77 Ill. Adm. Code 1130.520
Requirements for Exemptions Involving the Change of Ownership of a Health Care Facility
Section 1130
Section 1130.520
Requirements for Exemptions Involving the Change of Ownership of a Health Care
Facility
a) Submission
of Application for Exemption
Prior to
acquiring or entering into a contract to acquire an existing health care
facility, a person shall submit an application for exemption to HFSRB, submit
the required application-processing fee (see Section 1130.230) and receive
approval from HFSRB.
b) Application
for Exemption
The application for exemption is
subject to approval under Section 1130.560 and shall include the information
required by Section 1130.500 and the following information:
1)
Key terms of the
transaction,
including the:
A)
names
of the parties;
B)
background
of the parties,
which shall include proof that the applicant is fit,
willing, able, and has the qualifications, background and character to
adequately provide a proper standard of health service for the community by
certifying that no adverse action has been taken against the applicant by the
federal government, licensing or certifying bodies, or any other agency of the
State of Illinois against any health care facility owned or operated by the
applicant, directly or indirectly, within three years preceding the filing of
the application;
C)
structure
of the transaction;
D) name
of
the person who will be the licensed or certified entity after the
transaction;
E) list
of
the ownership or membership interests in such licensed or certified
entity both prior to and after the transaction,
including a description of
the applicant's organizational structure with a listing of controlling or
subsidiary persons
;
F)
fair
market value of assets to be transferred; and
G)
the
purchase price or other forms of consideration to be provided for those assets.
[20 ILCS 3960/8.5(a)]
HFSRB NOTE: If the transaction is
not completed according to the key terms submitted in the exemption application,
a new application is required.
2) affirmation
that any projects for which permits have been issued have been completed or
will be completed or altered in accordance with the provisions of this Section;
3) if
the ownership change is for a hospital, affirmation that the facility will not
adopt a more restrictive charity care policy than the policy that was in effect
one year prior to the transaction. The hospital must provide affirmation that
the compliant charity care policy will remain in effect for a two-year period
following the change of ownership transaction;
4) a statement as to the anticipated benefits of the proposed
changes in ownership to the community;
5) the anticipated or potential cost savings, if any, that will
result for the community and the facility because of the change in ownership;
6) a description of the facility's quality improvement program
mechanism that will be utilized to assure quality control;
7) a description of the selection process that the acquiring
entity will use to select the facility's governing body;
8) a statement that the applicant has prepared a written response
addressing the review criteria contained in 77 Ill. Adm. Code 1110.240 and that
the response is available for public review on the premises of the health care
facility; and
9) a description or summary of any proposed changes to the scope
of services or levels of care currently provided at the facility that are
anticipated to occur within 24 months after acquisition.
c) Application
for Exemption Among Related Persons
When
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 the 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.
[20 ILCS
3960/8.5(a)]
d) Opportunity
for Public Hearing
Upon a
finding
by HFSRB staff
that an application for a change of ownership is
complete,
the State Board staff
shall publish a legal notice on one
day
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. The applicant shall pay
the cost incurred by the Board in publishing the change of ownership notice in
the newspaper as required under this subsection. The legal notice shall also
be posted on
Health Facilities and Services Review Board web site and
sent to the State Representative and State Senator of the district in which the
health care facility is located.
[20 ILCS 3960/8.5(a)] This legal notice
shall provide the following:
1) Name of
applicants and addresses;
2) Name of
facility and address;
3) Description
of the proposed project and estimated total cost;
4) Notice
of request for public hearing;
5) Notice
of tentative HFSRB meeting and location; and
6) Notice
of tentative release of the State Board Staff Report and the time to comment on
the State Board Staff Report. See HFSRB website (www.hfsrb.illinois.gov).
e) Completion of Projects with Outstanding Permits
1) A
permit or exemption cannot be transferred.
2)
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.
(see 20 ILCS
3960/6(b).)
3) If the requirements of this subsection (e) are not met, any
outstanding permit will be considered a transfer of the permit and results in
the permit being null and void.