HOSPITAL FINANCIAL RESOLUTION

Illinois General Assembly - Full Text of HB5589

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HB5589 - 104th General Assembly

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House Amendment 001

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Introduced

House Amendment 001

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5589

Introduced 2/13/2026, by Rep. Robyn Gabel

SYNOPSIS AS INTRODUCED:

5 ILCS 100/5-45.71 new
210 ILCS 85/6.14a
210 ILCS 85/6.14i new
305 ILCS 5/5A-3.1 new

Amends the Hospital Licensing Act. Requires each hospital licensed
under the Act to submit to the Department of Public Health a financial
resolution plan with the specified information for the rapid and orderly
resolution of finances and operations in the event of material financial
distress. Establishes further reporting requirements and penalties.
Includes financial resolution plans in the list of information subject to
disclosure to the public from the Department. Amends the Illinois Public
Aid Code. Sets forth provisions concerning financial reporting
requirements for nonexempt hospitals. Provides that, if a hospital has not
filed the required information within 45 days after the close of the
quarterly reporting period, the Department of Healthcare and Family
Services shall suspend specified authorized payments until the Department
receives the required information. Provides that the Department may adopt
rules, including emergency rules, necessary to implement financial
reporting requirements for nonexempt hospitals. Amends the Illinois
Administrative Procedure Act to authorize emergency rulemaking.
LRB104 20227 BAB 33678 b

A BILL FOR

HB5589
LRB104 20227 BAB 33678 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Administrative Procedure Act is
5
amended by adding Section 5-45.71 as follows:

6

(5 ILCS 100/5-45.71 new)
7

Sec. 5-45.71.
Emergency rulemaking; financial reporting of
8
nonexempt hospitals.
To provide for the expeditious and timely
9
implementation of Section 5A-3.1 of the Illinois Public Aid
10
Code, emergency rules implementing Section 5A-3.1 of the
11
Illinois Public Aid Code may be adopted in accordance with
12
Section 5-45 by the Department of Healthcare and Family
13
Services. The adoption of emergency rules authorized by
14
Section 5-45 and this Section is deemed necessary for the
15
public interest, safety, and welfare.
16

This Section is repealed one year after the effective date
17
of this amendatory Act of the 104th General Assembly.

18

Section 10.
The Hospital Licensing Act is amended by
19
changing Section 6.14a and by adding Section 6.14i as follows:

20

(210 ILCS 85/6.14a)
21

Sec. 6.14a.
Public disclosure of information.
The

HB5589
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LRB104 20227 BAB 33678 b
1
following information is subject to disclosure to the public
2
from the Department:

3

(1) Information submitted under Section 5 of this Act;

4

(2) Final records of license and certification
5

inspections, surveys,
financial resolution plans,
and
6

evaluations of hospitals; and

7

(3) Investigated complaints filed against a hospital
8

and complaint investigation reports, except that a
9

complaint or complaint investigation report shall not be
10

disclosed to a person other than the complainant or
11

complainant's representative before it is disclosed to a
12

hospital, and except that a complainant or patient's name
13

shall not be disclosed.
14

The Department shall disclose information under this
15
Section in accordance with provisions for inspection and
16
copying of public records required by the Freedom of
17
Information Act.
18

However, the disclosure of information described in
19
subsection (1) shall not be restricted by any provision of the
20
Freedom of Information Act.
21

Notwithstanding any other provision of law, under no
22
circumstances shall the Department disclose information
23
obtained from a hospital that is confidential under Part 21 of
24
Article VIII of the Code of Civil Procedure.
25

Any records or reports of inspections, surveys, or
26
evaluations of hospitals may be disclosed only after the

HB5589
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LRB104 20227 BAB 33678 b
1
acceptance of a plan of correction by the Health Care
2
Financing Administration of the U.S. Department of Health and
3
Human Services or the Department, as appropriate, or at the
4
conclusion of any administrative review of the Department's
5
decision, or at the conclusion of any judicial review of such
6
administrative decision. Whenever any record or report is
7
subject to disclosure under this Section, the Department shall
8
permit the hospital to provide a written statement pertaining
9
to such report which shall be included as part of the
10
information to be disclosed. The Department shall not divulge
11
or disclose any record or report in a manner that identifies or
12
would permit the identification of any natural person.
13
(Source: P.A. 98-463, eff. 8-16-13.)

14

(210 ILCS 85/6.14i new)
15

Sec. 6.14i.
Financial resolution plan.
16

(a) Each hospital licensed under this Act shall submit to
17
the Department a financial resolution plan for the rapid and
18
orderly resolution of finances and operations in the event of
19
material financial distress. Each financial resolution plan
20
shall include, but not be limited to, the following
21
information:
22

(1) Full descriptions or organizational charts of the
23

ownership structure, assets, liabilities, and contractual
24

obligations of the hospital.
25

(2) Plans for the safe and orderly transfer and

HB5589
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LRB104 20227 BAB 33678 b
1

continuity of care for patients if there is contemplated
2

or planned closure of at least one category of service or a
3

temporary suspension of such service.
4

(3) Plans for filing or exploring bankruptcy and any
5

dissolution or closure of any category of service or
6

services. Such plans include, but are not limited to,
7

audit reports, operational contingency planning, and other
8

preparations or research.
9

(4) Plans for the orderly preservation and transfer of
10

medical records pursuant to the Medical Patient Rights
11

Act, the Health Insurance Portability and Accountability
12

Act (HIPAA), and other applicable medical privacy laws.
13

(5) Plans to transfer or outplace staff and employees
14

to other hospitals, health care facilities, or entities.
15

Such plans may also include proposed layoffs and
16

downsizing and shall include provisions for the placement
17

of clinical trainees to complete their training.
18

(6) Identification of potential service gaps created
19

due to material financial distress or failure, temporary
20

suspension, discontinuation, or closure.
21

(7) Any other information or data that the Department
22

requests pursuant to its discretion when reviewing the
23

financial resolution plan.
24

(b) Any hospital licensed under this Act shall submit a
25
financial resolution plan described in subsection (a) for each
26
location, campus, or facility administered under the license.

HB5589
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LRB104 20227 BAB 33678 b
1

(c) Each financial resolution plan shall be filed with the
2
Department no later than 6 months after the effective date of
3
this amendatory Act of the 104th General Assembly. Each
4
financial resolution plan, or annual affirmation of a
5
previously filed financial resolution plan, described in this
6
Section shall be submitted on an annual basis as determined by
7
the Department by rule.
8

(d) During the period in which a hospital remains in
9
noncompliance with this Section, the Department may impose
10
fines of not more than $500 per week.

11

Section 15.
The Illinois Public Aid Code is amended by
12
adding Section 5A-3.1 as follows:

13

(305 ILCS 5/5A-3.1 new)
14

Sec. 5A-3.1.
Financial reporting of nonexempt hospitals.
15

(a) The summary financial and utilization data in this
16
Section shall be reported to the Department by a hospital
17
subject to the assessment imposed by this Article within 45
18
days after the end of a calendar quarter. Adjusted reports
19
reflecting changes as a result of audited financial statements
20
may be filed within 4 months after the close of the hospital's
21
fiscal year. The Department shall provide a reporting template
22
to all hospitals that are required to submit such a report. The
23
quarterly summary financial and utilization data shall include
24
all of the following:

HB5589
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LRB104 20227 BAB 33678 b
1

(1) the number of licensed beds.
2

(2) the average number of available beds.
3

(3) the average number of staffed beds.
4

(4) the number of discharges.
5

(5) the number of inpatient days.
6

(6) the number of outpatient visits.
7

(7) Total operating expenses.
8

(8) Total inpatient gross revenues by payor,
9

including, but not limited to, Medicare, Medicaid fee for
10

service, Medicaid managed care, commercial coverage, and
11

other payers.
12

(9) Total outpatient gross revenues by payer,
13

including, but not limited to, Medicare, Medicaid fee for
14

service, Medicaid managed care, commercial coverage, and
15

other payers.
16

(10) the total number of inpatient days, outpatient
17

visits, and discharges by payer, including, but not
18

limited to, Medicare, Medicaid fee for service, Medicaid
19

managed care, commercial coverage and other payers.
20

(11) Total net patient revenues by payer, including,
21

but not limited to, Medicare, Medicaid fee for service,
22

Medicaid managed care, commercial coverage, and other
23

payers.
24

(12) Other operating revenue.
25

(13) Nonoperating revenue net of nonoperating
26

expenses.

HB5589
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LRB104 20227 BAB 33678 b
1

In addition to the information enumerated in paragraphs
2
(1) through (13), each hospital shall submit its most recent
3
audited financial statement along with its submission for the
4
first submission of each calendar year.
5

(b) If a hospital has not filed the required information
6
within 45 days after the close of the quarterly reporting
7
period, the Department shall suspend payments authorized under
8
subsection (r) of Section 5A-12.7 until the Department
9
receives the required information.
10

(c) The Department may adopt rules, including emergency
11
rules, necessary to implement this Section, including rules
12
requesting additional information or removing information from
13
the reporting requirements.

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