Summary as Introduced
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.
Staff Analysis
Bill as Introduced
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.
Senate Committee Amendment 2
The amendment would amend the Illinois Public Aid Code to create the Distressed Hospital Loan Program, which would provide interest-free bridge loans to financially distressed public and nonprofit hospitals to prevent closures or facilitate reopenings. Administered by the Department of Healthcare and Family Services in coordination with the Department of Public Health and the Governor’s Office of Management and Budget, the program would establish eligibility standards, repayment requirements, and oversight procedures for participating hospitals. The bill also creates the Distressed Hospital Loan Program Fund, transfers $85 million into the fund beginning January 1, 2027, and sunsets the program on June 30, 2033. In addition, the legislation imposes new financial reporting, contingency planning, and compliance requirements on certain hospitals, including annual reporting of financial and utilization data, emergency financial contingency plans for hospitals with outstanding state-related debts, and penalties for noncompliance. The measure also authorizes emergency rulemaking to implement reporting requirements, with some provisions taking effect immediately and others effective July 1, 2026.