HB4907 EnrolledLRB103 38362 CES 68497 b HB4907 Enrolled LRB103 38362 CES 68497 b HB4907 Enrolled LRB103 38362 CES 68497 b 1 AN ACT concerning health. 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 4.5 as follows: 6 (210 ILCS 85/4.5) 7 Sec. 4.5. Hospital with multiple locations; single 8 license. 9 (a) A hospital located in a county with fewer than 10 3,000,000 inhabitants may apply to the Department for approval 11 to conduct its operations from more than one location within 12 the county under a single license. At the time of the 13 application to operate under a single license, a hospital 14 located in a county with fewer than 125,000 inhabitants may 15 apply to the Department for approval to conduct its operations 16 from more than one location within contiguous counties in 17 which both facilities are located, provided that the second 18 county has fewer than 235,000 35,000 inhabitants. 19 (b) The facilities or buildings at those locations must be 20 owned or operated together by a single corporation or other 21 legal entity serving as the licensee and must share: 22 (1) a single board of directors with responsibility 23 for governance, including financial oversight and the HB4907 Enrolled LRB103 38362 CES 68497 b HB4907 Enrolled- 2 -LRB103 38362 CES 68497 b HB4907 Enrolled - 2 - LRB103 38362 CES 68497 b HB4907 Enrolled - 2 - LRB103 38362 CES 68497 b 1 authority to designate or remove the chief executive 2 officer; 3 (2) a single medical staff accountable to the board of 4 directors and governed by a single set of medical staff 5 bylaws, rules, and regulations with responsibility for the 6 quality of the medical services; and 7 (3) a single chief executive officer, accountable to 8 the board of directors, with management responsibility. 9 (c) Each hospital building or facility that is located on 10 a site geographically separate from the campus or premises of 11 another hospital building or facility operated by the licensee 12 must, at a minimum, individually comply with the Department's 13 hospital licensing requirements for emergency services. 14 (d) The hospital shall submit to the Department a 15 comprehensive plan in relation to the waiver or waivers 16 requested describing the services and operations of each 17 facility or building and how common services or operations 18 will be coordinated between the various locations. With the 19 exception of items required by subsection (c), the Department 20 is authorized to waive compliance with the hospital licensing 21 requirements for specific buildings or facilities, provided 22 that the hospital has documented which other building or 23 facility under its single license provides that service or 24 operation, and that doing so would not endanger the public's 25 health, safety, or welfare. Nothing in this Section relieves a 26 hospital from the requirements of the Health Facilities HB4907 Enrolled - 2 - LRB103 38362 CES 68497 b HB4907 Enrolled- 3 -LRB103 38362 CES 68497 b HB4907 Enrolled - 3 - LRB103 38362 CES 68497 b HB4907 Enrolled - 3 - LRB103 38362 CES 68497 b 1 Planning Act. 2 (Source: P.A. 102-887, eff. 5-17-22.) 3 Section 10. The Illinois Public Aid Code is amended by 4 changing Section 5-5.2 as follows: 5 (305 ILCS 5/5-5.2) 6 Sec. 5-5.2. Payment. 7 (a) All nursing facilities that are grouped pursuant to 8 Section 5-5.1 of this Act shall receive the same rate of 9 payment for similar services. 10 (b) It shall be a matter of State policy that the Illinois 11 Department shall utilize a uniform billing cycle throughout 12 the State for the long-term care providers. 13 (c) (Blank). 14 (c-1) Notwithstanding any other provisions of this Code, 15 the methodologies for reimbursement of nursing services as 16 provided under this Article shall no longer be applicable for 17 bills payable for nursing services rendered on or after a new 18 reimbursement system based on the Patient Driven Payment Model 19 (PDPM) has been fully operationalized, which shall take effect 20 for services provided on or after the implementation of the 21 PDPM reimbursement system begins. For the purposes of Public 22 Act 102-1035, the implementation date of the PDPM 23 reimbursement system and all related provisions shall be July 24 1, 2022 if the following conditions are met: (i) the Centers HB4907 Enrolled - 3 - LRB103 38362 CES 68497 b HB4907 Enrolled- 4 -LRB103 38362 CES 68497 b HB4907 Enrolled - 4 - LRB103 38362 CES 68497 b HB4907 Enrolled - 4 - LRB103 38362 CES 68497 b 1 for Medicare and Medicaid Services has approved corresponding 2 changes in the reimbursement system and bed assessment; and 3 (ii) the Department has filed rules to implement these changes 4 no later than June 1, 2022. Failure of the Department to file 5 rules to implement the changes provided in Public Act 102-1035 6 no later than June 1, 2022 shall result in the implementation 7 date being delayed to October 1, 2022. 8 (d) The new nursing services reimbursement methodology 9 utilizing the Patient Driven Payment Model, which shall be 10 referred to as the PDPM reimbursement system, taking effect 11 July 1, 2022, upon federal approval by the Centers for 12 Medicare and Medicaid Services, shall be based on the 13 following: 14 (1) The methodology shall be resident-centered, 15 facility-specific, cost-based, and based on guidance from 16 the Centers for Medicare and Medicaid Services. 17 (2) Costs shall be annually rebased and case mix index 18 quarterly updated. The nursing services methodology will 19 be assigned to the Medicaid enrolled residents on record 20 as of 30 days prior to the beginning of the rate period in 21 the Department's Medicaid Management Information System 22 (MMIS) as present on the last day of the second quarter 23 preceding the rate period based upon the Assessment 24 Reference Date of the Minimum Data Set (MDS). 25 (3) Regional wage adjustors based on the Health 26 Service Areas (HSA) groupings and adjusters in effect on HB4907 Enrolled - 4 - LRB103 38362 CES 68497 b HB4907 Enrolled- 5 -LRB103 38362 CES 68497 b HB4907 Enrolled - 5 - LRB103 38362 CES 68497 b HB4907 Enrolled - 5 - LRB103 38362 CES 68497 b 1 April 30, 2012 shall be included, except no adjuster shall 2 be lower than 1.06. 3 (4) PDPM nursing case mix indices in effect on March 4 1, 2022 shall be assigned to each resident class at no less 5 than 0.7858 of the Centers for Medicare and Medicaid 6 Services PDPM unadjusted case mix values, in effect on 7 March 1, 2022. 8 (5) The pool of funds available for distribution by 9 case mix and the base facility rate shall be determined 10 using the formula contained in subsection (d-1). 11 (6) The Department shall establish a variable per diem 12 staffing add-on in accordance with the most recent 13 available federal staffing report, currently the Payroll 14 Based Journal, for the same period of time, and if 15 applicable adjusted for acuity using the same quarter's 16 MDS. The Department shall rely on Payroll Based Journals 17 provided to the Department of Public Health to make a 18 determination of non-submission. If the Department is 19 notified by a facility of missing or inaccurate Payroll 20 Based Journal data or an incorrect calculation of 21 staffing, the Department must make a correction as soon as 22 the error is verified for the applicable quarter. 23 Beginning October 1, 2024, the staffing percentage 24 used in the calculation of the per diem staffing add-on 25 shall be its PDPM STRIVE Staffing Ratio which equals: its 26 Reported Total Nurse Staffing Hours Per Resident Per Day HB4907 Enrolled - 5 - LRB103 38362 CES 68497 b HB4907 Enrolled- 6 -LRB103 38362 CES 68497 b HB4907 Enrolled - 6 - LRB103 38362 CES 68497 b HB4907 Enrolled - 6 - LRB103 38362 CES 68497 b 1 as published in the most recent federal staffing report 2 (the Provider Information File), divided by the facility's 3 PDPM STRIVE Staffing Target. Each facility's PDPM STRIVE 4 Staffing Target is equal to .82 times the facility's 5 Illinois Adjusted Facility Case-Mix Hours Per Resident Per 6 Day. A facility's Illinois Adjusted Facility Case Mix 7 Hours Per Resident Per Day is equal to its Case-Mix Total 8 Nurse Staffing Hours Per Resident Per Day (as published in 9 the most recent federal Provider Information file staffing 10 report) times 3.662 (which reflects the national resident 11 days-weighted mean Reported Total Nurse Staffing Hours Per 12 Resident Per Day as calculated using the January 2024 13 federal Provider Information Files), divided by the 14 national resident days-weighted mean Reported Total Nurse 15 Staffing Hours Per Resident Per Day calculated using the 16 most recent State US Averages file federal Provider 17 Information File. 18 Beginning January 1, 2025, the staffing percentage 19 used in the calculation of the per diem staffing add-on 20 shall be its PDPM STRIVE Staffing Ratio which equals: its 21 Reported Total Nurse Staffing Hours Per Resident Per Day 22 as published in the most recent federal staffing report 23 (the Provider Information File), divided by the facility's 24 PDPM STRIVE Staffing Target. Each facility's PDPM STRIVE 25 Staffing Target is equal to .7122 times the facility's 26 Illinois Adjusted Facility Case-Mix Hours Per Resident Per HB4907 Enrolled - 6 - LRB103 38362 CES 68497 b HB4907 Enrolled- 7 -LRB103 38362 CES 68497 b HB4907 Enrolled - 7 - LRB103 38362 CES 68497 b HB4907 Enrolled - 7 - LRB103 38362 CES 68497 b 1 Day. A facility's Illinois Adjusted Facility Case Mix 2 Hours Per Resident Per Day is equal to its Case-Mix Total 3 Nurse Staffing Hours Per Resident Per Day (as published in 4 the most recent federal staffing report Provider 5 Information file) times 3.79 (which is the Reported Total 6 Nurse Staffing Hours Per Resident Per Day for the Nation 7 as reported the January 2024 State US Averages file), 8 divided by the Reported Total Nurse Staffing Hours Per 9 Resident Per Day for the Nation as reported in the most 10 recent State US Averages file. 11 (6.5) Beginning July 1, 2024, the paid per diem 12 staffing add-on shall be the paid per diem staffing add-on 13 in effect April 1, 2024. For dates beginning October 1, 14 2024 and through September 30, 2025, the denominator for 15 the staffing percentage shall be the lesser of the 16 facility's PDPM STRIVE Staffing Target and: 17 (A) For the quarter beginning October 1, 2024, the 18 sum of 20% of the facility's PDPM STRIVE Staffing 19 Target and 80% of the facility's Case-Mix Total Nurse 20 Staffing Hours Per Resident Per Day (as published in 21 the January 2024 federal staffing report). 22 (B) For the quarter beginning January 1, 2025, the 23 sum of 40% of the facility's PDPM STRIVE Staffing 24 Target and 60% of the facility's Case-Mix Total Nurse 25 Staffing Hours Per Resident Per Day (as published in 26 the January 2024 federal staffing report). HB4907 Enrolled - 7 - LRB103 38362 CES 68497 b HB4907 Enrolled- 8 -LRB103 38362 CES 68497 b HB4907 Enrolled - 8 - LRB103 38362 CES 68497 b HB4907 Enrolled - 8 - LRB103 38362 CES 68497 b 1 (C) For the quarter beginning March 1, 2025, the 2 sum of 60% of the facility's PDPM STRIVE Staffing 3 Target and 40% of the facility's Case-Mix Total Nurse 4 Staffing Hours Per Resident Per Day (as published in 5 the January 2024 federal staffing report). 6 (D) For the quarter beginning July 1, 2025, the 7 sum of 80% of the facility's PDPM STRIVE Staffing 8 Target and 20% of the facility's Case-Mix Total Nurse 9 Staffing Hours Per Resident Per Day (as published in 10 the January 2024 federal staffing report). 11 Facilities with at least 70% of the staffing 12 indicated by the STRIVE study shall be paid a per diem 13 add-on of $9, increasing by equivalent steps for each 14 whole percentage point until the facilities reach a per 15 diem of $16.52. Facilities with at least 80% of the 16 staffing indicated by the STRIVE study shall be paid a per 17 diem add-on of $16.52, increasing by equivalent steps for 18 each whole percentage point until the facilities reach a 19 per diem add-on of $25.77. Facilities with at least 92% of 20 the staffing indicated by the STRIVE study shall be paid a 21 per diem add-on of $25.77, increasing by equivalent steps 22 for each whole percentage point until the facilities reach 23 a per diem add-on of $30.98. Facilities with at least 100% 24 of the staffing indicated by the STRIVE study shall be 25 paid a per diem add-on of $30.98, increasing by equivalent 26 steps for each whole percentage point until the facilities HB4907 Enrolled - 8 - LRB103 38362 CES 68497 b HB4907 Enrolled- 9 -LRB103 38362 CES 68497 b HB4907 Enrolled - 9 - LRB103 38362 CES 68497 b HB4907 Enrolled - 9 - LRB103 38362 CES 68497 b 1 reach a per diem add-on of $36.44. Facilities with at 2 least 110% of the staffing indicated by the STRIVE study 3 shall be paid a per diem add-on of $36.44, increasing by 4 equivalent steps for each whole percentage point until the 5 facilities reach a per diem add-on of $38.68. Facilities 6 with at least 125% or higher of the staffing indicated by 7 the STRIVE study shall be paid a per diem add-on of $38.68. 8 No nursing facility's variable staffing per diem add-on 9 shall be reduced by more than 5% in 2 consecutive 10 quarters. For the quarters beginning July 1, 2022 and 11 October 1, 2022, no facility's variable per diem staffing 12 add-on shall be calculated at a rate lower than 85% of the 13 staffing indicated by the STRIVE study. No facility below 14 70% of the staffing indicated by the STRIVE study shall 15 receive a variable per diem staffing add-on after December 16 31, 2022. 17 (7) For dates of services beginning July 1, 2022, the 18 PDPM nursing component per diem for each nursing facility 19 shall be the product of the facility's (i) statewide PDPM 20 nursing base per diem rate, $92.25, adjusted for the 21 facility average PDPM case mix index calculated quarterly 22 and (ii) the regional wage adjuster, and then add the 23 Medicaid access adjustment as defined in (e-3) of this 24 Section. Transition rates for services provided between 25 July 1, 2022 and October 1, 2023 shall be the greater of 26 the PDPM nursing component per diem or: HB4907 Enrolled - 9 - LRB103 38362 CES 68497 b HB4907 Enrolled- 10 -LRB103 38362 CES 68497 b HB4907 Enrolled - 10 - LRB103 38362 CES 68497 b HB4907 Enrolled - 10 - LRB103 38362 CES 68497 b 1 (A) for the quarter beginning July 1, 2022, the 2 RUG-IV nursing component per diem; 3 (B) for the quarter beginning October 1, 2022, the 4 sum of the RUG-IV nursing component per diem 5 multiplied by 0.80 and the PDPM nursing component per 6 diem multiplied by 0.20; 7 (C) for the quarter beginning January 1, 2023, the 8 sum of the RUG-IV nursing component per diem 9 multiplied by 0.60 and the PDPM nursing component per 10 diem multiplied by 0.40; 11 (D) for the quarter beginning April 1, 2023, the 12 sum of the RUG-IV nursing component per diem 13 multiplied by 0.40 and the PDPM nursing component per 14 diem multiplied by 0.60; 15 (E) for the quarter beginning July 1, 2023, the 16 sum of the RUG-IV nursing component per diem 17 multiplied by 0.20 and the PDPM nursing component per 18 diem multiplied by 0.80; or 19 (F) for the quarter beginning October 1, 2023 and 20 each subsequent quarter, the transition rate shall end 21 and a nursing facility shall be paid 100% of the PDPM 22 nursing component per diem. 23 (d-1) Calculation of base year Statewide RUG-IV nursing 24 base per diem rate. 25 (1) Base rate spending pool shall be: 26 (A) The base year resident days which are HB4907 Enrolled - 10 - LRB103 38362 CES 68497 b HB4907 Enrolled- 11 -LRB103 38362 CES 68497 b HB4907 Enrolled - 11 - LRB103 38362 CES 68497 b HB4907 Enrolled - 11 - LRB103 38362 CES 68497 b 1 calculated by multiplying the number of Medicaid 2 residents in each nursing home as indicated in the MDS 3 data defined in paragraph (4) by 365. 4 (B) Each facility's nursing component per diem in 5 effect on July 1, 2012 shall be multiplied by 6 subsection (A). 7 (C) Thirteen million is added to the product of 8 subparagraph (A) and subparagraph (B) to adjust for 9 the exclusion of nursing homes defined in paragraph 10 (5). 11 (2) For each nursing home with Medicaid residents as 12 indicated by the MDS data defined in paragraph (4), 13 weighted days adjusted for case mix and regional wage 14 adjustment shall be calculated. For each home this 15 calculation is the product of: 16 (A) Base year resident days as calculated in 17 subparagraph (A) of paragraph (1). 18 (B) The nursing home's regional wage adjustor 19 based on the Health Service Areas (HSA) groupings and 20 adjustors in effect on April 30, 2012. 21 (C) Facility weighted case mix which is the number 22 of Medicaid residents as indicated by the MDS data 23 defined in paragraph (4) multiplied by the associated 24 case weight for the RUG-IV 48 grouper model using 25 standard RUG-IV procedures for index maximization. 26 (D) The sum of the products calculated for each HB4907 Enrolled - 11 - LRB103 38362 CES 68497 b HB4907 Enrolled- 12 -LRB103 38362 CES 68497 b HB4907 Enrolled - 12 - LRB103 38362 CES 68497 b HB4907 Enrolled - 12 - LRB103 38362 CES 68497 b 1 nursing home in subparagraphs (A) through (C) above 2 shall be the base year case mix, rate adjusted 3 weighted days. 4 (3) The Statewide RUG-IV nursing base per diem rate: 5 (A) on January 1, 2014 shall be the quotient of the 6 paragraph (1) divided by the sum calculated under 7 subparagraph (D) of paragraph (2); 8 (B) on and after July 1, 2014 and until July 1, 9 2022, shall be the amount calculated under 10 subparagraph (A) of this paragraph (3) plus $1.76; and 11 (C) beginning July 1, 2022 and thereafter, $7 12 shall be added to the amount calculated under 13 subparagraph (B) of this paragraph (3) of this 14 Section. 15 (4) Minimum Data Set (MDS) comprehensive assessments 16 for Medicaid residents on the last day of the quarter used 17 to establish the base rate. 18 (5) Nursing facilities designated as of July 1, 2012 19 by the Department as "Institutions for Mental Disease" 20 shall be excluded from all calculations under this 21 subsection. The data from these facilities shall not be 22 used in the computations described in paragraphs (1) 23 through (4) above to establish the base rate. 24 (e) Beginning July 1, 2014, the Department shall allocate 25 funding in the amount up to $10,000,000 for per diem add-ons to 26 the RUGS methodology for dates of service on and after July 1, HB4907 Enrolled - 12 - LRB103 38362 CES 68497 b HB4907 Enrolled- 13 -LRB103 38362 CES 68497 b HB4907 Enrolled - 13 - LRB103 38362 CES 68497 b HB4907 Enrolled - 13 - LRB103 38362 CES 68497 b 1 2014: 2 (1) $0.63 for each resident who scores in I4200 3 Alzheimer's Disease or I4800 non-Alzheimer's Dementia. 4 (2) $2.67 for each resident who scores either a "1" or 5 "2" in any items S1200A through S1200I and also scores in 6 RUG groups PA1, PA2, BA1, or BA2. 7 (e-1) (Blank). 8 (e-2) For dates of services beginning January 1, 2014 and 9 ending September 30, 2023, the RUG-IV nursing component per 10 diem for a nursing home shall be the product of the statewide 11 RUG-IV nursing base per diem rate, the facility average case 12 mix index, and the regional wage adjustor. For dates of 13 service beginning July 1, 2022 and ending September 30, 2023, 14 the Medicaid access adjustment described in subsection (e-3) 15 shall be added to the product. 16 (e-3) A Medicaid Access Adjustment of $4 adjusted for the 17 facility average PDPM case mix index calculated quarterly 18 shall be added to the statewide PDPM nursing per diem for all 19 facilities with annual Medicaid bed days of at least 70% of all 20 occupied bed days adjusted quarterly. For each new calendar 21 year and for the 6-month period beginning July 1, 2022, the 22 percentage of a facility's occupied bed days comprised of 23 Medicaid bed days shall be determined by the Department 24 quarterly. For dates of service beginning January 1, 2023, the 25 Medicaid Access Adjustment shall be increased to $4.75. This 26 subsection shall be inoperative on and after January 1, 2028. HB4907 Enrolled - 13 - LRB103 38362 CES 68497 b HB4907 Enrolled- 14 -LRB103 38362 CES 68497 b HB4907 Enrolled - 14 - LRB103 38362 CES 68497 b HB4907 Enrolled - 14 - LRB103 38362 CES 68497 b 1 (e-4) Subject to federal approval, on and after January 1, 2 2024, the Department shall increase the rate add-on at 3 paragraph (7) subsection (a) under 89 Ill. Adm. Code 147.335 4 for ventilator services from $208 per day to $481 per day. 5 Payment is subject to the criteria and requirements under 89 6 Ill. Adm. Code 147.335. 7 (f) (Blank). 8 (g) Notwithstanding any other provision of this Code, on 9 and after July 1, 2012, for facilities not designated by the 10 Department of Healthcare and Family Services as "Institutions 11 for Mental Disease", rates effective May 1, 2011 shall be 12 adjusted as follows: 13 (1) (Blank); 14 (2) (Blank); 15 (3) Facility rates for the capital and support 16 components shall be reduced by 1.7%. 17 (h) Notwithstanding any other provision of this Code, on 18 and after July 1, 2012, nursing facilities designated by the 19 Department of Healthcare and Family Services as "Institutions 20 for Mental Disease" and "Institutions for Mental Disease" that 21 are facilities licensed under the Specialized Mental Health 22 Rehabilitation Act of 2013 shall have the nursing, 23 socio-developmental, capital, and support components of their 24 reimbursement rate effective May 1, 2011 reduced in total by 25 2.7%. 26 (i) On and after July 1, 2014, the reimbursement rates for HB4907 Enrolled - 14 - LRB103 38362 CES 68497 b HB4907 Enrolled- 15 -LRB103 38362 CES 68497 b HB4907 Enrolled - 15 - LRB103 38362 CES 68497 b HB4907 Enrolled - 15 - LRB103 38362 CES 68497 b 1 the support component of the nursing facility rate for 2 facilities licensed under the Nursing Home Care Act as skilled 3 or intermediate care facilities shall be the rate in effect on 4 June 30, 2014 increased by 8.17%. 5 (i-1) Subject to federal approval, on and after January 1, 6 2024, the reimbursement rates for the support component of the 7 nursing facility rate for facilities licensed under the 8 Nursing Home Care Act as skilled or intermediate care 9 facilities shall be the rate in effect on June 30, 2023 10 increased by 12%. 11 (j) Notwithstanding any other provision of law, subject to 12 federal approval, effective July 1, 2019, sufficient funds 13 shall be allocated for changes to rates for facilities 14 licensed under the Nursing Home Care Act as skilled nursing 15 facilities or intermediate care facilities for dates of 16 services on and after July 1, 2019: (i) to establish, through 17 June 30, 2022 a per diem add-on to the direct care per diem 18 rate not to exceed $70,000,000 annually in the aggregate 19 taking into account federal matching funds for the purpose of 20 addressing the facility's unique staffing needs, adjusted 21 quarterly and distributed by a weighted formula based on 22 Medicaid bed days on the last day of the second quarter 23 preceding the quarter for which the rate is being adjusted. 24 Beginning July 1, 2022, the annual $70,000,000 described in 25 the preceding sentence shall be dedicated to the variable per 26 diem add-on for staffing under paragraph (6) of subsection HB4907 Enrolled - 15 - LRB103 38362 CES 68497 b HB4907 Enrolled- 16 -LRB103 38362 CES 68497 b HB4907 Enrolled - 16 - LRB103 38362 CES 68497 b HB4907 Enrolled - 16 - LRB103 38362 CES 68497 b 1 (d); and (ii) in an amount not to exceed $170,000,000 annually 2 in the aggregate taking into account federal matching funds to 3 permit the support component of the nursing facility rate to 4 be updated as follows: 5 (1) 80%, or $136,000,000, of the funds shall be used 6 to update each facility's rate in effect on June 30, 2019 7 using the most recent cost reports on file, which have had 8 a limited review conducted by the Department of Healthcare 9 and Family Services and will not hold up enacting the rate 10 increase, with the Department of Healthcare and Family 11 Services. 12 (2) After completing the calculation in paragraph (1), 13 any facility whose rate is less than the rate in effect on 14 June 30, 2019 shall have its rate restored to the rate in 15 effect on June 30, 2019 from the 20% of the funds set 16 aside. 17 (3) The remainder of the 20%, or $34,000,000, shall be 18 used to increase each facility's rate by an equal 19 percentage. 20 (k) During the first quarter of State Fiscal Year 2020, 21 the Department of Healthcare of Family Services must convene a 22 technical advisory group consisting of members of all trade 23 associations representing Illinois skilled nursing providers 24 to discuss changes necessary with federal implementation of 25 Medicare's Patient-Driven Payment Model. Implementation of 26 Medicare's Patient-Driven Payment Model shall, by September 1, HB4907 Enrolled - 16 - LRB103 38362 CES 68497 b HB4907 Enrolled- 17 -LRB103 38362 CES 68497 b HB4907 Enrolled - 17 - LRB103 38362 CES 68497 b HB4907 Enrolled - 17 - LRB103 38362 CES 68497 b 1 2020, end the collection of the MDS data that is necessary to 2 maintain the current RUG-IV Medicaid payment methodology. The 3 technical advisory group must consider a revised reimbursement 4 methodology that takes into account transparency, 5 accountability, actual staffing as reported under the 6 federally required Payroll Based Journal system, changes to 7 the minimum wage, adequacy in coverage of the cost of care, and 8 a quality component that rewards quality improvements. 9 (l) The Department shall establish per diem add-on 10 payments to improve the quality of care delivered by 11 facilities, including: 12 (1) Incentive payments determined by facility 13 performance on specified quality measures in an initial 14 amount of $70,000,000. Nothing in this subsection shall be 15 construed to limit the quality of care payments in the 16 aggregate statewide to $70,000,000, and, if quality of 17 care has improved across nursing facilities, the 18 Department shall adjust those add-on payments accordingly. 19 The quality payment methodology described in this 20 subsection must be used for at least State Fiscal Year 21 2023. Beginning with the quarter starting July 1, 2023, 22 the Department may add, remove, or change quality metrics 23 and make associated changes to the quality payment 24 methodology as outlined in subparagraph (E). Facilities 25 designated by the Centers for Medicare and Medicaid 26 Services as a special focus facility or a hospital-based HB4907 Enrolled - 17 - LRB103 38362 CES 68497 b HB4907 Enrolled- 18 -LRB103 38362 CES 68497 b HB4907 Enrolled - 18 - LRB103 38362 CES 68497 b HB4907 Enrolled - 18 - LRB103 38362 CES 68497 b 1 nursing home do not qualify for quality payments. 2 (A) Each quality pool must be distributed by 3 assigning a quality weighted score for each nursing 4 home which is calculated by multiplying the nursing 5 home's quality base period Medicaid days by the 6 nursing home's star rating weight in that period. 7 (B) Star rating weights are assigned based on the 8 nursing home's star rating for the LTS quality star 9 rating. As used in this subparagraph, "LTS quality 10 star rating" means the long-term stay quality rating 11 for each nursing facility, as assigned by the Centers 12 for Medicare and Medicaid Services under the Five-Star 13 Quality Rating System. The rating is a number ranging 14 from 0 (lowest) to 5 (highest). 15 (i) Zero-star or one-star rating has a weight 16 of 0. 17 (ii) Two-star rating has a weight of 0.75. 18 (iii) Three-star rating has a weight of 1.5. 19 (iv) Four-star rating has a weight of 2.5. 20 (v) Five-star rating has a weight of 3.5. 21 (C) Each nursing home's quality weight score is 22 divided by the sum of all quality weight scores for 23 qualifying nursing homes to determine the proportion 24 of the quality pool to be paid to the nursing home. 25 (D) The quality pool is no less than $70,000,000 26 annually or $17,500,000 per quarter. The Department HB4907 Enrolled - 18 - LRB103 38362 CES 68497 b HB4907 Enrolled- 19 -LRB103 38362 CES 68497 b HB4907 Enrolled - 19 - LRB103 38362 CES 68497 b HB4907 Enrolled - 19 - LRB103 38362 CES 68497 b 1 shall publish on its website the estimated payments 2 and the associated weights for each facility 45 days 3 prior to when the initial payments for the quarter are 4 to be paid. The Department shall assign each facility 5 the most recent and applicable quarter's STAR value 6 unless the facility notifies the Department within 15 7 days of an issue and the facility provides reasonable 8 evidence demonstrating its timely compliance with 9 federal data submission requirements for the quarter 10 of record. If such evidence cannot be provided to the 11 Department, the STAR rating assigned to the facility 12 shall be reduced by one from the prior quarter. 13 (E) The Department shall review quality metrics 14 used for payment of the quality pool and make 15 recommendations for any associated changes to the 16 methodology for distributing quality pool payments in 17 consultation with associations representing long-term 18 care providers, consumer advocates, organizations 19 representing workers of long-term care facilities, and 20 payors. The Department may establish, by rule, changes 21 to the methodology for distributing quality pool 22 payments. 23 (F) The Department shall disburse quality pool 24 payments from the Long-Term Care Provider Fund on a 25 monthly basis in amounts proportional to the total 26 quality pool payment determined for the quarter. HB4907 Enrolled - 19 - LRB103 38362 CES 68497 b HB4907 Enrolled- 20 -LRB103 38362 CES 68497 b HB4907 Enrolled - 20 - LRB103 38362 CES 68497 b HB4907 Enrolled - 20 - LRB103 38362 CES 68497 b 1 (G) The Department shall publish any changes in 2 the methodology for distributing quality pool payments 3 prior to the beginning of the measurement period or 4 quality base period for any metric added to the 5 distribution's methodology. 6 (2) Payments based on CNA tenure, promotion, and CNA 7 training for the purpose of increasing CNA compensation. 8 It is the intent of this subsection that payments made in 9 accordance with this paragraph be directly incorporated 10 into increased compensation for CNAs. As used in this 11 paragraph, "CNA" means a certified nursing assistant as 12 that term is described in Section 3-206 of the Nursing 13 Home Care Act, Section 3-206 of the ID/DD Community Care 14 Act, and Section 3-206 of the MC/DD Act. The Department 15 shall establish, by rule, payments to nursing facilities 16 equal to Medicaid's share of the tenure wage increments 17 specified in this paragraph for all reported CNA employee 18 hours compensated according to a posted schedule 19 consisting of increments at least as large as those 20 specified in this paragraph. The increments are as 21 follows: an additional $1.50 per hour for CNAs with at 22 least one and less than 2 years' experience plus another 23 $1 per hour for each additional year of experience up to a 24 maximum of $6.50 for CNAs with at least 6 years of 25 experience. For purposes of this paragraph, Medicaid's 26 share shall be the ratio determined by paid Medicaid bed HB4907 Enrolled - 20 - LRB103 38362 CES 68497 b HB4907 Enrolled- 21 -LRB103 38362 CES 68497 b HB4907 Enrolled - 21 - LRB103 38362 CES 68497 b HB4907 Enrolled - 21 - LRB103 38362 CES 68497 b 1 days divided by total bed days for the applicable time 2 period used in the calculation. In addition, and additive 3 to any tenure increments paid as specified in this 4 paragraph, the Department shall establish, by rule, 5 payments supporting Medicaid's share of the 6 promotion-based wage increments for CNA employee hours 7 compensated for that promotion with at least a $1.50 8 hourly increase. Medicaid's share shall be established as 9 it is for the tenure increments described in this 10 paragraph. Qualifying promotions shall be defined by the 11 Department in rules for an expected 10-15% subset of CNAs 12 assigned intermediate, specialized, or added roles such as 13 CNA trainers, CNA scheduling "captains", and CNA 14 specialists for resident conditions like dementia or 15 memory care or behavioral health. 16 (m) The Department shall work with nursing facility 17 industry representatives to design policies and procedures to 18 permit facilities to address the integrity of data from 19 federal reporting sites used by the Department in setting 20 facility rates. 21 (Source: P.A. 102-77, eff. 7-9-21; 102-558, eff. 8-20-21; 22 102-1035, eff. 5-31-22; 102-1118, eff. 1-18-23; 103-102, 23 Article 40, Section 40-5, eff. 1-1-24; 103-102, Article 50, 24 Section 50-5, eff. 1-1-24; 103-593, eff. 6-7-24; 103-605, eff. 25 7-1-24.) HB4907 Enrolled - 21 - LRB103 38362 CES 68497 b HB4907 Enrolled- 22 -LRB103 38362 CES 68497 b HB4907 Enrolled - 22 - LRB103 38362 CES 68497 b HB4907 Enrolled - 22 - LRB103 38362 CES 68497 b 1 Section 15. The Workforce Direct Care Expansion Act is 2 amended by changing Section 15 as follows: 3 (405 ILCS 162/15) 4 Sec. 15. Membership. The Task Force shall be chaired by 5 Illinois' Chief Behavioral Health Officer or the Officer's 6 designee. The chair of the Task Force may designate an a 7 nongovernmental entity or entities to provide pro bono 8 administrative support to the Task Force. Except as otherwise 9 provided in this Section, members of the Task Force shall be 10 appointed by the chair. The Task Force shall consist of at 11 least 15 members, including, but not limited to, the 12 following: 13 (1) community mental health and substance use 14 providers representing geographical regions across the 15 State; 16 (2) representatives of statewide associations that 17 represent behavioral health providers; 18 (3) representatives of advocacy organizations either 19 led by or consisting primarily of individuals with lived 20 experience; 21 (4) a representative from the Division of Mental 22 Health in the Department of Human Services; 23 (5) a representative from the Division of Substance 24 Use Prevention and Recovery in the Department of Human 25 Services; HB4907 Enrolled - 22 - LRB103 38362 CES 68497 b HB4907 Enrolled- 23 -LRB103 38362 CES 68497 b HB4907 Enrolled - 23 - LRB103 38362 CES 68497 b HB4907 Enrolled - 23 - LRB103 38362 CES 68497 b 1 (6) a representative from the Department of Children 2 and Family Services; 3 (7) a representative from the Department of Public 4 Health; 5 (8) one member of the House of Representatives, 6 appointed by the Speaker of the House of Representatives; 7 (9) one member of the House of Representatives, 8 appointed by the Minority Leader of the House of 9 Representatives; 10 (10) one member of the Senate, appointed by the 11 President of the Senate; and 12 (11) one member of the Senate, appointed by the 13 Minority Leader of the Senate. 14 (Source: P.A. 103-690, eff. 7-19-24.) HB4907 Enrolled - 23 - LRB103 38362 CES 68497 b