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Recently, Illinois Governor Pat Quinn signed a bill (S.B. 2934,
Public Act 97-1115, 97th General Assembly) sponsored by Illinois
State Senator Susan Garrett that amends the Illinois Health
Facilities Planning Act (the "Act") in several critical
ways, including but not limited to the following:
New filing deadlines for final cost reports. A
healthcare provider or entity that has been granted a certificate
of need permit must (i) submit the final completion and cost report
for its approved project within 90 days after the approved
project's completion date or extension thereof, and (ii) submit
annual progress reports no earlier than 30 days before and no later
than 30 days after each anniversary date of the Illinois Health
Facilities and Services Review Board's (the "Board")
approval of the permit until the project is complete.
Additional content requirements for annual progress
reports. In order to maintain a valid permit, a permit
holder's annual progress report must include information
regarding the committed funds expended toward the approved project.
If an approved project is completed within one year of the
Board's approval of the certificate of need permit, then the
first annual progress report must contain information relating to
the expenditure commitment of the project's total cost. If a
project is not completed in one year, then, by the second annual
progress report, a permit holder must expend 33 percent or more of
the project's total cost by signed contracts or other legal
means.
Fines for failure to submit a final cost
report. Beginning Feb. 27, 2013, permit holders who fail
to submit a final completion and cost report within 90 days after
the approved project completion date (the "post-permit and
reporting requirements set forth in Section 5 [of the Act]")
will be fined an amount not to exceed $10,000 plus an additional
$10,000 for each 30-day period that the violation continues. This
fine will continue to accrue until the date that (i) the
post-permit requirements are met and the post-permit reports are
received by the Board, or (ii) the matter is referred by the Board
to its legal counsel. The accrued fine cannot be waived by a permit
holder's submitting the required information and reports.
However, prior to the accrual of any fine, the Board must provide
written notice to a permit holder of its post-permit and reporting
requirements no later than 30 days before the due date of such
requirements. (SeePublic Act 097-1115 (97th Illinois General
Assembly)).
Healthcare providers seeking certificate of need permit approval
in the state of Illinois must be especially careful to comply with
all certificate of need permit requirements promulgated by the Act
and rules and regulations issued thereunder. Failure to comply with
such requirements, including failure to submit a final cost report,
may carry hefty penalties and other implications for such
entities.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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