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1 | | AN ACT concerning civil law.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Health Facilities Planning Act is |
5 | | amended by changing Section 8.5 as follows:
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6 | | (20 ILCS 3960/8.5) |
7 | | (Section scheduled to be repealed on December 31, 2029) |
8 | | Sec. 8.5. Certificate of exemption for change of ownership |
9 | | of a health care facility; discontinuation of a category of |
10 | | service; public notice and public hearing. |
11 | | (a) Upon a finding that an application for a change of |
12 | | ownership is complete, the State Board shall publish a legal |
13 | | notice on 3 consecutive days in a newspaper of general |
14 | | circulation in the area or community to be affected and afford |
15 | | the public an opportunity to request a hearing. If the |
16 | | application is for a facility located in a Metropolitan |
17 | | Statistical Area, an additional legal notice shall be |
18 | | published in a newspaper of limited circulation, if one |
19 | | exists, in the area in which the facility is located. If the |
20 | | newspaper of limited circulation is published on a daily |
21 | | basis, the additional legal notice shall be published on 3 |
22 | | consecutive days. The applicant shall pay the cost incurred by |
23 | | the Board in publishing the change of ownership notice in |
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1 | | newspapers as required under this subsection. The legal notice |
2 | | shall also be posted on the Health Facilities and Services |
3 | | Review Board's web site and sent to the State Representative |
4 | | and State Senator of the district in which the health care |
5 | | facility is located and to the Office of the Attorney General . |
6 | | An application for change of ownership of a hospital shall not |
7 | | be deemed complete without a signed certification that for a |
8 | | period of 2 years after the change of ownership transaction is |
9 | | effective, the hospital will not adopt a charity care policy |
10 | | that is
more restrictive than the policy in effect during the |
11 | | year prior to the transaction. An application for a change of |
12 | | ownership need not contain signed transaction documents so |
13 | | long as it includes the following key terms of the |
14 | | transaction: names and background of the parties; structure of |
15 | | the transaction; the person who will be the licensed or |
16 | | certified entity after the transaction; the ownership or |
17 | | membership interests in such licensed or certified entity both |
18 | | prior to and after the transaction; fair market value of |
19 | | assets to be transferred; and the purchase price or other form |
20 | | of consideration to be provided for those assets. The issuance |
21 | | of the certificate of exemption shall be contingent upon the |
22 | | applicant submitting a statement to the Board within 90 days |
23 | | after the closing date of the transaction, or such longer |
24 | | period as provided by the Board, certifying that the change of |
25 | | ownership has been completed in accordance with the key terms |
26 | | contained in the application. If such key terms of the |
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1 | | transaction change, a new application shall be required. |
2 | | Where a change of ownership is among related persons, and |
3 | | there are no other changes being proposed at the health care |
4 | | facility that would otherwise require a permit or exemption |
5 | | under this Act, the applicant shall submit an application |
6 | | consisting of a standard notice in a form set forth by the |
7 | | Board briefly explaining the reasons for the proposed change |
8 | | of ownership. Once such an application is submitted to the |
9 | | Board and reviewed by the Board staff, the Board Chair shall |
10 | | take action on an application for an exemption for a change of |
11 | | ownership among related persons within 45 days after the |
12 | | application has been deemed complete, provided the application |
13 | | meets the applicable standards under this Section. If the |
14 | | Board Chair has a conflict of interest or for other good cause, |
15 | | the Chair may request review by the Board. Notwithstanding any |
16 | | other provision of this Act, for purposes of this Section, a |
17 | | change of ownership among related persons means a transaction |
18 | | where the parties to the transaction are under common control |
19 | | or ownership before and after the transaction is completed. |
20 | | Nothing in this Act shall be construed as authorizing the |
21 | | Board to impose any conditions, obligations, or limitations, |
22 | | other than those required by this Section, with respect to the |
23 | | issuance of an exemption for a change of ownership, including, |
24 | | but not limited to, the time period before which a subsequent |
25 | | change of ownership of the health care facility could be |
26 | | sought, or the commitment to continue to offer for a specified |
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1 | | time period any services currently offered by the health care |
2 | | facility. |
3 | | (a-3) (Blank). |
4 | | (a-5) Upon a finding that an application to discontinue a |
5 | | category of service is complete and provides the requested |
6 | | information, as specified by the State Board, an exemption |
7 | | shall be issued. No later than 30 days after the issuance of |
8 | | the exemption, the health care facility must give written |
9 | | notice of the discontinuation of the category of service to |
10 | | the State Senator and State Representative serving the |
11 | | legislative district in which the health care facility is |
12 | | located. No later than 90 days after a discontinuation of a |
13 | | category of service, the applicant must submit a statement to |
14 | | the State Board certifying that the discontinuation is |
15 | | complete. |
16 | | (b) If a public hearing is requested, it shall be held at |
17 | | least 15 days but no more than 30 days after the date of |
18 | | publication of the legal notice in the community in which the |
19 | | facility is located. The hearing shall be held in the affected |
20 | | area or community in a place of reasonable size and |
21 | | accessibility and a full and complete written transcript of |
22 | | the proceedings shall be made. All interested persons |
23 | | attending the hearing shall be given a reasonable opportunity |
24 | | to present their positions in writing or orally. The applicant |
25 | | shall provide a summary or describe the proposed change of |
26 | | ownership at the public hearing.
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1 | | (c) For the purposes of this Section "newspaper of limited |
2 | | circulation" means a newspaper intended to serve a particular |
3 | | or defined population of a specific geographic area within a |
4 | | Metropolitan Statistical Area such as a municipality, town, |
5 | | village, township, or community area, but does not include |
6 | | publications of professional and trade associations. |
7 | | (d) The changes made to this Section by this amendatory |
8 | | Act of the 101st General Assembly shall apply to all |
9 | | applications submitted after the effective date of this |
10 | | amendatory Act of the 101st General Assembly. |
11 | | (Source: P.A. 100-201, eff. 8-18-17; 101-83, eff. 7-15-19.)
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12 | | Section 10. The State Finance Act is amended by adding |
13 | | Section 5.990 as follows:
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14 | | (30 ILCS 105/5.990 new) |
15 | | Sec. 5.990. The Antitrust Enforcement Fund.
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16 | | Section 15. The Illinois Antitrust Act is amended by |
17 | | changing Section 7.2 and by adding Sections 7.2a and 13 as |
18 | | follows:
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19 | | (740 ILCS 10/7.2) (from Ch. 38, par. 60-7.2)
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20 | | Sec. 7.2. (1) Whenever it appears to the Attorney General |
21 | | that any person has
engaged in, is engaging in, or is about to |
22 | | engage in any act or practice
prohibited by this Act, or that |
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1 | | any person has assisted or participated
in any agreement or |
2 | | combination of the nature described herein, he may,
in his |
3 | | discretion, conduct an investigation as he deems necessary in
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4 | | connection with the matter and has the authority prior to the
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5 | | commencement of any civil or criminal action as provided for |
6 | | in the Act
to subpoena witnesses, and pursuant to a subpoena |
7 | | (i) compel their
attendance for the purpose of examining them |
8 | | under oath, (ii) require the
production of any books, |
9 | | documents, records, writings or tangible things
hereafter |
10 | | referred to as "documentary material" which
the Attorney |
11 | | General deems relevant or material to his investigation,
for |
12 | | inspection, reproducing or copying under such terms and |
13 | | conditions
as hereafter set forth, (iii) require written |
14 | | answers under oath to written
interrogatories, or (iv) require |
15 | | compliance with a combination of the
foregoing. Any subpoena |
16 | | issued by the Attorney General
shall contain the following |
17 | | information:
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18 | | (a) The statute and section thereof, the alleged |
19 | | violation of which
is under investigation and the general |
20 | | subject matter of the
investigation.
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21 | | (b) The date and place at which time the person is |
22 | | required to
appear or produce documentary material in his |
23 | | possession, custody or
control or submit answers to |
24 | | interrogatories in the office of the Attorney
General |
25 | | located in Springfield or
Chicago. Said date shall not be |
26 | | less than 10 days from date of service
of the subpoena.
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1 | | (c) Where documentary material is required to be |
2 | | produced, the same
shall be described by class so as to |
3 | | clearly indicate the material
demanded.
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4 | | The Attorney General is hereby authorized, and may so |
5 | | elect, to
require the production, pursuant to this section, of |
6 | | documentary
material or interrogatory answers prior to the |
7 | | taking of any testimony of
the person subpoenaed. Said |
8 | | documentary material shall be made available for
inspection |
9 | | and copying during normal business hours at the principal
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10 | | place of business of the person served, or at such other time |
11 | | and place,
as may be agreed upon by the person served and the |
12 | | Attorney General.
When documentary material is demanded by |
13 | | subpoena, said subpoena shall
not:
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14 | | (i) contain any requirement which would be |
15 | | unreasonable or improper
if contained in a subpoena duces |
16 | | tecum issued by a court of this State;
or
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17 | | (ii) require the disclosure of any documentary |
18 | | material which would
be privileged, or which for any other |
19 | | reason would not be required by a
subpoena duces tecum |
20 | | issued by a court of this State.
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21 | | (2) The production of documentary material in response to |
22 | | a subpoena served
pursuant to this Section shall be made under |
23 | | a sworn certificate, in such
form as the subpoena designates, |
24 | | by the person, if a natural person, to
whom the demand is |
25 | | directed or, if not a natural person, by a person or
persons |
26 | | having knowledge of the facts and circumstances relating to |
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1 | | such
production, to the effect that all of the documentary |
2 | | material required
by the demand and in the possession, |
3 | | custody, or control of the person to
whom the demand is |
4 | | directed has been produced and made available to the
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5 | | custodian. Answers to interrogatories shall be accompanied by |
6 | | a statement
under oath attesting to the accuracy of the |
7 | | answers.
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8 | | While in the possession of the Attorney General and under |
9 | | such reasonable
terms and conditions as the Attorney General |
10 | | shall prescribe: (A) documentary
material shall be available |
11 | | for examination by the person who produced such
material or by |
12 | | any duly authorized representative of such person, (B)
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13 | | transcript of oral testimony shall be available for |
14 | | examination by the person
who produced such testimony, or his |
15 | | or her counsel and (C) answers to
interrogatories shall be |
16 | | available for examination by the person who swore to
their |
17 | | accuracy.
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18 | | Except as otherwise provided in this Section, no |
19 | | documentary material,
transcripts of oral testimony, or |
20 | | answers to interrogatories, or copies thereof, in the |
21 | | possession of the
Attorney General shall be available for |
22 | | examination by any individual other
than an authorized |
23 | | employee of the Attorney General or other law enforcement
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24 | | officials, federal, State, or local, without the consent of |
25 | | the person who produced
such material, transcripts, or |
26 | | interrogatory answers. Such documentary material, transcripts |
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1 | | of oral testimony, or answers to interrogatories, or copies |
2 | | thereof may be used by the Attorney General in any |
3 | | administrative or judicial action or proceeding.
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4 | | For purposes of this Section, all documentary materials, |
5 | | transcripts of oral testimony, or answers to interrogatories |
6 | | obtained by the Attorney General from other law enforcement |
7 | | officials , information voluntarily produced to the Attorney |
8 | | General for purposes of any investigation conducted under |
9 | | subsection (1), or information provided to the Attorney |
10 | | General pursuant to the notice requirement of Section 7.2a |
11 | | shall be treated as if produced pursuant to a subpoena served |
12 | | pursuant to this Section for purposes of maintaining the |
13 | | confidentiality of such information. |
14 | | (3) No person shall, with intent to avoid, evade, prevent, |
15 | | or obstruct
compliance in whole or in part by any person with |
16 | | any duly served subpoena
of the Attorney General under this |
17 | | Act, knowingly remove from any place,
conceal, withhold, |
18 | | destroy, mutilate, alter, or by any other means falsify
any |
19 | | documentary material that is the subject of such subpoena. A |
20 | | violation
of this subsection is a Class A misdemeanor. The |
21 | | Attorney General, with
such assistance as he may from time to |
22 | | time require of the State's Attorneys
in the several counties, |
23 | | shall investigate suspected violations of this
subsection and |
24 | | shall commence and try all prosecutions under this subsection.
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25 | | (Source: P.A. 96-751, eff. 1-1-10; 96-1000, eff. 7-2-10.)
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1 | | (740 ILCS 10/7.2a new) |
2 | | Sec. 7.2a. Notification to the Attorney General. |
3 | | (a) As used in this Section: |
4 | | "Acquisition" means an agreement, arrangement, or activity
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5 | | the consummation of which results in a person acquiring
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6 | | directly or indirectly the control of another person. |
7 | | "Acquisition"
includes the acquisition of voting securities |
8 | | and noncorporate
interests, such as assets, capital stock, |
9 | | membership
interests, or equity interests. |
10 | | "Contracting affiliation" means the formation of a |
11 | | relationship between 2 or more entities that permits the |
12 | | entities to negotiate jointly with health carriers or |
13 | | third-party administrators over rates for professional medical |
14 | | services, or for one entity to negotiate on behalf of the other |
15 | | entity with health carriers or third-party administrators over |
16 | | rates for professional medical services. "Contracting |
17 | | affiliation" does not include arrangements among entities |
18 | | under common ownership. |
19 | | "Covered transaction" means any merger, acquisition, or |
20 | | contracting affiliation between 2 or more health care |
21 | | facilities or provider organizations not previously under |
22 | | common ownership or contracting affiliation. |
23 | | "Health care facility" means the following facilities, |
24 | | organizations, and related persons: |
25 | | (1) An ambulatory surgical treatment center required |
26 | | to be licensed under the Ambulatory Surgical Treatment |
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1 | | Center Act. |
2 | | (2) An institution, place, building, or agency |
3 | | required to be licensed under the Hospital Licensing Act. |
4 | | (3) A hospital, ambulatory surgical treatment center, |
5 | | or kidney disease treatment center maintained by the State |
6 | | or any department or agency thereof. |
7 | | (4) A kidney disease treatment center, including a |
8 | | free-standing hemodialysis unit required to meet the |
9 | | requirements of 42 CFR 494 in order to be certified for |
10 | | participation in Medicare and Medicaid under Titles XVIII |
11 | | and XIX of the federal Social Security Act of 1935. |
12 | | (5) An institution, place, building, or room used for |
13 | | the performance of outpatient surgical procedures that is |
14 | | leased, owned, or operated by or on behalf of an |
15 | | out-of-state facility. |
16 | | (6) An institution, place, building, or room used for |
17 | | provision of a health care category of service, as defined |
18 | | under the Illinois Health Facilities Planning Act, |
19 | | including, but not limited to, cardiac catheterization and |
20 | | open heart surgery. |
21 | | With the exception of those health care facilities |
22 | | specifically included in this Section, nothing in this Section |
23 | | shall be intended to include facilities operated as a part of |
24 | | the practice of a physician or other licensed health care |
25 | | professional, whether practicing in his or her individual |
26 | | capacity or within the legal structure of any partnership, |
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1 | | medical or professional corporation, or unincorporated medical |
2 | | or professional group. Further, this Section shall not apply |
3 | | to physicians or other licensed health care professional's |
4 | | practices where such practices are carried out in a portion of |
5 | | a health care facility under contract with such health care |
6 | | facility by a physician or by other licensed health care |
7 | | professionals, whether practicing in his or her individual |
8 | | capacity or within the legal structure of any partnership, |
9 | | medical or professional corporation, or unincorporated medical |
10 | | or professional groups, unless the entity constructs, |
11 | | modifies, or establishes a health care facility as |
12 | | specifically defined in this Section. |
13 | | "Health care services revenue" means the total revenue |
14 | | received for health care services in the previous 12 months. |
15 | | "Health carriers" has the meaning given to that term in |
16 | | Section 10 of the Health Carrier External Review Act. |
17 | | "Illinois health care entity" means a health care facility |
18 | | or provider organization that has an office in or is doing |
19 | | business in this State. |
20 | | "Merger" means the consolidation of 2 or more |
21 | | organizations, including 2 or more organizations joining |
22 | | through a common parent organization or 2 or more |
23 | | organizations forming a new organization, but does not include |
24 | | a corporate reorganization. |
25 | | "Out-of-state health care entity" means a health care |
26 | | facility or provider organization that is not headquartered in |
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1 | | this State and does not do business in this State. |
2 | | "Provider organization" means a corporation, partnership, |
3 | | business trust, association, or organized group of persons, |
4 | | whether incorporated or not, which is in the business of |
5 | | health care delivery or management and that represents 20 or |
6 | | more health care providers in contracting with health carriers |
7 | | or third-party administrators for the payment of health care |
8 | | services. "Provider organization" includes physician |
9 | | organizations, physician-hospital organizations, independent |
10 | | practice associations, provider networks, and accountable care |
11 | | organizations. |
12 | | "Third-party administrator" means an entity that |
13 | | administers payments for health care services on behalf of a |
14 | | client in exchange for an administrative fee. |
15 | | (b) Health care facilities or provider organizations that |
16 | | are party to a covered transaction shall provide notice of |
17 | | such transaction to the Attorney General no later than 30 days |
18 | | prior to the transaction closing or effective date of the |
19 | | transaction. |
20 | | Covered transactions between an Illinois health care |
21 | | entity and an out-of-state health care entity must provide |
22 | | notice under this subsection where the out-of-state entity |
23 | | generates $10,000,000 or more in annual revenue from patients |
24 | | residing in this State. |
25 | | (c) The written notice provided by the parties under |
26 | | subsection (b) shall be provided as follows: |
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1 | | (1) For any health care facility or provider |
2 | | organization that is a party to a covered
transaction and |
3 | | files a premerger notification with the
Federal Trade |
4 | | Commission or the United States Department
of Justice, in |
5 | | compliance with the Hart-Scott-Rodino
Antitrust |
6 | | Improvements Act of 1976, 15 U.S.C. 18a, the
notice |
7 | | requirement is satisfied by providing a copy of
such |
8 | | filing to the Attorney General at the same time as it
is |
9 | | provided to the federal government. |
10 | | (2) For any health care facility that is a party to a
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11 | | covered transaction that is not described in paragraph
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12 | | (1), the notice requirement is satisfied when the |
13 | | healthcare facility files an application for a change of
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14 | | ownership with the Health Facilities and Services Review |
15 | | Board, in compliance with the Illinois Health Facilities
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16 | | Planning Act. The Health Facilities and Services Review
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17 | | Board shall provide a copy of such filing to the Attorney
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18 | | General at the same time as it is provided to the
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19 | | applicable State legislators under subsection (a) of
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20 | | Section 8.5 of the Illinois Health Facilities Planning
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21 | | Act. |
22 | | (3) For any health care facility or provider |
23 | | organization that is a party to a covered
transaction that |
24 | | is not described in paragraph (1) or (2),
written notice |
25 | | provided by the parties must include: |
26 | | (A) the names of the parties and their current |
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1 | | business address; |
2 | | (B) identification of all locations where health |
3 | | care services are currently provided by each party; |
4 | | (C) a brief description of the nature and purpose |
5 | | of the proposed transaction; and |
6 | | (D) the anticipated effective date of the proposed |
7 | | transaction. |
8 | | Nothing in this subsection prohibits the parties to a |
9 | | covered transaction from voluntarily providing additional |
10 | | information to the Attorney General. |
11 | | (d) The Attorney General may make any requests for |
12 | | additional information from the parties that is relevant to |
13 | | its investigation of the covered transaction within 30 days of |
14 | | the date notice is received under subsections (b) and (c). If |
15 | | the Attorney General requests additional information, the |
16 | | covered transaction may not proceed until 30 days after the |
17 | | parties have substantially complied with the request. Any |
18 | | subsequent request for additional information by the Attorney |
19 | | General shall not further delay the covered transaction from |
20 | | proceeding. Nothing in this Section precludes the Attorney |
21 | | General from conducting an investigation or enforcing State or |
22 | | federal antitrust laws at a later date. |
23 | | (e) Any health care facility or provider organization that |
24 | | fails to comply with any provision of this Section is subject |
25 | | to a civil penalty of not more than $500 per day for each day |
26 | | during which the health care facility or provider organization |
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1 | | is in violation of this Section. |
2 | | Whenever the Attorney General has reason to believe that a |
3 | | health care facility or provider organization has engaged in |
4 | | or is engaging in a covered transaction without complying with |
5 | | the provisions of this Section, the Attorney General may apply |
6 | | for and obtain, in an action in the Circuit Court of Sangamon |
7 | | or Cook County, a temporary restraining order or injunction, |
8 | | or both, prohibiting the health care facility or provider |
9 | | organization from continuing its noncompliance or doing any |
10 | | act in furtherance thereof. The court may make such further |
11 | | orders or judgments, at law or in equity, as may be necessary |
12 | | to remedy such noncompliance. |
13 | | Before bringing such an action or seeking to recover a |
14 | | civil
penalty, the Attorney General shall permit the health |
15 | | care
facility or provider organization to come into compliance |
16 | | with this Section within 10 days of being notified of its |
17 | | alleged noncompliance. The right to cure noncompliance does |
18 | | not exist on or after the covered transaction's proposed or |
19 | | actual closing date of the covered transaction, whichever is |
20 | | sooner.
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21 | | (740 ILCS 10/13 new) |
22 | | Sec. 13. Antitrust Enforcement Fund. Any penalties |
23 | | collected from an entity for violations of this Act shall be |
24 | | deposited into the Antitrust Enforcement Fund, a special fund |
25 | | created in the State treasury that is dedicated to enforcing |