Bill Text: IL HB2076 | 2023-2024 | 103rd General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the provisions of the introduced bill with the following changes. In provisions relating to designation of distressed facilities, provides that the Department of Public Health shall, by rule, create a timeframe and a procedure on how a facility can be removed from the list and the list may not contain more than 40 facilities per quarter. Provides that a facility has the right to appeal a designation and the procedure for appealing shall be outlined in rule. Removes provisions relating to temporary managers, and provides that a monitor (rather than a temporary manager) may apply to the Equity in Long-term Care Quality Fund on behalf of the facility for grant funds to implement the plan of improvement. Provides that the Department's mentor program is for owners and operators (rather than owners) of distressed facilities and that the program shall provide technical assistance and guidance to facilities. Provides that the Department's rule criteria for restricting the owners of a facility may not prohibit an owner who acquires ownership of a facility that is already on the distressed facility list before the owner's acquisition of the facility from acquiring additional skilled nursing facilities. Excludes from the provisions homes, institutions, or other places operated by or under the authority of the Illinois Department of Veterans' Affairs as those facilities are certified by the United States Department of Veterans Affairs and not the Centers for Medicare and Medicaid Services.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2023-06-30 - Public Act . . . . . . . . . 103-0139 [HB2076 Detail]

Download: Illinois-2023-HB2076-Engrossed.html

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HB2076 Engrossed LRB103 27114 CPF 53482 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Nursing Home Care Act is amended by
changing Section 3-304.2 as follows:
(210 ILCS 45/3-304.2)
Sec. 3-304.2. Designation of distressed facilities.
(a) (Blank). By May 1, 2011, and quarterly thereafter, the
Department shall generate and publish quarterly a list of
distressed facilities. Criteria for inclusion of certified
facilities on the list shall be those used by the U.S. General
Accounting Office in report 9-689, until such time as the
Department by rule modifies the criteria.
(b) (Blank). In deciding whether and how to modify the
criteria used by the General Accounting Office, the Department
shall complete a test run of any substitute criteria to
determine their reliability by comparing the number of
facilities identified as distressed against the number of
distressed facilities generated using the criteria contained
in the General Accounting Office report. The Department may
not adopt substitute criteria that generate fewer facilities
with a distressed designation than are produced by the General
Accounting Office criteria during the test run.

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(b-5) The Department shall, by rule, adopt criteria to
identify distressed facilities and shall publish a list of
distressed facilities quarterly. The Department shall, by
rule, create a timeframe and a procedure on how a facility can
be removed from the list. No facility shall be identified as a
distressed facility unless it has committed a violation or
deficiency that has harmed a resident.
(c) The Department shall, by rule, adopt criteria to
identify non-Medicaid-certified facilities that are distressed
and shall publish this list quarterly. The list may not
contain more than 40 facilities per quarter beginning October
1, 2011.
(d) The Department shall notify each facility of its
distressed designation, and of the calculation on which it is
based. A facility has the right to appeal a designation, and
the procedure for appealing shall be outlined in rule.
(e) A distressed facility may contract with an independent
consultant meeting criteria established by the Department. If
the distressed facility does not seek the assistance of an
independent consultant, the Department shall place a monitor
or a temporary manager in the facility, depending on the
Department's assessment of the condition of the facility.
(f) Independent consultant. A facility that has been
designated a distressed facility may contract with an
independent consultant to develop and assist in the
implementation of a plan of improvement to bring and keep the

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facility in compliance with this Act and, if applicable, with
federal certification requirements. A facility that contracts
with an independent consultant shall have 90 days to develop a
plan of improvement and demonstrate a good faith effort at
implementation, and another 90 days to achieve compliance and
take whatever additional actions are called for in the
improvement plan to maintain compliance. A facility that the
Department determines has a plan of improvement likely to
bring and keep the facility in compliance and that has
demonstrated good faith efforts at implementation within the
first 90 days may be eligible to receive a grant under the
Equity in Long-term Care Quality Act to assist it in achieving
and maintaining compliance. In this subsection, "independent"
consultant means an individual who has no professional or
financial relationship with the facility, any person with a
reportable ownership interest in the facility, or any related
parties. In this subsection, "related parties" has the meaning
attributed to it in the instructions for completing Medicaid
cost reports.
(f-5) Monitor and temporary managers. A distressed
facility that does not contract with a consultant shall be
assigned a monitor or a temporary manager at the Department's
discretion. The monitor cost of the temporary manager shall be
paid by the facility. The temporary manager shall have the
authority determined by the Department, which may grant the
temporary manager any or all of the authority a court may grant

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a receiver. The temporary manager may apply to the Equity in
Long-term Care Quality Fund on behalf of the facility for
grant funds to implement the plan of improvement.
(g) The Department shall, by rule, establish a mentor
program for owners and operators of distressed facilities. The
mentor program shall provide technical assistance and guidance
to facilities.
(h) The Department shall by rule establish sanctions (in
addition to those authorized elsewhere in this Article)
against distressed facilities that are not in compliance with
this Act and (if applicable) with federal certification
requirements. Criteria for imposing sanctions shall take into
account a facility's actions to address the violations and
deficiencies that caused its designation as a distressed
facility, and its compliance with this Act and with federal
certification requirements (if applicable), subsequent to its
designation as a distressed facility, including mandatory
revocations if criteria can be agreed upon by the Department,
resident advocates, and representatives of the nursing home
profession. By February 1, 2011, the Department shall report
to the General Assembly on the results of negotiations about
creating criteria for mandatory license revocations of
distressed facilities and make recommendations about any
statutory changes it believes are appropriate to protect the
health, safety, and welfare of nursing home residents.
(i) The Department may establish, by rule, criteria for

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restricting an owner of a facility from acquiring additional
nursing facilities if the owner of a facility was placed on the
distressed list while it was owned by that owner from
acquiring additional skilled nursing facilities. The
Department may not prohibit an owner who acquires ownership of
a facility that is already on the distressed facility list
before the owner's acquisition of the facility from acquiring
additional skilled nursing facilities.
(j) This Section does not apply to homes, institutions, or
other places operated by or under the authority of the
Illinois Department of Veterans' Affairs as these facilities
are certified by the United States Department of Veterans
Affairs and not the Centers for Medicare and Medicaid
Services.
(Source: P.A. 96-1372, eff. 7-29-10; 97-813, eff. 7-13-12.)