HEALTH FACILITIES PLANNING

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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,
3
represented in the General Assembly:

4

Section 5.
The Illinois Health Facilities Planning Act is
5
amended 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(Section scheduled to be repealed on December 31, 2029)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
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

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
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

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
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

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
1
time period any services currently offered by the health care
2
facility.
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
7
category of service is complete and provides the requested
8
information, as specified by the State Board, an exemption
9
shall be issued. No later than 30 days after the issuance of
10
the exemption, the health care facility must give written
11
notice of the discontinuation of the category of service to
12
the State Senator and State Representative serving the
13
legislative district in which the health care facility is
14
located. No later than 90 days after a discontinuation of a
15
category of service, the applicant must submit a statement to
16
the State Board certifying that the discontinuation is
17
complete.
18

(b) If a public hearing is requested, it shall be held at
19
least 15 days but no more than 30 days after the date of
20
publication of the legal notice in the community in which the
21
facility is located. The hearing shall be held in the affected
22
area or community in a place of reasonable size and
23
accessibility and a full and complete written transcript of
24
the proceedings shall be made. All interested persons
25
attending the hearing shall be given a reasonable opportunity
26
to present their positions in writing or orally. The applicant

HB5000 Enrolled
- 5 -
LRB104 18143 JRC 31582 b
1
shall provide a summary or describe the proposed change of
2
ownership at the public hearing.
3

(c) For the purposes of this Section "newspaper of limited
4
circulation" means a newspaper intended to serve a particular
5
or defined population of a specific geographic area within a
6
Metropolitan Statistical Area such as a municipality, town,
7
village, township, or community area, but does not include
8
publications of professional and trade associations.
9

(d) The changes made to this Section by this amendatory
10
Act of the 101st General Assembly shall apply to all
11
applications submitted after the effective date of this
12
amendatory 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
15
Section 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
22
changing Sections 7.2a and 13 as follows:

HB5000 Enrolled
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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
6
the consummation of which results in a person acquiring
7
directly or indirectly the control of another person.
8
"Acquisition" includes the acquisition of voting securities
9
and noncorporate interests, such as assets, capital stock,
10
membership interests, or equity interests.
11

"Contracting affiliation" means the formation of a
12
relationship between 2 or more entities that permits the
13
entities to negotiate jointly with health carriers or
14
third-party administrators over rates for professional medical
15
services, or for one entity to negotiate on behalf of the other
16
entity with health carriers or third-party administrators over
17
rates for professional medical services. "Contracting
18
affiliation" does not include arrangements among entities
19
under common ownership.
20

"Covered transaction" means any merger, acquisition, or
21
contracting affiliation
involving

between
2 or more health
22
care facilities
,

or
provider organizations not previously
23
under common ownership or contracting affiliation.
A
24
transaction is a "covered transaction" subject to the notice
25
requirements even if the parties to the transaction are not
26
themselves a health care facility or provider organization but

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
1
own or control, directly or indirectly, one or more of the 2 or
2
more health care facilities or provider organizations that
3
will be under common ownership or contracting affiliation if
4
the transaction is consummated, including if parties to the
5
covered transaction are private equity companies.

6

"Health care facility" means the following facilities,
7
organizations, 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
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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
5
specifically included in this Section, nothing in this Section
6
shall be intended to include facilities operated as a part of
7
the practice of a physician or other licensed health care
8
professional, whether practicing in his or her individual
9
capacity or within the legal structure of any partnership,
10
medical or professional corporation, or unincorporated medical
11
or professional group. Further, this Section shall not apply
12
to physicians or other licensed health care professional's
13
practices where such practices are carried out in a portion of
14
a health care facility under contract with such health care
15
facility by a physician or by other licensed health care
16
professionals, whether practicing in his or her individual
17
capacity or within the legal structure of any partnership,
18
medical or professional corporation, or unincorporated medical
19
or professional groups, unless the entity constructs,
20
modifies, or establishes a health care facility as
21
specifically defined in this Section.
22

"Health care provider" means an individual or entity duly
23
licensed or legally authorized to provide health care
24
services.
25

"Health care services" means health care services or
26
products rendered or sold by a health care provider within the

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
1
scope of the health care provider's license or legal
2
authorization. The term includes, but is not limited to,
3
hospital, medical, surgical, dental, vision, and
4
pharmaceutical services or products.

5

"Health care services revenue" means the total revenue
6
received for health care services in the previous 12 months.
7

"Health carriers" has the meaning given to that term in
8
Section 10 of the Health Carrier External Review Act.
9

"Illinois health care entity" means a health care facility
10
or provider organization that has an office in or is doing
11
business in this State.
12

"Merger" means the consolidation of 2 or more
13
organizations, including 2 or more organizations joining
14
through a common parent organization or 2 or more
15
organizations forming a new organization, but does not include
16
a corporate reorganization.
17

"Out-of-state health care entity" means a health care
18
facility or provider organization that is not headquartered in
19
this State and does not do business in this State.
20

"Private equity company" means any company or partnership
21
that collects capital investments from individuals or entities
22
and purchases, as a parent company, at any level of corporate
23
ownership, or through another entity or entities so that the
24
company completely or partially owns or controls a direct or
25
indirect ownership share of an Illinois health care entity or
26
an out-of-state health care entity that generates $10,000,000

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
1
or more in annual revenue from patients residing in this
2
State.

3

"Provider organization" means a corporation, partnership,
4
business trust, association, or organized group of persons,
5
whether incorporated or not, which is in the business of
6
health care delivery or management and that represents 20 or
7
more health care providers in contracting with health carriers
8
or third-party administrators for the payment of health care
9
services. "Provider organization" includes physician
10
organizations, physician-hospital organizations, independent
11
practice associations, provider networks, and accountable care
12
organizations.
13

"Third-party administrator" means an entity that
14
administers payments for health care services on behalf of a
15
client 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
18
provided

provide notice of such transaction
to the Attorney
19
General no later than 30 days prior to the transaction closing
20
or effective date of the transaction.
21

Notice of a covered transaction

Covered transactions

22
between an Illinois health care entity and an out-of-state
23
health care entity
shall be provided

must provide notice
under
24
this subsection where the out-of-state entity generates
25
$10,000,000 or more in annual revenue from patients residing
26
in this State.

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
1

(c) The written notice provided by the parties under
2
subsection (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
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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
19
additional information to the Attorney General.
20

(d) The Attorney General may make any requests for
21
additional information from the
filing
parties that is
22
relevant to its investigation of the covered transaction
23
within 30 days of the date notice is received under
24
subsections (b) and (c). If the Attorney General requests
25
additional information, the covered transaction may not
26
proceed until 30 days after the
filing
parties have

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
1
substantially complied with the request. Any subsequent
2
request for additional information by the Attorney General
3
shall not further delay the covered transaction from
4
proceeding. Nothing in this Section precludes the Attorney
5
General from conducting an investigation or enforcing State or
6
federal 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
9
any provision of this Section is subject to a civil penalty of
10
not more than $500 per day for each day during which the
party

11
health care facility or provider organization
is in violation
12
of this Section.
13

Whenever the Attorney General has reason to believe that a
14
party to a covered transaction

health care facility or
15
provider organization
has engaged in or is engaging in a
16
covered transaction without complying with the provisions of
17
this Section, the Attorney General may apply for and obtain,
18
in an action in the Circuit Court of Sangamon or Cook County, a
19
temporary restraining order or injunction, or both,
20
prohibiting the
party

health care facility or provider
21
organization
from continuing its noncompliance or doing any
22
act in furtherance thereof. The court may make such further
23
orders or judgments, at law or in equity, as may be necessary
24
to remedy such noncompliance.
25

Before bringing such an action or seeking to recover a
26
civil penalty, the Attorney General shall permit the
party to

HB5000 Enrolled
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LRB104 18143 JRC 31582 b
1
the covered transaction

health care facility or provider
2
organization
to come into compliance with this Section within
3
10 days of being notified of its alleged noncompliance. The
4
right to cure noncompliance does not exist on or after the
5
covered transaction's proposed or actual closing date of the
6
covered 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
12
collected from an entity for violations of this Act shall be
13
deposited into the Antitrust Enforcement Fund, a special fund
14
created in the State treasury that is dedicated to enforcing
15
this Act.
16

This Section is repealed on January 1, 2027.
17
(Source: P.A. 103-526, eff. 1-1-24
.)

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