Polsinelli Shughart Health Care Law e-Alert Polsinelli Shughart PC
Long-Term Care and Senior Housing Attorneys

  Mary Beth Blake
Practice Area Chair

Randal L. Schultz
Practice Area Vice-Chair

Janice A. Anderson
Douglas K. Anning
Cynthia E. Berry
Tina M. Boschert
Gerald W. Brenneman
Teresa A. Brooks
Jared O. Brooner
Anne M. Cooper
Fredric J. Entin
Rebekah W. Francis
Kara M. Friedman
Rebecca L. Frigy
Randy S. Gerber
Jay M. Howard
George Jackson, III
Joan B. Killgore
Jason T. Lundy
Patrick J. Martinez
Jane K. McCahill
Matthew J. Murer
Edward F. Novak
Thomas P. O'Donnell
Alan K. Parver
Valerie S. Reich
Daniel S. Reinberg
Charles P. Sheets
Heidi R. Slaw
Sandy J. Smith
Kathryn M. Stalmack
Leah Mendelsohn Stone
Chad C. Stout
Steven K. Stranne
Emily C. Tremmel
Andrew B. Turk
Kimela R. West
Christopher K. Wilson
Mark R. Woodbury

 

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August 2010

 

A Polsinelli Shughart Health Care Update:

Illinois Health Facilities and Services Review Board Developments

 

In recent weeks, there have been a number of reports and developments relating to the Illinois Health Facilities and Services Review Board (the “CON Board”) including new CON Board member appointments and the issuance of two reports which the CON Board is now mandated to produce and disclose to the public. The CON Board reviews applications for construction and expansion projects and other changes to health care facilities, and is charged with overseeing the health care provider system to avoid unnecessary duplication of facilities, control costs and to increase the quality and accessibility of health care services to medically underserved communities.

Health Facilities and Services Review Board Appointments

On August 13, 2010, Governor Pat Quinn appointed two new members to the CON Board: Ronald Eaker of Urbana and Donald Yost of Charleston. Eaker and Yost are expected to attend the September 21, 2010 Board meeting.

Eaker is a former United Methodist minister and former nursing home administrator. He is also a member and one of the founders of the Champaign County Health Care Consumers’ health care access task force, a citizen action organization designed to increase consumer influence on the health care decision making process.

Yost is president of Yost Management Company, an operator of senior housing units, the president of Illinois Affordable Housing, NFP, and a retired employee of the Illinois Department of Corrections. Yost is a current member of the Eastern Illinois University Board of Trustees and a former member of the Prisoner Review Board.

The appointments of Eaker and Yost coincide with the recent amendments to the Illinois Health Facilities Planning Act (the “Act”), which expanded membership on the Illinois Health Facilities and Services Review Board from five to nine members and required one member represent a non-profit health care consumer advocacy organization. With the appointments of Eaker and Yost, only one vacancy remains on the CON Board.

In addition to expanding the membership of the CON Board, the amendments added the following requirements:

  1. All members must be residents of Illinois and at least four members must reside outside the Chicago Metropolitan Statistical Area (Cook, DeKalb, DuPage, Grundy, Kane, Kendall, McHenry, and Will Counties)
  2. Board members shall not be convicted felons or have pled guilty to a felony
  3. Each member must have reasonable knowledge of the practice, procedures and principles of health care delivery with at least five members knowledgeable about health care delivery systems, health systems planning, finance or management of health care facilities and one member representing a non-profit health care consumer advocacy organization
  4. Members and their spouses and immediate family members cannot have a financial interest in or business relationship with a health care facility subject to the Act.

Qualified individuals may nominate themselves for Board membership at http://appointments.illinois.gov/bcForm.cfm.

Long-Term Care Facility Advisory Subcommittee

On July 27, 2010, the Acting Chairman of the Illinois Health Facilities and Services Review Board, Dale Galassie, appointed 19 members to the Long-Term Care Facility Advisory Subcommittee of the CON Board. The subcommittee is charged with developing and recommending rules designed to address the planning process and need determination for long-term care facilities in Illinois. Subcommittee members shall also provide continuous review and recommendation on policies and procedures relative to long-term care and the review of related projects.

Public Disclosures: Settlement Agreements and CON Board Finances

To improve transparency of the CON Board, the amended Act requires the CON Board to post an annual report summarizing all settlement agreements entered into with the CON Board as well as an annual accounting of the revenue collected and expenses incurred in administering the Act.

A summary of the FY 2010 Settlement agreements were posted on the CON Board’s website on July 28, 2010. Cash settlement payments pertaining to allegations of non-compliance ranged from $1,000 to $172,000. In addition to the cash settlements, a number of providers agreed to provide in-kind consideration to settle claims. In connection with one provider settlement last year, a value of nearly $630,000 was attributed to a commitment to provide physician services to a community health clinic. This was the largest settlement recorded.

With regard to CON Board finances, the annual accounting of the CON Board’s FY 2010 finances was posted to the CON Board’s website on July 29, 2010. It showed the following information:

  • The CON Board collected $2,147,979 in total revenue, down nearly $300,000 from FY 2009
  • Application fees accounted for $1,966,282 (or 92%) of total revenue for FY 2010.
  • Total expenditures for FY 2010 were $1,383,813, down nearly $360,000 from FY 2009
  • FY 2010 revenues exceeded expenses by $764,166

While the State budget situation continues to be grim, the CON Board activities continue to generate revenue for other State programs. It is in this context that the legislature might consider compensating the CON Board members for their services going forward as originally was contemplated when the legislature approved changes to the Act in 2009. Not only is the current CON Board uncompensated but it has been operating without an Executive Secretary for over one year.

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