Bill Text: IL SB2153 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois Health Facilities Planning Act. Removes kidney disease treatment centers from the Act's application. In granting permits, provides that the Health Facilities Planning Board may consider the area's population growth but may not consider the applicant's charity care. Requires that the Compensation Review Board determine compensation for the voting members of the Health Facilities Planning Board commensurate with their duties and professional credentials. Removes the authority of the Department of Public Health to review and certify applications. Removes the July 1, 2009 repeal date. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-04-03 - Rule 3-9(a) / Re-referred to Assignments [SB2153 Detail]

Download: Illinois-2009-SB2153-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB2153 Introduced 2/20/2009, by Sen. Bill Brady SYNOPSIS AS INTRODUCED:
20 ILCS 3960/3 from Ch. 111 1/2, par. 1153
20 ILCS 3960/4 from Ch. 111 1/2, par. 1154
20 ILCS 3960/6 from Ch. 111 1/2, par. 1156
20 ILCS 3960/12.2
20 ILCS 3960/19.6 rep.
Amends the Illinois Health Facilities Planning Act. Removes kidney disease treatment centers from the Act's application. In granting permits, provides that the Health Facilities Planning Board may consider the area's population growth but may not consider the applicant's charity care. Requires that the Compensation Review Board determine compensation for the voting members of the Health Facilities Planning Board commensurate with their duties and professional credentials. Removes the authority of the Department of Public Health to review and certify applications. Removes the July 1, 2009 repeal date. Makes other changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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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 Sections 3, 4, 6, and 12.2 as follows:
(20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
(Section scheduled to be repealed on July 1, 2009)
Sec. 3. Definitions. As used in this Act:
"Health care facilities" means and includes the following
facilities and organizations:
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;
4. Hospitals, nursing homes, or ambulatory surgical
treatment centers, or kidney disease treatment centers
maintained by the State or any department or agency
thereof;
5. (Blank) Kidney disease treatment centers, including
a free-standing hemodialysis unit required to be licensed

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under the End Stage Renal Disease Facility Act; and
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.
This Act shall not apply to the construction of any new
facility or the renovation of any 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.
No federally owned facility shall be subject to the
provisions of this Act, nor facilities used solely for healing
by prayer or spiritual means.
No facility licensed under the Supportive Residences
Licensing Act or the Assisted Living and Shared Housing Act
shall be subject to the provisions of this Act.
A facility designated as a supportive living facility that
is in good standing with the program established under Section
5-5.01a of the Illinois Public Aid Code shall not be subject to
the provisions of this Act.
This Act does not apply to facilities granted waivers under
Section 3-102.2 of the Nursing Home Care Act. However, if a
demonstration project under that Act applies for a certificate
of need to convert to a nursing facility, it shall meet the

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licensure and certificate of need requirements in effect as of
the date of application.
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. 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. The Board, however, may require these dialysis
facilities and licensed nursing homes 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.
This Act shall not apply to the closure of an entity or a
portion of an entity licensed under the Nursing Home Care Act,
with the exceptions of facilities operated by a county or
Illinois Veterans Homes, that elects to convert, in whole or in
part, to an assisted living or shared housing establishment
licensed under the Assisted Living and Shared Housing Act.
This Act does not apply to any change of ownership of a
healthcare facility that is licensed under the Nursing Home
Care Act, with the exceptions 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

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the Nursing Home Care Act.
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
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. 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

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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 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 (a), (b), or (c).
"State Board" means the Health Facilities Planning 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

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site.
"Major medical equipment" means medical equipment which is
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,

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expansion, or replacement of any plant or equipment with
respect to which an expenditure is made shall be included in
determining if such expenditure exceeds the capital
expenditures minimum. 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 $6,000,000, 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; provided,
however, that when a capital expenditure is for the
construction or modification of a health and fitness center,
"capital expenditure minimum" means the capital expenditure
minimum for all other capital expenditures in effect on March
1, 2000, which shall be annually adjusted to reflect the
increase in construction costs due to inflation.
"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

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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; 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. Solely for the
purpose of this definition, "non-clinical service area" does
not include health and fitness centers.
"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".
"Areawide health planning organization" or "Comprehensive
health planning organization" means the health systems agency

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designated by the Secretary, Department of Health and Human
Services or any successor agency.
"Local health planning organization" means those local
health planning organizations that are designated as such by
the areawide health planning organization of the appropriate
area.
"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" means the Illinois Department of Public Health.
"Comprehensive health planning" means health planning
concerned with the total population and all health and
associated problems that affect the well-being of people and
that encompasses health services, health manpower, and health
facilities; and the coordination among these and with those
social, economic, and environmental factors that affect
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 under
the laws of another state or that qualifies as a hospital or an

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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.
"Charity care" means care provided by a health care

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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.
(Source: P.A. 94-342, eff. 7-26-05; 95-331, eff. 8-21-07;
95-543, eff. 8-28-07; 95-584, eff. 8-31-07; 95-727, eff.
6-30-08; 95-876, eff. 8-21-08.)
(20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
(Section scheduled to be repealed on July 1, 2009)
Sec. 4. Health Facilities Planning Board; membership;
appointment; term; compensation; quorum. There is created
within the executive branch of State government and independent
of any State agency the Health Facilities Planning Board, which
shall perform the functions described in this Act.
The State Board shall consist of 5 voting members. Each
member shall have professional credentials and experience in
the field of a reasonable knowledge of health planning, health
finance, or health care at the time of his or her appointment.
No person shall be appointed or continue to serve as a member
of the State Board who is, or whose spouse, parent, or child
is, a member of the Board of Directors of, has a financial
interest in, or has a business relationship with a health care
facility.
Notwithstanding any provision of this Section to the

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contrary, the term of office of each member of the State Board
is abolished on the effective date of this amendatory Act of
the 93rd General Assembly and those members no longer hold
office.
The State Board shall be appointed by the Governor, with
the advice and consent of the Senate. Not more than 3 of the
appointments shall be of the same political party at the time
of the appointment. No person shall be appointed as a State
Board member if that person has served, after the effective
date of Public Act 93-41, 2 3-year terms as a State Board
member, except for ex officio non-voting members.
The Secretary of Human Services, the Director of Healthcare
and Family Services, and the Director of Public Health, or
their designated representatives, shall serve as ex-officio,
non-voting members of the State Board.
Of those members initially appointed by the Governor under
this amendatory Act of the 93rd General Assembly, 2 shall serve
for terms expiring July 1, 2005, 2 shall serve for terms
expiring July 1, 2006, and 1 shall serve for a term expiring
July 1, 2007. Thereafter, each appointed member shall hold
office for a term of 3 years, provided that any member
appointed to fill a vacancy occurring prior to the expiration
of the term for which his or her predecessor was appointed
shall be appointed for the remainder of such term and the term
of office of each successor shall commence on July 1 of the
year in which his predecessor's term expires. Each member

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appointed after the effective date of this amendatory Act of
the 93rd General Assembly shall hold office until his or her
successor is appointed and qualified.
Voting State Board members shall receive compensation
commensurate with their duties and professional credentials as
determined by the Compensation Review Board.
State Board members, while serving on business of the State
Board, shall receive actual and necessary travel and
subsistence expenses while so serving away from their places of
residence. A member of the State Board who experiences a
significant financial hardship due to the loss of income on
days of attendance at meetings or while otherwise engaged in
the business of the State Board may be paid a hardship
allowance, as determined by and subject to the approval of the
Governor's Travel Control Board.
The Governor shall designate one of the members to serve as
Chairman and shall name as full-time Executive Secretary of the
State Board, a person qualified in health care facility
planning and in administration. The Agency shall provide
administrative and staff support for the State Board. The State
Board shall advise the Director of its budgetary and staff
needs and consult with the Director on annual budget
preparation.
The State Board shall meet at least once each quarter, or
as often as the Chairman of the State Board deems necessary, or
upon the request of a majority of the members.

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Three members of the State Board shall constitute a
quorum. The affirmative vote of 3 of the members of the State
Board shall be necessary for any action requiring a vote to be
taken by the State Board. A vacancy in the membership of the
State Board shall not impair the right of a quorum to exercise
all the rights and perform all the duties of the State Board as
provided by this Act.
A State Board member shall disqualify himself or herself
from the consideration of any application for a permit or
exemption in which the State Board member or the State Board
member's spouse, parent, or child: (i) has an economic interest
in the matter; or (ii) is employed by, serves as a consultant
for, or is a member of the governing board of the applicant or
a party opposing the application.
(Source: P.A. 95-331, eff. 8-21-07.)
(20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
(Section scheduled to be repealed on July 1, 2009)
Sec. 6. Application for permit or exemption; exemption
regulations.
(a) An application for a permit or exemption shall be made
to the State Board upon forms provided by the State Board. This
application shall contain such information as the State Board
deems necessary. Such application shall include affirmative
evidence on which the Director may make the findings required
under this Section and upon which the State Board may make its

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decision on the approval or denial of the permit or exemption.
(b) The State Board shall establish by regulation the
procedures and requirements regarding issuance of exemptions.
An exemption shall be approved when information required by the
Board by rule is submitted. Projects eligible for an exemption,
rather than a permit, include, but are not limited to, change
of ownership of a health care facility. For a change of
ownership of a health care facility between related persons,
the State Board shall provide by rule for an expedited process
for obtaining an exemption.
(c) All applications shall be signed by the applicant and
shall be verified by any 2 officers thereof.
(c-5) Any written review or findings of the Agency or any
other reviewing organization under Section 8 concerning an
application for a permit must be made available to the public
at least 14 calendar days before the meeting of the State Board
at which the review or findings are considered. The applicant
and members of the public may submit, to the State Board,
written responses in support of or in opposition to the review
or findings of the Agency or reviewing organization. A written
response must be submitted at least 2 business days before the
meeting of the State Board. At the meeting, the State Board
may, in its discretion, permit the submission of additional
written materials.
(d) Upon receipt of an application for a permit, the State
Board shall approve and authorize the issuance of a permit if

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it finds (1) that the applicant is fit, willing, and able to
provide a proper standard of health care service for the
community with particular regard to the qualification,
background and character of the applicant, (2) that economic
feasibility is demonstrated in terms of effect on the existing
and projected operating budget of the applicant and of the
health care facility; in terms of the applicant's ability to
establish and operate such facility in accordance with
licensure regulations promulgated under pertinent state laws;
and in terms of the projected impact on the total health care
expenditures in the facility and community, (3) that safeguards
are provided which assure that the establishment, construction
or modification of the health care facility or acquisition of
major medical equipment is consistent with the public interest,
and (4) that the proposed project is consistent with the
orderly and economic development of such facilities and
equipment and is in accord with standards, criteria, or plans
of need adopted and approved pursuant to the provisions of
Section 12 of this Act.
The State Board's standards for its findings under this
subsection may include consideration of the population growth,
or projected growth, of the area to be served but may not
include consideration of the applicant's charity care.
(Source: P.A. 95-237, eff. 1-1-08.)
(20 ILCS 3960/12.2)

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(Section scheduled to be repealed on July 1, 2009)
Sec. 12.2. Powers of the State Board Agency. For purposes
of this Act, the State Board Agency shall exercise the
following powers and duties:
(1) (Blank) Review applications for permits and exemptions
in accordance with the standards, criteria, and plans of need
established by the State Board under this Act and certify its
finding to the State Board.
(1.5) Post the following on its the Department's web site:
relevant (i) rules, (ii) standards, (iii) criteria, (iv) State
norms, (v) references used by Agency staff in making
determinations about whether application criteria are met, and
(vi) notices of project-related filings, including notice of
public comments related to the application.
(2) Charge and collect an amount determined by the State
Board to be reasonable fees for the processing of applications
by the State Board, the Agency, and the appropriate recognized
areawide health planning organization. The State Board shall
set the amounts by rule. All fees and fines collected under the
provisions of this Act shall be deposited into the Illinois
Health Facilities Planning Fund to be used for the expenses of
administering this Act.
(3) Coordinate with other State agencies having
responsibilities affecting health care facilities, including
those of licensure and cost reporting.
(Source: P.A. 93-41, eff. 6-27-03.)

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(20 ILCS 3960/19.6 rep.)
Section 10. The Illinois Health Facilities Planning Act is
amended by repealing Section 19.6.
Section 99. Effective date. This Act takes effect upon
becoming law.