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
onedayin 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 onHealth 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.
