HB2076 EnrolledLRB103 27114 CPF 53482 b HB2076 Enrolled LRB103 27114 CPF 53482 b HB2076 Enrolled LRB103 27114 CPF 53482 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 Nursing Home Care Act is amended by 5 changing Section 3-304.2 as follows: 6 (210 ILCS 45/3-304.2) 7 Sec. 3-304.2. Designation of distressed facilities. 8 (a) (Blank). By May 1, 2011, and quarterly thereafter, the 9 Department shall generate and publish quarterly a list of 10 distressed facilities. Criteria for inclusion of certified 11 facilities on the list shall be those used by the U.S. General 12 Accounting Office in report 9-689, until such time as the 13 Department by rule modifies the criteria. 14 (b) (Blank). In deciding whether and how to modify the 15 criteria used by the General Accounting Office, the Department 16 shall complete a test run of any substitute criteria to 17 determine their reliability by comparing the number of 18 facilities identified as distressed against the number of 19 distressed facilities generated using the criteria contained 20 in the General Accounting Office report. The Department may 21 not adopt substitute criteria that generate fewer facilities 22 with a distressed designation than are produced by the General 23 Accounting Office criteria during the test run. HB2076 Enrolled LRB103 27114 CPF 53482 b HB2076 Enrolled- 2 -LRB103 27114 CPF 53482 b HB2076 Enrolled - 2 - LRB103 27114 CPF 53482 b HB2076 Enrolled - 2 - LRB103 27114 CPF 53482 b 1 (b-5) The Department shall, by rule, adopt criteria to 2 identify distressed facilities and shall publish a list of 3 distressed facilities quarterly. The Department shall, by 4 rule, create a timeframe and a procedure on how a facility can 5 be removed from the list. No facility shall be identified as a 6 distressed facility unless it has committed a violation or 7 deficiency that has harmed a resident. 8 (c) The Department shall, by rule, adopt criteria to 9 identify non-Medicaid-certified facilities that are distressed 10 and shall publish this list quarterly. The list may not 11 contain more than 40 facilities per quarter beginning October 12 1, 2011. 13 (d) The Department shall notify each facility of its 14 distressed designation, and of the calculation on which it is 15 based. A facility has the right to appeal a designation, and 16 the procedure for appealing shall be outlined in rule. 17 (e) A distressed facility may contract with an independent 18 consultant meeting criteria established by the Department. If 19 the distressed facility does not seek the assistance of an 20 independent consultant, the Department shall place a monitor 21 or a temporary manager in the facility, depending on the 22 Department's assessment of the condition of the facility. 23 (f) Independent consultant. A facility that has been 24 designated a distressed facility may contract with an 25 independent consultant to develop and assist in the 26 implementation of a plan of improvement to bring and keep the HB2076 Enrolled - 2 - LRB103 27114 CPF 53482 b HB2076 Enrolled- 3 -LRB103 27114 CPF 53482 b HB2076 Enrolled - 3 - LRB103 27114 CPF 53482 b HB2076 Enrolled - 3 - LRB103 27114 CPF 53482 b 1 facility in compliance with this Act and, if applicable, with 2 federal certification requirements. A facility that contracts 3 with an independent consultant shall have 90 days to develop a 4 plan of improvement and demonstrate a good faith effort at 5 implementation, and another 90 days to achieve compliance and 6 take whatever additional actions are called for in the 7 improvement plan to maintain compliance. A facility that the 8 Department determines has a plan of improvement likely to 9 bring and keep the facility in compliance and that has 10 demonstrated good faith efforts at implementation within the 11 first 90 days may be eligible to receive a grant under the 12 Equity in Long-term Care Quality Act to assist it in achieving 13 and maintaining compliance. In this subsection, "independent" 14 consultant means an individual who has no professional or 15 financial relationship with the facility, any person with a 16 reportable ownership interest in the facility, or any related 17 parties. In this subsection, "related parties" has the meaning 18 attributed to it in the instructions for completing Medicaid 19 cost reports. 20 (f-5) Monitor and temporary managers. A distressed 21 facility that does not contract with a consultant shall be 22 assigned a monitor or a temporary manager at the Department's 23 discretion. The monitor cost of the temporary manager shall be 24 paid by the facility. The temporary manager shall have the 25 authority determined by the Department, which may grant the 26 temporary manager any or all of the authority a court may grant HB2076 Enrolled - 3 - LRB103 27114 CPF 53482 b HB2076 Enrolled- 4 -LRB103 27114 CPF 53482 b HB2076 Enrolled - 4 - LRB103 27114 CPF 53482 b HB2076 Enrolled - 4 - LRB103 27114 CPF 53482 b 1 a receiver. The temporary manager may apply to the Equity in 2 Long-term Care Quality Fund on behalf of the facility for 3 grant funds to implement the plan of improvement. 4 (g) The Department shall, by rule, establish a mentor 5 program for owners and operators of distressed facilities. The 6 mentor program shall provide technical assistance and guidance 7 to facilities. 8 (h) The Department shall by rule establish sanctions (in 9 addition to those authorized elsewhere in this Article) 10 against distressed facilities that are not in compliance with 11 this Act and (if applicable) with federal certification 12 requirements. Criteria for imposing sanctions shall take into 13 account a facility's actions to address the violations and 14 deficiencies that caused its designation as a distressed 15 facility, and its compliance with this Act and with federal 16 certification requirements (if applicable), subsequent to its 17 designation as a distressed facility, including mandatory 18 revocations if criteria can be agreed upon by the Department, 19 resident advocates, and representatives of the nursing home 20 profession. By February 1, 2011, the Department shall report 21 to the General Assembly on the results of negotiations about 22 creating criteria for mandatory license revocations of 23 distressed facilities and make recommendations about any 24 statutory changes it believes are appropriate to protect the 25 health, safety, and welfare of nursing home residents. 26 (i) The Department may establish, by rule, criteria for HB2076 Enrolled - 4 - LRB103 27114 CPF 53482 b HB2076 Enrolled- 5 -LRB103 27114 CPF 53482 b HB2076 Enrolled - 5 - LRB103 27114 CPF 53482 b HB2076 Enrolled - 5 - LRB103 27114 CPF 53482 b 1 restricting an owner of a facility from acquiring additional 2 nursing facilities if the owner of a facility was placed on the 3 distressed list while it was owned by that owner from 4 acquiring additional skilled nursing facilities. The 5 Department may not prohibit an owner who acquires ownership of 6 a facility that is already on the distressed facility list 7 before the owner's acquisition of the facility from acquiring 8 additional skilled nursing facilities. 9 (j) This Section does not apply to homes, institutions, or 10 other places operated by or under the authority of the 11 Illinois Department of Veterans' Affairs as these facilities 12 are certified by the United States Department of Veterans 13 Affairs and not the Centers for Medicare and Medicaid 14 Services. 15 (Source: P.A. 96-1372, eff. 7-29-10; 97-813, eff. 7-13-12.) HB2076 Enrolled - 5 - LRB103 27114 CPF 53482 b