Bill Text: IL HB3504 | 2015-2016 | 99th General Assembly | Engrossed

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

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Bill Title: Amends the Illinois Health Facilities Planning Act. Makes changes concerning: (i) the permit and exemption process for changes of ownership among related persons; (ii) an application to close a health care facility; and (iii) an application to discontinue a category of service. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Passed) 2015-07-28 - Public Act . . . . . . . . . 99-0154 [HB3504 Detail]

Download: Illinois-2015-HB3504-Engrossed.html

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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 6 and 8.5 as follows:
(20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
(Section scheduled to be repealed on December 31, 2019)
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. The State Board shall not require an applicant
to file a Letter of Intent before an application is filed. Such
application shall include affirmative evidence on which the
State Board or Chairman may make its 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 and discontinuation of a

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health care facility or category of service. 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 in accordance with Section 8.5 of
this Act. In connection with a change of ownership, the State
Board may approve the transfer of an existing permit without
regard to whether the permit to be transferred has yet been
obligated, except for permits establishing a new facility or a
new category of service.
(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 Board staff 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 regarding the facts set forth in the review
or findings of the Board staff or reviewing organization.
Members of the public shall have until 10 days before the
meeting of the State Board to submit any written response
concerning the Board staff's written review or findings. The
Board staff may revise any findings to address corrections of
factual errors cited in the public response. At the meeting,
the State Board may, in its discretion, permit the submission
of other additional written materials.

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(d) Upon receipt of an application for a permit, the State
Board shall approve and authorize the issuance of a permit if
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.
(Source: P.A. 96-31, eff. 6-30-09; 97-1115, eff. 8-27-12.)
(20 ILCS 3960/8.5)
(Section scheduled to be repealed on December 31, 2019)
Sec. 8.5. Certificate of exemption for change of ownership

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of a health care facility; discontinuation of a health care
facility or 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 one day 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 one day 3
consecutive days. The applicant shall pay the cost incurred by
the Board in publishing the change of ownership notice in
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. 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

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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 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

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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
time period any services currently offered by the health care
facility.
(a-3) Upon a finding that an application to close a health
care facility 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

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limited circulation is published on a daily basis, the
additional legal notice shall be published on 3 consecutive
days. 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.
(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.
For the purposes of this subsection, "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.
(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 a place of
reasonable size and accessibility and a full and complete
written transcript of the proceedings shall be made. The

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applicant shall provide a summary of the proposal proposed
change of ownership for distribution at the public hearing.
(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.
(Source: P.A. 98-1086, eff. 8-26-14.)
Section 99. Effective date. This Act takes effect upon
becoming law.