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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3055

Introduced 1/28/2026, by Sen. Neil Anderson

SYNOPSIS AS INTRODUCED:

210 ILCS 85/10.8

Amends the Hospital Licensing Act. In the definition of "professional
judgment", removes language providing that situations in which an
employing entity does not interfere with an employed physician's
professional judgment includes reasonable referral restrictions that do
not, in the reasonable professional judgment of the physician, adversely
affect the health or welfare of the patient. Effective immediately.
LRB104 19520 BAB 32968 b

A BILL FOR

SB3055
LRB104 19520 BAB 32968 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 Hospital Licensing Act is amended by
5
changing Section 10.8 as follows:

6

(210 ILCS 85/10.8)
7

Sec. 10.8.
Requirements for employment of physicians.
8

(a) Physician employment by hospitals and hospital
9
affiliates. Employing entities may employ physicians to
10
practice medicine in all of its branches provided that the
11
following requirements are met:
12

(1) The employed physician is a member of the medical
13

staff of either the hospital or hospital affiliate. If a
14

hospital affiliate decides to have a medical staff, its
15

medical staff shall be organized in accordance with
16

written bylaws where the affiliate medical staff is
17

responsible for making recommendations to the governing
18

body of the affiliate regarding all quality assurance
19

activities and safeguarding professional autonomy. The
20

affiliate medical staff bylaws may not be unilaterally
21

changed by the governing body of the affiliate. Nothing in
22

this Section requires hospital affiliates to have a
23

medical staff.

SB3055
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LRB104 19520 BAB 32968 b
1

(2) Independent physicians, who are not employed by an
2

employing entity, periodically review the quality of the
3

medical services provided by the employed physician to
4

continuously improve patient care.
5

(3) The employing entity and the employed physician
6

sign a statement acknowledging that the employer shall not
7

unreasonably exercise control, direct, or interfere with
8

the employed physician's exercise and execution of his or
9

her professional judgment in a manner that adversely
10

affects the employed physician's ability to provide
11

quality care to patients. This signed statement shall take
12

the form of a provision in the physician's employment
13

contract or a separate signed document from the employing
14

entity to the employed physician. This statement shall
15

state: "As the employer of a physician, (employer's name)
16

shall not unreasonably exercise control, direct, or
17

interfere with the employed physician's exercise and
18

execution of his or her professional judgment in a manner
19

that adversely affects the employed physician's ability to
20

provide quality care to patients."
21

(4) The employing entity shall establish a mutually
22

agreed upon independent review process with criteria under
23

which an employed physician may seek review of the alleged
24

violation of this Section by physicians who are not
25

employed by the employing entity. The affiliate may
26

arrange with the hospital medical staff to conduct these

SB3055
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LRB104 19520 BAB 32968 b
1

reviews. The independent physicians shall make findings
2

and recommendations to the employing entity and the
3

employed physician within 30 days of the conclusion of the
4

gathering of the relevant information.
5

(b) Definitions. For the purpose of this Section:
6

"Employing entity" means a hospital licensed under the
7
Hospital Licensing Act or a hospital affiliate.
8

"Employed physician" means a physician who receives an IRS
9
W-2 form, or any successor federal income tax form, from an
10
employing entity.
11

"Hospital" means a hospital licensed under the Hospital
12
Licensing Act, except county hospitals as defined in
13
subsection (c) of Section 15-1 of the Illinois Public Aid
14
Code.
15

"Hospital affiliate" means a corporation, partnership,
16
joint venture, limited liability company, or similar
17
organization, other than a hospital, that is devoted primarily
18
to the provision, management, or support of health care
19
services and that directly or indirectly controls, is
20
controlled by, or is under common control of the hospital.
21
"Control" means having at least an equal or a majority
22
ownership or membership interest. A hospital affiliate shall
23
be 100% owned or controlled by any combination of hospitals,
24
their parent corporations, or physicians licensed to practice
25
medicine in all its branches in Illinois. "Hospital affiliate"
26
does not include a health maintenance organization regulated

SB3055
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LRB104 19520 BAB 32968 b
1
under the Health Maintenance Organization Act.
2

"Physician" means an individual licensed to practice
3
medicine in all its branches in Illinois.
4

"Professional judgment" means the exercise of a
5
physician's independent clinical judgment in providing
6
medically appropriate diagnoses, care, and treatment to a
7
particular patient at a particular time. Situations in which
8
an employing entity does not interfere with an employed
9
physician's professional judgment include, without limitation,
10
the following:
11

(1) practice restrictions based upon peer review of
12

the physician's clinical practice to assess quality of
13

care and utilization of resources in accordance with
14

applicable bylaws;
15

(2) supervision of physicians by appropriately
16

licensed medical directors, medical school faculty,
17

department chairpersons or directors, or supervising
18

physicians;
and

19

(3) written statements of ethical or religious
20

directives
.

; and
21

(4) reasonable referral restrictions that do not, in
22

the reasonable professional judgment of the physician,
23

adversely affect the health or welfare of the patient.
24

(c) Private enforcement. An employed physician aggrieved
25
by a violation of this Act may seek to obtain an injunction or
26
reinstatement of employment with the employing entity as the

SB3055
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LRB104 19520 BAB 32968 b
1
court may deem appropriate. Nothing in this Section limits or
2
abrogates any common law cause of action. Nothing in this
3
Section shall be deemed to alter the law of negligence.
4

(d) Department enforcement. The Department may enforce the
5
provisions of this Section, but nothing in this Section shall
6
require or permit the Department to license, certify, or
7
otherwise investigate the activities of a hospital affiliate
8
not otherwise required to be licensed by the Department.
9

(e) Retaliation prohibited. No employing entity shall
10
retaliate against any employed physician for requesting a
11
hearing or review under this Section. No action may be taken
12
that affects the ability of a physician to practice during
13
this review, except in circumstances where the medical staff
14
bylaws authorize summary suspension.
15

(f) Physician collaboration. No employing entity shall
16
adopt or enforce, either formally or informally, any policy,
17
rule, regulation, or practice inconsistent with the provision
18
of adequate collaboration, including medical direction of
19
licensed advanced practice registered nurses or supervision of
20
licensed physician assistants and delegation to other
21
personnel under Section 54.5 of the Medical Practice Act of
22
1987.
23

(g) Physician disciplinary actions. Nothing in this
24
Section shall be construed to limit or prohibit the governing
25
body of an employing entity or its medical staff, if any, from
26
taking disciplinary actions against a physician as permitted

SB3055
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LRB104 19520 BAB 32968 b
1
by law.
2

(h) Physician review. Nothing in this Section shall be
3
construed to prohibit a hospital or hospital affiliate from
4
making a determination not to pay for a particular health care
5
service or to prohibit a medical group, independent practice
6
association, hospital medical staff, or hospital governing
7
body from enforcing reasonable peer review or utilization
8
review protocols or determining whether the employed physician
9
complied with those protocols.
10

(i) Review. Nothing in this Section may be used or
11
construed to establish that any activity of a hospital or
12
hospital affiliate is subject to review under the Illinois
13
Health Facilities Planning Act.
14

(j) Rules. The Department shall adopt any rules necessary
15
to implement this Section.
16
(Source: P.A. 100-201, eff. 8-18-17; 100-513, eff. 1-1-18
.)

17

Section 99.
Effective date.
This Act takes effect upon
18
becoming law.

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