HB 5000

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Full Text of HB5000
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	HB5000 - 104th General Assembly
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			Senate Amendment 001
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		HB5000 Enrolled		LRB104 18143 JRC 31582 b
1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Health Facilities Planning Act is
5amended by changing Section 8.5 as follows:
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7    (Section scheduled to be repealed on December 31, 2029)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
9of a health care facility; discontinuation of a category of
10service; public notice and public hearing.
11    (a) Upon a finding that an application for a change of
12ownership is complete, the State Board shall publish a legal
13notice on 3 consecutive days in a newspaper of general
14circulation in the area or community to be affected and afford
15the public an opportunity to request a hearing. If the
16application is for a facility located in a Metropolitan
17Statistical Area, an additional legal notice shall be
18published in a newspaper of limited circulation, if one
19exists, in the area in which the facility is located. If the
20newspaper of limited circulation is published on a daily
21basis, the additional legal notice shall be published on 3
22consecutive days. The applicant shall pay the cost incurred by
23the Board in publishing the change of ownership notice in
		HB5000 Enrolled	- 2 -	LRB104 18143 JRC 31582 b
1newspapers as required under this subsection. The legal notice
2shall also be posted on the Health Facilities and Services
3Review Board's web site and sent to the State Representative
4and State Senator of the district in which the health care
5facility is located and to the Office of the Attorney General.
6An application for change of ownership of a hospital shall not
7be deemed complete without a signed certification that for a
8period of 2 years after the change of ownership transaction is
9effective, the hospital will not adopt a charity care policy
10that is more restrictive than the policy in effect during the
11year prior to the transaction. An application for a change of
12ownership need not contain signed transaction documents so
13long as it includes the following key terms of the
14transaction: names and background of the parties; structure of
15the transaction; the person who will be the licensed or
16certified entity after the transaction; the ownership or
17membership interests in such licensed or certified entity both
18prior to and after the transaction; fair market value of
19assets to be transferred; and the purchase price or other form
20of consideration to be provided for those assets. The issuance
21of the certificate of exemption shall be contingent upon the
22applicant submitting a statement to the Board within 90 days
23after the closing date of the transaction, or such longer
24period as provided by the Board, certifying that the change of
25ownership has been completed in accordance with the key terms
26contained in the application. If such key terms of the
		HB5000 Enrolled	- 3 -	LRB104 18143 JRC 31582 b
1transaction change, a new application shall be required.
2    Where a change of ownership is among related persons, and
3there are no other changes being proposed at the health care
4facility that would otherwise require a permit or exemption
5under this Act, the applicant shall submit an application
6consisting of a standard notice in a form set forth by the
7Board briefly explaining the reasons for the proposed change
8of ownership. Once such an application is submitted to the
9Board and reviewed by the Board staff, the Board Chair shall
10take action on an application for an exemption for a change of
11ownership among related persons within 45 days after the
12application has been deemed complete, provided the application
13meets the applicable standards under this Section. If the
14Board Chair has a conflict of interest or for other good cause,
15the Chair may request review by the Board. Notwithstanding any
16other provision of this Act, for purposes of this Section, a
17change of ownership among related persons means a transaction
18where the parties to the transaction are under common control
19or ownership before and after the transaction is completed.
20    Nothing in this Act shall be construed as authorizing the
21Board to impose any conditions, obligations, or limitations,
22other than those required by this Section, with respect to the
23issuance of an exemption for a change of ownership, including,
24but not limited to, the time period before which a subsequent
25change of ownership of the health care facility could be
26sought, or the commitment to continue to offer for a specified
		HB5000 Enrolled	- 4 -	LRB104 18143 JRC 31582 b
1time period any services currently offered by the health care
2facility.
3    [The changes made by this amendatory Act of the 103rd ]
4[General Assembly are inoperative on and after January 1, 2027. ]
5    (a-3) (Blank).
6    (a-5) Upon a finding that an application to discontinue a
7category of service is complete and provides the requested
8information, as specified by the State Board, an exemption
9shall be issued. No later than 30 days after the issuance of
10the exemption, the health care facility must give written
11notice of the discontinuation of the category of service to
12the State Senator and State Representative serving the
13legislative district in which the health care facility is
14located. No later than 90 days after a discontinuation of a
15category of service, the applicant must submit a statement to
16the State Board certifying that the discontinuation is
17complete.
18    (b) If a public hearing is requested, it shall be held at
19least 15 days but no more than 30 days after the date of
20publication of the legal notice in the community in which the
21facility is located. The hearing shall be held in the affected
22area or community in a place of reasonable size and
23accessibility and a full and complete written transcript of
24the proceedings shall be made. All interested persons
25attending the hearing shall be given a reasonable opportunity
26to present their positions in writing or orally. The applicant
		HB5000 Enrolled	- 5 -	LRB104 18143 JRC 31582 b
1shall provide a summary or describe the proposed change of
2ownership at the public hearing.
3    (c) For the purposes of this Section "newspaper of limited
4circulation" means a newspaper intended to serve a particular
5or defined population of a specific geographic area within a
6Metropolitan Statistical Area such as a municipality, town,
7village, township, or community area, but does not include
8publications of professional and trade associations.
9    (d) The changes made to this Section by this amendatory
10Act of the 101st General Assembly shall apply to all
11applications submitted after the effective date of this
12amendatory Act of the 101st General Assembly.
13(Source: P.A. 103-526, eff. 1-1-24.)
14    Section 7. The State Finance Act is amended by changing
15Section 5.1007 as follows:
16    (30 ILCS 105/5.1007)
17    (Section scheduled to be repealed on January 1, 2027)
18    Sec. 5.1007. The Antitrust Enforcement Fund. [This Section ]
19[is repealed on January 1, 2027].
20(Source: P.A. 103-526, eff. 1-1-24; 103-605, eff. 7-1-24.)
21    Section 10. The Illinois Antitrust Act is amended by
22changing Sections 7.2a and 13 as follows:
		HB5000 Enrolled	- 6 -	LRB104 18143 JRC 31582 b
1    (740 ILCS 10/7.2a)
2    (Section scheduled to be repealed on January 1, 2027)
3    Sec. 7.2a. Notification to the Attorney General.
4    (a) As used in this Section:
5    "Acquisition" means an agreement, arrangement, or activity
6the consummation of which results in a person acquiring
7directly or indirectly the control of another person.
8"Acquisition" includes the acquisition of voting securities
9and noncorporate interests, such as assets, capital stock,
10membership interests, or equity interests.
11    "Contracting affiliation" means the formation of a
12relationship between 2 or more entities that permits the
13entities to negotiate jointly with health carriers or
14third-party administrators over rates for professional medical
15services, or for one entity to negotiate on behalf of the other
16entity with health carriers or third-party administrators over
17rates for professional medical services. "Contracting
18affiliation" does not include arrangements among entities
19under common ownership.
20    "Covered transaction" means any merger, acquisition, or
21contracting affiliation involving [between] 2 or more health
22care facilities, [or] provider organizations not previously
23under common ownership or contracting affiliation. A 
24transaction is a "covered transaction" subject to the notice 
25requirements even if the parties to the transaction are not 
26themselves a health care facility or provider organization but 
		HB5000 Enrolled	- 7 -	LRB104 18143 JRC 31582 b
1own or control, directly or indirectly, one or more of the 2 or 
2more health care facilities or provider organizations that 
3will be under common ownership or contracting affiliation if 
4the transaction is consummated, including if parties to the 
5covered transaction are private equity companies.
6    "Health care facility" means the following facilities,
7organizations, and related persons:
8        (1) An ambulatory surgical treatment center required
9    to be licensed under the Ambulatory Surgical Treatment
10    Center Act.
11        (2) An institution, place, building, or agency
12    required to be licensed under the Hospital Licensing Act.
13        (3) A hospital, ambulatory surgical treatment center,
14    or kidney disease treatment center maintained by the State
15    or any department or agency thereof.
16        (4) A kidney disease treatment center, including a
17    free-standing hemodialysis unit required to meet the
18    requirements of 42 CFR 494 in order to be certified for
19    participation in Medicare and Medicaid under Titles XVIII
20    and XIX of the federal Social Security Act of 1935.
21        (5) An institution, place, building, or room used for
22    the performance of outpatient surgical procedures that is
23    leased, owned, or operated by or on behalf of an
24    out-of-state facility.
25        (6) An institution, place, building, or room used for
26    provision of a health care category of service, as defined
		HB5000 Enrolled	- 8 -	LRB104 18143 JRC 31582 b
1    under the Illinois Health Facilities Planning Act,
2    including, but not limited to, cardiac catheterization and
3    open heart surgery.
4    With the exception of those health care facilities
5specifically included in this Section, nothing in this Section
6shall be intended to include facilities operated as a part of
7the practice of a physician or other licensed health care
8professional, whether practicing in his or her individual
9capacity or within the legal structure of any partnership,
10medical or professional corporation, or unincorporated medical
11or professional group. Further, this Section shall not apply
12to physicians or other licensed health care professional's
13practices where such practices are carried out in a portion of
14a health care facility under contract with such health care
15facility by a physician or by other licensed health care
16professionals, whether practicing in his or her individual
17capacity or within the legal structure of any partnership,
18medical or professional corporation, or unincorporated medical
19or professional groups, unless the entity constructs,
20modifies, or establishes a health care facility as
21specifically defined in this Section.
22    "Health care provider" means an individual or entity duly 
23licensed or legally authorized to provide health care 
24services.
25    "Health care services" means health care services or 
26products rendered or sold by a health care provider within the 
		HB5000 Enrolled	- 9 -	LRB104 18143 JRC 31582 b
1scope of the health care provider's license or legal 
2authorization. The term includes, but is not limited to, 
3hospital, medical, surgical, dental, vision, and 
4pharmaceutical services or products.
5    "Health care services revenue" means the total revenue
6received for health care services in the previous 12 months.
7    "Health carriers" has the meaning given to that term in
8Section 10 of the Health Carrier External Review Act.
9    "Illinois health care entity" means a health care facility
10or provider organization that has an office in or is doing
11business in this State.
12    "Merger" means the consolidation of 2 or more
13organizations, including 2 or more organizations joining
14through a common parent organization or 2 or more
15organizations forming a new organization, but does not include
16a corporate reorganization.
17    "Out-of-state health care entity" means a health care
18facility or provider organization that is not headquartered in
19this State and does not do business in this State.
20    "Private equity company" means any company or partnership 
21that collects capital investments from individuals or entities 
22and purchases, as a parent company, at any level of corporate 
23ownership, or through another entity or entities so that the 
24company completely or partially owns or controls a direct or 
25indirect ownership share of an Illinois health care entity or 
26an out-of-state health care entity that generates $10,000,000 
		HB5000 Enrolled	- 10 -	LRB104 18143 JRC 31582 b
1or more in annual revenue from patients residing in this 
2State.
3    "Provider organization" means a corporation, partnership,
4business trust, association, or organized group of persons,
5whether incorporated or not, which is in the business of
6health care delivery or management and that represents 20 or
7more health care providers in contracting with health carriers
8or third-party administrators for the payment of health care
9services. "Provider organization" includes physician
10organizations, physician-hospital organizations, independent
11practice associations, provider networks, and accountable care
12organizations.
13    "Third-party administrator" means an entity that
14administers payments for health care services on behalf of a
15client in exchange for an administrative fee.
16    (b) Notice of [Health care facilities or provider ]
17[organizations that are party to] a covered transaction shall be 
18provided [provide notice of such transaction] to the Attorney
19General no later than 30 days prior to the transaction closing
20or effective date of the transaction.
21    Notice of a covered transaction [Covered transactions]
22between an Illinois health care entity and an out-of-state
23health care entity shall be provided [must provide notice] under
24this subsection where the out-of-state entity generates
25$10,000,000 or more in annual revenue from patients residing
26in this State.
		HB5000 Enrolled	- 11 -	LRB104 18143 JRC 31582 b
1    (c) The written notice provided by the parties under
2subsection (b) shall be provided as follows:
3        (1) For [any health care facility or provider ]
4    [organization that is a party to] a covered transaction that 
5    is the subject of [and files] a premerger notification
6    filing with the Federal Trade Commission or the United
7    States Department of Justice, in compliance with the
8    Hart-Scott-Rodino Antitrust Improvements Act of 1976, 15
9    U.S.C. 18a, the notice requirement is satisfied by
10    providing a copy of such filing with all attachments to
11    the Attorney General at the same time as it is provided to
12    the federal government.
13        (2) For any health care facility involved in [that is a ]
14    [party to] a covered transaction that is not described in
15    paragraph (1), the notice requirement is satisfied when
16    the healthcare facility files an application for a change
17    of ownership with the Health Facilities and Services
18    Review Board, in compliance with the Illinois Health
19    Facilities Planning Act. The Health Facilities and
20    Services Review Board shall provide a copy of such filing
21    to the Attorney General at the same time as it is provided
22    to the applicable State legislators under subsection (a)
23    of Section 8.5 of the Illinois Health Facilities Planning
24    Act.
25        (3) For any health care facility, [or] provider
26    organization, or any entity that owns or controls, 
		HB5000 Enrolled	- 12 -	LRB104 18143 JRC 31582 b
1    directly or indirectly, a health care facility or provider 
2    organization that is involved in [organization that is a ]
3    [party to] a covered transaction that is not described in
4    paragraph (1) or (2), written notice provided by the
5    parties must include:
6            (A) the names of all health care facilities, 
7        provider organizations involved in the covered 
8        transaction and [parties and] their current business
9        addresses [address];
10            (B) identification of all locations where health
11        care services are currently provided by each entity 
12        disclosed in subparagraph (A) [party];
13            (C) a brief description of the nature and purpose
14        of the proposed transaction; and
15            (D) the anticipated effective date of the proposed
16        transaction.
17    Nothing in this subsection prohibits any entity [the ]
18[parties to a covered transaction] from voluntarily providing
19additional information to the Attorney General.
20    (d) The Attorney General may make any requests for
21additional information from the filing parties that is
22relevant to its investigation of the covered transaction
23within 30 days of the date notice is received under
24subsections (b) and (c). If the Attorney General requests
25additional information, the covered transaction may not
26proceed until 30 days after the filing parties have
		HB5000 Enrolled	- 13 -	LRB104 18143 JRC 31582 b
1substantially complied with the request. Any subsequent
2request for additional information by the Attorney General
3shall not further delay the covered transaction from
4proceeding. Nothing in this Section precludes the Attorney
5General from conducting an investigation or enforcing State or
6federal antitrust laws at a later date.
7    (e) Any party to a covered transaction that [health care ]
8[facility or provider organization that] fails to comply with
9any provision of this Section is subject to a civil penalty of
10not more than $500 per day for each day during which the party
11[health care facility or provider organization] is in violation
12of this Section.
13    Whenever the Attorney General has reason to believe that a
14party to a covered transaction [health care facility or ]
15[provider organization] has engaged in or is engaging in a
16covered transaction without complying with the provisions of
17this Section, the Attorney General may apply for and obtain,
18in an action in the Circuit Court of Sangamon or Cook County, a
19temporary restraining order or injunction, or both,
20prohibiting the party [health care facility or provider ]
21[organization] from continuing its noncompliance or doing any
22act in furtherance thereof. The court may make such further
23orders or judgments, at law or in equity, as may be necessary
24to remedy such noncompliance.
25    Before bringing such an action or seeking to recover a
26civil penalty, the Attorney General shall permit the party to 
		HB5000 Enrolled	- 14 -	LRB104 18143 JRC 31582 b
1the covered transaction [health care facility or provider ]
2[organization] to come into compliance with this Section within
310 days of being notified of its alleged noncompliance. The
4right to cure noncompliance does not exist on or after the
5covered transaction's proposed or actual closing date of the
6covered transaction, whichever is sooner.
7    (f) (Blank). [This Section is repealed on January 1, 2027.]
8(Source: P.A. 103-526, eff. 1-1-24.)
9    (740 ILCS 10/13)
10    (Section scheduled to be repealed on January 1, 2027)
11    Sec. 13. Antitrust Enforcement Fund. Any penalties
12collected from an entity for violations of this Act shall be
13deposited into the Antitrust Enforcement Fund, a special fund
14created in the State treasury that is dedicated to enforcing
15this Act.
16    [This Section is repealed on January 1, 2027.]
17(Source: P.A. 103-526, eff. 1-1-24.)