Bill Text: IL HB0976 | 2009-2010 | 96th General Assembly | Enrolled

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Bill Title: Amends the Alternative Health Care Delivery Act and the Hospital Licensing Act. Provides that there shall be no more than the total postsurgical recovery care centers with certificate of need for beds as of January 1, 2008 (instead of a total of 12 centers); deletes provisions concerning specific locations of postsurgical recovery care centers. Repeals a provision that once the Department of Public Health has authorized a total of 12 postsurgical recovery care centers, no new centers shall be authorized for the duration of the demonstration program. Provides that for purposes of the Hospital Licensing Act, "hospital" includes postsurgical recovery care hospitals, and provides for the licensing of such hospitals. Eliminates obsolete provisions and makes other changes. Effective July 1, 2009.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2009-08-25 - Public Act . . . . . . . . . 96-0669 [HB0976 Detail]

Download: Illinois-2009-HB0976-Enrolled.html

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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Alternative Health Care Delivery Act is
amended by changing Sections 25 and 30 as follows:
(210 ILCS 3/25)
Sec. 25. Department responsibilities. The Department shall
have the responsibilities set forth in this Section.
(a) The Department shall adopt rules for each alternative
health care model authorized under this Act that shall include
but not be limited to the following:
(1) Further definition of the alternative health care
models.
(2) The definition and scope of the demonstration
program, including the implementation date and period of
operation, not to exceed 5 years.
(3) License application information required by the
Department.
(4) The care of patients in the alternative health care
models.
(5) Rights afforded to patients of the alternative
health care models.
(6) Physical plant requirements.

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(7) License application and renewal fees, which may
cover the cost of administering the demonstration program.
(8) Information that may be necessary for the Board and
the Department to monitor and evaluate the alternative
health care model demonstration program.
(9) Administrative fines that may be assessed by the
Department for violations of this Act or the rules adopted
under this Act.
(b) The Department shall issue, renew, deny, suspend, or
revoke licenses for alternative health care models.
(c) The Department shall perform licensure inspections of
alternative health care models as deemed necessary by the
Department to ensure compliance with this Act or rules.
(d) The Department shall deposit application fees, renewal
fees, and fines into the Regulatory Evaluation and Basic
Enforcement Fund.
(e) The Department shall assist the Board in performing the
Board's responsibilities under this Act.
(f) (Blank). The Department shall conduct a study to
determine the feasibility, the potential risks and benefits to
patients, and the potential effect on the health care delivery
system of authorizing recovery care of nonsurgical patients in
postsurgical recovery center demonstration models. The
Department shall report the findings of the study to the
General Assembly no later than November 1, 1998. The Director
shall appoint an advisory committee with representation from

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the Illinois Hospital and Health Systems Association, the
Illinois State Medical Society, and the Illinois Freestanding
Surgery Center Association, a physician who is board certified
in internal medicine, a consumer, and other representatives
deemed appropriate by the Director. The advisory committee
shall advise the Department as it carries out the study.
(g) (Blank). Before November 1, 1998 the Department shall
initiate a process to request public comments on how
postsurgical recovery centers admitting nonsurgical patients
should be regulated.
(Source: P.A. 90-600, eff. 6-25-98; 90-655, eff. 7-30-98.)
(210 ILCS 3/30)
Sec. 30. Demonstration program requirements. The
requirements set forth in this Section shall apply to
demonstration programs.
(a) There shall be no more than:
(i) 3 subacute care hospital alternative health care
models in the City of Chicago (one of which shall be
located on a designated site and shall have been licensed
as a hospital under the Illinois Hospital Licensing Act
within the 10 years immediately before the application for
a license);
(ii) 2 subacute care hospital alternative health care
models in the demonstration program for each of the
following areas:

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(1) Cook County outside the City of Chicago.
(2) DuPage, Kane, Lake, McHenry, and Will
Counties.
(3) Municipalities with a population greater than
50,000 not located in the areas described in item (i)
of subsection (a) and paragraphs (1) and (2) of item
(ii) of subsection (a); and
(iii) 4 subacute care hospital alternative health care
models in the demonstration program for rural areas.
In selecting among applicants for these licenses in rural
areas, the Health Facilities Planning Board and the Department
shall give preference to hospitals that may be unable for
economic reasons to provide continued service to the community
in which they are located unless the hospital were to receive
an alternative health care model license.
(a-5) There shall be no more than the a total number of 12
postsurgical recovery care centers with a certificate of need
for beds as of January 1, 2008. center alternative health care
models in the demonstration program, located as follows:
(1) Two in the City of Chicago.
(2) Two in Cook County outside the City of Chicago. At
least one of these shall be owned or operated by a hospital
devoted exclusively to caring for children.
(3) Two in Kane, Lake, and McHenry Counties.
(4) Four in municipalities with a population of 50,000
or more not located in the areas described in paragraphs

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(1), (2), and (3), 3 of which shall be owned or operated by
hospitals, at least 2 of which shall be located in counties
with a population of less than 175,000, according to the
most recent decennial census for which data are available,
and one of which shall be owned or operated by an
ambulatory surgical treatment center.
(5) Two in rural areas, both of which shall be owned or
operated by hospitals.
There shall be no postsurgical recovery care center
alternative health care models located in counties with
populations greater than 600,000 but less than 1,000,000. A
proposed postsurgical recovery care center must be owned or
operated by a hospital if it is to be located within, or will
primarily serve the residents of, a health service area in
which more than 60% of the gross patient revenue of the
hospitals within that health service area are derived from
Medicaid and Medicare, according to the most recently available
calendar year data from the Illinois Health Care Cost
Containment Council. Nothing in this paragraph shall preclude a
hospital and an ambulatory surgical treatment center from
forming a joint venture or developing a collaborative agreement
to own or operate a postsurgical recovery care center.
(a-10) There shall be no more than a total of 8 children's
respite care center alternative health care models in the
demonstration program, which shall be located as follows:
(1) One in the City of Chicago.

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(2) One in Cook County outside the City of Chicago.
(3) A total of 2 in the area comprised of DuPage, Kane,
Lake, McHenry, and Will counties.
(4) A total of 2 in municipalities with a population of
50,000 or more and not located in the areas described in
paragraphs (1), (2), or (3).
(5) A total of 2 in rural areas, as defined by the
Health Facilities Planning Board.
No more than one children's respite care model owned and
operated by a licensed skilled pediatric facility shall be
located in each of the areas designated in this subsection
(a-10).
(a-15) There shall be an authorized community-based
residential rehabilitation center alternative health care
model in the demonstration program. The community-based
residential rehabilitation center shall be located in the area
of Illinois south of Interstate Highway 70.
(a-20) There shall be an authorized Alzheimer's disease
management center alternative health care model in the
demonstration program. The Alzheimer's disease management
center shall be located in Will County, owned by a
not-for-profit entity, and endorsed by a resolution approved by
the county board before the effective date of this amendatory
Act of the 91st General Assembly.
(a-25) There shall be no more than 10 birth center
alternative health care models in the demonstration program,

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located as follows:
(1) Four in the area comprising Cook, DuPage, Kane,
Lake, McHenry, and Will counties, one of which shall be
owned or operated by a hospital and one of which shall be
owned or operated by a federally qualified health center.
(2) Three in municipalities with a population of 50,000
or more not located in the area described in paragraph (1)
of this subsection, one of which shall be owned or operated
by a hospital and one of which shall be owned or operated
by a federally qualified health center.
(3) Three in rural areas, one of which shall be owned
or operated by a hospital and one of which shall be owned
or operated by a federally qualified health center.
The first 3 birth centers authorized to operate by the
Department shall be located in or predominantly serve the
residents of a health professional shortage area as determined
by the United States Department of Health and Human Services.
There shall be no more than 2 birth centers authorized to
operate in any single health planning area for obstetric
services as determined under the Illinois Health Facilities
Planning Act. If a birth center is located outside of a health
professional shortage area, (i) the birth center shall be
located in a health planning area with a demonstrated need for
obstetrical service beds, as determined by the Illinois Health
Facilities Planning Board or (ii) there must be a reduction in
the existing number of obstetrical service beds in the planning

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area so that the establishment of the birth center does not
result in an increase in the total number of obstetrical
service beds in the health planning area.
(b) Alternative health care models, other than a model
authorized under subsection (a-20), shall obtain a certificate
of need from the Illinois Health Facilities Planning Board
under the Illinois Health Facilities Planning Act before
receiving a license by the Department. If, after obtaining its
initial certificate of need, an alternative health care
delivery model that is a community based residential
rehabilitation center seeks to increase the bed capacity of
that center, it must obtain a certificate of need from the
Illinois Health Facilities Planning Board before increasing
the bed capacity. Alternative health care models in medically
underserved areas shall receive priority in obtaining a
certificate of need.
(c) An alternative health care model license shall be
issued for a period of one year and shall be annually renewed
if the facility or program is in substantial compliance with
the Department's rules adopted under this Act. A licensed
alternative health care model that continues to be in
substantial compliance after the conclusion of the
demonstration program shall be eligible for annual renewals
unless and until a different licensure program for that type of
health care model is established by legislation, except that a
postsurgical recovery care center meeting the following

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requirements may apply within 3 years after the effective date
of this amendatory Act of the 96th General Assembly for a
Certificate of Need permit to operate as a hospital:
(1) The postsurgical recovery care center shall apply
to the Illinois Health Facilities Planning Board for a
Certificate of Need permit to discontinue the postsurgical
recovery care center and to establish a hospital.
(2) If the postsurgical recovery care center obtains a
Certificate of Need permit to operate as a hospital, it
shall apply for licensure as a hospital under the Hospital
Licensing Act and shall meet all statutory and regulatory
requirements of a hospital.
(3) After obtaining licensure as a hospital, any
license as an ambulatory surgical treatment center and any
license as a post-surgical recovery care center shall be
null and void.
(4) The former postsurgical recovery care center that
receives a hospital license must seek and use its best
efforts to maintain certification under Titles XVIII and
XIX of the federal Social Security Act.
The Department may issue a provisional license to any
alternative health care model that does not substantially
comply with the provisions of this Act and the rules adopted
under this Act if (i) the Department finds that the alternative
health care model has undertaken changes and corrections which
upon completion will render the alternative health care model

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in substantial compliance with this Act and rules and (ii) the
health and safety of the patients of the alternative health
care model will be protected during the period for which the
provisional license is issued. The Department shall advise the
licensee of the conditions under which the provisional license
is issued, including the manner in which the alternative health
care model fails to comply with the provisions of this Act and
rules, and the time within which the changes and corrections
necessary for the alternative health care model to
substantially comply with this Act and rules shall be
completed.
(d) Alternative health care models shall seek
certification under Titles XVIII and XIX of the federal Social
Security Act. In addition, alternative health care models shall
provide charitable care consistent with that provided by
comparable health care providers in the geographic area.
(d-5) The Department of Healthcare and Family Services
(formerly Illinois Department of Public Aid), in cooperation
with the Illinois Department of Public Health, shall develop
and implement a reimbursement methodology for all facilities
participating in the demonstration program. The Department of
Healthcare and Family Services shall keep a record of services
provided under the demonstration program to recipients of
medical assistance under the Illinois Public Aid Code and shall
submit an annual report of that information to the Illinois
Department of Public Health.

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(e) Alternative health care models shall, to the extent
possible, link and integrate their services with nearby health
care facilities.
(f) Each alternative health care model shall implement a
quality assurance program with measurable benefits and at
reasonable cost.
(Source: P.A. 95-331, eff. 8-21-07; 95-445, eff. 1-1-08.)
(210 ILCS 3/35.1 rep.)
Section 10. The Alternative Health Care Delivery Act is
amended by repealing Section 35.1.
Section 99. Effective date. This Act takes effect upon
becoming law.