the State Board staff, as
prescribed by the State Board, regarding applications subject
to Board jurisdiction.
"Patient care unit" means a physically identifiable and
organized unit in a clearly defined administrative and
geographic area that meets applicable standards of service in

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which nursing care and therapeutic services are provided on a
continuous basis and to which specific nursing and support
staff are assigned. "Patient care unit" does not include
education spaces, consultation and touchdown rooms, and
on-call rooms that are not required by Department licensing
standards.
"Provider" includes, but is not limited to, a hospital,
long-term care facility, end-stage renal dialysis facility,
ambulatory surgical treatment center, freestanding emergency
center, or birth center.
(Source: P.A. 100-518, eff. 6-1-18; 100-581, eff. 3-12-18;
100-957, eff. 8-19-18; 101-81, eff. 7-12-19; 101-650, eff.
7-7-20.)