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| Public Act 103-0526
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| HB2222 Enrolled | LRB103 30580 LNS 57017 b |
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Health Facilities Planning Act is |
amended by changing Section 8.5 as follows:
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(20 ILCS 3960/8.5) |
(Section scheduled to be repealed on December 31, 2029) |
Sec. 8.5. Certificate of exemption for change of ownership |
of a health care facility; discontinuation of a category of |
service; public notice and public hearing. |
(a) Upon a finding that an application for a change of |
ownership is complete, the State Board shall publish a legal |
notice on 3 consecutive days in a newspaper of general |
circulation in the area or community to be affected and afford |
the public an opportunity to request a hearing. If the |
application is for a facility located in a Metropolitan |
Statistical Area, an additional legal notice shall be |
published in a newspaper of limited circulation, if one |
exists, in the area in which the facility is located. If the |
newspaper of limited circulation is published on a daily |
basis, the additional legal notice shall be published on 3 |
consecutive days. The applicant shall pay the cost incurred by |
the Board in publishing the change of ownership notice in |
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newspapers as required under this subsection. The legal notice |
shall also be posted on the Health Facilities and Services |
Review Board's web site and sent to the State Representative |
and State Senator of the district in which the health care |
facility is located and to the Office of the Attorney General. |
An application for change of ownership of a hospital shall not |
be deemed complete without a signed certification that for a |
period of 2 years after the change of ownership transaction is |
effective, the hospital will not adopt a charity care policy |
that is
more restrictive than the policy in effect during the |
year prior to the transaction. An application for a change of |
ownership need not contain signed transaction documents so |
long as it includes the following key terms of the |
transaction: names and background of the parties; structure of |
the transaction; the person who will be the licensed or |
certified entity after the transaction; the ownership or |
membership interests in such licensed or certified entity both |
prior to and after the transaction; fair market value of |
assets to be transferred; and the purchase price or other form |
of consideration to be provided for those assets. The issuance |
of the certificate of exemption shall be contingent upon the |
applicant submitting a statement to the Board within 90 days |
after the closing date of the transaction, or such longer |
period as provided by the Board, certifying that the change of |
ownership has been completed in accordance with the key terms |
contained in the application. If such key terms of the |
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transaction change, a new application shall be required. |
Where a change of ownership is among related persons, and |
there are no other changes being proposed at the health care |
facility that would otherwise require a permit or exemption |
under this Act, the applicant shall submit an application |
consisting of a standard notice in a form set forth by the |
Board briefly explaining the reasons for the proposed change |
of ownership. Once such an application is submitted to the |
Board and reviewed by the Board staff, the Board Chair shall |
take action on an application for an exemption for a change of |
ownership among related persons within 45 days after the |
application has been deemed complete, provided the application |
meets the applicable standards under this Section. If the |
Board Chair has a conflict of interest or for other good cause, |
the Chair may request review by the Board. Notwithstanding any |
other provision of this Act, for purposes of this Section, a |
change of ownership among related persons means a transaction |
where the parties to the transaction are under common control |
or ownership before and after the transaction is completed. |
Nothing in this Act shall be construed as authorizing the |
Board to impose any conditions, obligations, or limitations, |
other than those required by this Section, with respect to the |
issuance of an exemption for a change of ownership, including, |
but not limited to, the time period before which a subsequent |
change of ownership of the health care facility could be |
sought, or the commitment to continue to offer for a specified |
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time period any services currently offered by the health care |
facility. |
The changes made by this amendatory Act of the 103rd |
General Assembly are inoperative on and after January 1, 2027. |
(a-3) (Blank). |
(a-5) Upon a finding that an application to discontinue a |
category of service is complete and provides the requested |
information, as specified by the State Board, an exemption |
shall be issued. No later than 30 days after the issuance of |
the exemption, the health care facility must give written |
notice of the discontinuation of the category of service to |
the State Senator and State Representative serving the |
legislative district in which the health care facility is |
located. No later than 90 days after a discontinuation of a |
category of service, the applicant must submit a statement to |
the State Board certifying that the discontinuation is |
complete. |
(b) If a public hearing is requested, it shall be held at |
least 15 days but no more than 30 days after the date of |
publication of the legal notice in the community in which the |
facility is located. The hearing shall be held in the affected |
area or community in a place of reasonable size and |
accessibility and a full and complete written transcript of |
the proceedings shall be made. All interested persons |
attending the hearing shall be given a reasonable opportunity |
to present their positions in writing or orally. The applicant |
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shall provide a summary or describe the proposed change of |
ownership at the public hearing.
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(c) For the purposes of this Section "newspaper of limited |
circulation" means a newspaper intended to serve a particular |
or defined population of a specific geographic area within a |
Metropolitan Statistical Area such as a municipality, town, |
village, township, or community area, but does not include |
publications of professional and trade associations. |
(d) The changes made to this Section by this amendatory |
Act of the 101st General Assembly shall apply to all |
applications submitted after the effective date of this |
amendatory Act of the 101st General Assembly. |
(Source: P.A. 100-201, eff. 8-18-17; 101-83, eff. 7-15-19.)
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Section 10. The State Finance Act is amended by adding |
Section 5.990 as follows:
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(30 ILCS 105/5.990 new) |
Sec. 5.990. The Antitrust Enforcement Fund. This Section |
is repealed on January 1, 2027.
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Section 15. The Illinois Antitrust Act is amended by |
changing Section 7.2 and by adding Sections 7.2a and 13 as |
follows:
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(740 ILCS 10/7.2) (from Ch. 38, par. 60-7.2)
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Sec. 7.2. (1) Whenever it appears to the Attorney General |
that any person has
engaged in, is engaging in, or is about to |
engage in any act or practice
prohibited by this Act, or that |
any person has assisted or participated
in any agreement or |
combination of the nature described herein, he may,
in his |
discretion, conduct an investigation as he deems necessary in
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connection with the matter and has the authority prior to the
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commencement of any civil or criminal action as provided for |
in the Act
to subpoena witnesses, and pursuant to a subpoena |
(i) compel their
attendance for the purpose of examining them |
under oath, (ii) require the
production of any books, |
documents, records, writings or tangible things
hereafter |
referred to as "documentary material" which
the Attorney |
General deems relevant or material to his investigation,
for |
inspection, reproducing or copying under such terms and |
conditions
as hereafter set forth, (iii) require written |
answers under oath to written
interrogatories, or (iv) require |
compliance with a combination of the
foregoing. Any subpoena |
issued by the Attorney General
shall contain the following |
information:
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(a) The statute and section thereof, the alleged |
violation of which
is under investigation and the general |
subject matter of the
investigation.
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(b) The date and place at which time the person is |
required to
appear or produce documentary material in his |
possession, custody or
control or submit answers to |
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interrogatories in the office of the Attorney
General |
located in Springfield or
Chicago. Said date shall not be |
less than 10 days from date of service
of the subpoena.
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(c) Where documentary material is required to be |
produced, the same
shall be described by class so as to |
clearly indicate the material
demanded.
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The Attorney General is hereby authorized, and may so |
elect, to
require the production, pursuant to this section, of |
documentary
material or interrogatory answers prior to the |
taking of any testimony of
the person subpoenaed. Said |
documentary material shall be made available for
inspection |
and copying during normal business hours at the principal
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place of business of the person served, or at such other time |
and place,
as may be agreed upon by the person served and the |
Attorney General.
When documentary material is demanded by |
subpoena, said subpoena shall
not:
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(i) contain any requirement which would be |
unreasonable or improper
if contained in a subpoena duces |
tecum issued by a court of this State;
or
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(ii) require the disclosure of any documentary |
material which would
be privileged, or which for any other |
reason would not be required by a
subpoena duces tecum |
issued by a court of this State.
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(2) The production of documentary material in response to |
a subpoena served
pursuant to this Section shall be made under |
a sworn certificate, in such
form as the subpoena designates, |
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by the person, if a natural person, to
whom the demand is |
directed or, if not a natural person, by a person or
persons |
having knowledge of the facts and circumstances relating to |
such
production, to the effect that all of the documentary |
material required
by the demand and in the possession, |
custody, or control of the person to
whom the demand is |
directed has been produced and made available to the
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custodian. Answers to interrogatories shall be accompanied by |
a statement
under oath attesting to the accuracy of the |
answers.
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While in the possession of the Attorney General and under |
such reasonable
terms and conditions as the Attorney General |
shall prescribe: (A) documentary
material shall be available |
for examination by the person who produced such
material or by |
any duly authorized representative of such person, (B)
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transcript of oral testimony shall be available for |
examination by the person
who produced such testimony, or his |
or her counsel and (C) answers to
interrogatories shall be |
available for examination by the person who swore to
their |
accuracy.
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Except as otherwise provided in this Section, no |
documentary material,
transcripts of oral testimony, or |
answers to interrogatories, or copies thereof, in the |
possession of the
Attorney General shall be available for |
examination by any individual other
than an authorized |
employee of the Attorney General or other law enforcement
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officials, federal, State, or local, without the consent of |
the person who produced
such material, transcripts, or |
interrogatory answers. Such documentary material, transcripts |
of oral testimony, or answers to interrogatories, or copies |
thereof may be used by the Attorney General in any |
administrative or judicial action or proceeding.
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For purposes of this Section, all documentary materials, |
transcripts of oral testimony, or answers to interrogatories |
obtained by the Attorney General from other law enforcement |
officials, information voluntarily produced to the Attorney |
General for purposes of any investigation conducted under |
subsection (1), or information provided to the Attorney |
General pursuant to the notice requirement of Section 7.2a |
shall be treated as if produced pursuant to a subpoena served |
pursuant to this Section for purposes of maintaining the |
confidentiality of such information. |
The changes made by this amendatory Act of the 103rd |
General Assembly are inoperative on and after January 1, 2027. |
(3) No person shall, with intent to avoid, evade, prevent, |
or obstruct
compliance in whole or in part by any person with |
any duly served subpoena
of the Attorney General under this |
Act, knowingly remove from any place,
conceal, withhold, |
destroy, mutilate, alter, or by any other means falsify
any |
documentary material that is the subject of such subpoena. A |
violation
of this subsection is a Class A misdemeanor. The |
Attorney General, with
such assistance as he may from time to |
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time require of the State's Attorneys
in the several counties, |
shall investigate suspected violations of this
subsection and |
shall commence and try all prosecutions under this subsection.
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(Source: P.A. 96-751, eff. 1-1-10; 96-1000, eff. 7-2-10.)
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(740 ILCS 10/7.2a new) |
Sec. 7.2a. Notification to the Attorney General. |
(a) As used in this Section: |
"Acquisition" means an agreement, arrangement, or activity
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the consummation of which results in a person acquiring
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directly or indirectly the control of another person. |
"Acquisition"
includes the acquisition of voting securities |
and noncorporate
interests, such as assets, capital stock, |
membership
interests, or equity interests. |
"Contracting affiliation" means the formation of a |
relationship between 2 or more entities that permits the |
entities to negotiate jointly with health carriers or |
third-party administrators over rates for professional medical |
services, or for one entity to negotiate on behalf of the other |
entity with health carriers or third-party administrators over |
rates for professional medical services. "Contracting |
affiliation" does not include arrangements among entities |
under common ownership. |
"Covered transaction" means any merger, acquisition, or |
contracting affiliation between 2 or more health care |
facilities or provider organizations not previously under |
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common ownership or contracting affiliation. |
"Health care facility" means the following facilities, |
organizations, and related persons: |
(1) An ambulatory surgical treatment center required |
to be licensed under the Ambulatory Surgical Treatment |
Center Act. |
(2) An institution, place, building, or agency |
required to be licensed under the Hospital Licensing Act. |
(3) A hospital, ambulatory surgical treatment center, |
or kidney disease treatment center maintained by the State |
or any department or agency thereof. |
(4) A kidney disease treatment center, 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 |
and XIX of the federal Social Security Act of 1935. |
(5) 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. |
(6) An institution, place, building, or room used for |
provision of a health care category of service, as defined |
under the Illinois Health Facilities Planning Act, |
including, but not limited to, cardiac catheterization and |
open heart surgery. |
With the exception of those health care facilities |
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specifically included in this Section, nothing in this Section |
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 or her individual |
capacity or within the legal structure of any partnership, |
medical or professional corporation, or unincorporated medical |
or professional group. Further, this Section 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 or her 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. |
"Health care services revenue" means the total revenue |
received for health care services in the previous 12 months. |
"Health carriers" has the meaning given to that term in |
Section 10 of the Health Carrier External Review Act. |
"Illinois health care entity" means a health care facility |
or provider organization that has an office in or is doing |
business in this State. |
"Merger" means the consolidation of 2 or more |
organizations, including 2 or more organizations joining |
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through a common parent organization or 2 or more |
organizations forming a new organization, but does not include |
a corporate reorganization. |
"Out-of-state health care entity" means a health care |
facility or provider organization that is not headquartered in |
this State and does not do business in this State. |
"Provider organization" means a corporation, partnership, |
business trust, association, or organized group of persons, |
whether incorporated or not, which is in the business of |
health care delivery or management and that represents 20 or |
more health care providers in contracting with health carriers |
or third-party administrators for the payment of health care |
services. "Provider organization" includes physician |
organizations, physician-hospital organizations, independent |
practice associations, provider networks, and accountable care |
organizations. |
"Third-party administrator" means an entity that |
administers payments for health care services on behalf of a |
client in exchange for an administrative fee. |
(b) Health care facilities or provider organizations that |
are party to a covered transaction shall provide notice of |
such transaction to the Attorney General no later than 30 days |
prior to the transaction closing or effective date of the |
transaction. |
Covered transactions between an Illinois health care |
entity and an out-of-state health care entity must provide |
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notice under this subsection where the out-of-state entity |
generates $10,000,000 or more in annual revenue from patients |
residing in this State. |
(c) The written notice provided by the parties under |
subsection (b) shall be provided as follows: |
(1) For any health care facility or provider |
organization that is a party to a covered
transaction and |
files a premerger notification with the
Federal Trade |
Commission or the United States Department
of Justice, in |
compliance with the Hart-Scott-Rodino
Antitrust |
Improvements Act of 1976, 15 U.S.C. 18a, the
notice |
requirement is satisfied by providing a copy of
such |
filing to the Attorney General at the same time as it
is |
provided to the federal government. |
(2) For any health care facility that is a party to a
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covered transaction that is not described in paragraph
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(1), the notice requirement is satisfied when the |
healthcare facility files an application for a change of
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ownership with the Health Facilities and Services Review |
Board, in compliance with the Illinois Health Facilities
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Planning Act. The Health Facilities and Services Review
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Board shall provide a copy of such filing to the Attorney
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General at the same time as it is provided to the
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applicable State legislators under subsection (a) of
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Section 8.5 of the Illinois Health Facilities Planning
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Act. |
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(3) For any health care facility or provider |
organization that is a party to a covered
transaction that |
is not described in paragraph (1) or (2),
written notice |
provided by the parties must include: |
(A) the names of the parties and their current |
business address; |
(B) identification of all locations where health |
care services are currently provided by each party; |
(C) a brief description of the nature and purpose |
of the proposed transaction; and |
(D) the anticipated effective date of the proposed |
transaction. |
Nothing in this subsection prohibits the parties to a |
covered transaction from voluntarily providing additional |
information to the Attorney General. |
(d) The Attorney General may make any requests for |
additional information from the parties that is relevant to |
its investigation of the covered transaction within 30 days of |
the date notice is received under subsections (b) and (c). If |
the Attorney General requests additional information, the |
covered transaction may not proceed until 30 days after the |
parties have substantially complied with the request. Any |
subsequent request for additional information by the Attorney |
General shall not further delay the covered transaction from |
proceeding. Nothing in this Section precludes the Attorney |
General from conducting an investigation or enforcing State or |
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federal antitrust laws at a later date. |
(e) Any health care facility or provider organization that |
fails to comply with any provision of this Section is subject |
to a civil penalty of not more than $500 per day for each day |
during which the health care facility or provider organization |
is in violation of this Section. |
Whenever the Attorney General has reason to believe that a |
health care facility or provider organization has engaged in |
or is engaging in a covered transaction without complying with |
the provisions of this Section, the Attorney General may apply |
for and obtain, in an action in the Circuit Court of Sangamon |
or Cook County, a temporary restraining order or injunction, |
or both, prohibiting the health care facility or provider |
organization from continuing its noncompliance or doing any |
act in furtherance thereof. The court may make such further |
orders or judgments, at law or in equity, as may be necessary |
to remedy such noncompliance. |
Before bringing such an action or seeking to recover a |
civil
penalty, the Attorney General shall permit the health |
care
facility or provider organization to come into compliance |
with this Section within 10 days of being notified of its |
alleged noncompliance. The right to cure noncompliance does |
not exist on or after the covered transaction's proposed or |
actual closing date of the covered transaction, whichever is |
sooner. |
(f) This Section is repealed on January 1, 2027.
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