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Polsinelli - Environmental and Natural Resources
         
 

August 2013

 

Updates to Need Determinations Show a General Decrease in Need for Health Care Facilities and Services in Illinois

 
 
             
 

Health Care Attorneys:

 

Matthew J. Murer

Practice Area Chair

 

Jane E. Arnold

Practice Area Vice Chair

 

Colleen M. Faddick

Practice Area Vice Chair

 

Alan K. Parver

Practice Area Vice Chair

 

Lisa J. Acevedo
Janice A. Anderson
Douglas K. Anning
Joi-Lee K. Beachler
Jack M. Beal
Cynthia E. Berry
Margaret "Peggy" Binzer
Mary Beth Blake
Mary Clare Bonaccorsi
Gerald W. Brenneman
Teresa A. Brooks
Jared O. Brooner
Ana I. Christian
Anika D. Clifton
Anne M. Cooper
Lauren P. DeSantis-Then
S. Jay Dobbs
Thomas M. Donohoe
Cavan K. Doyle
Meredith A. Duncan
Erin Fleming Dunlap
Fredric J. Entin
Jennifer L. Evans
T. Jeffrey Fitzgerald
Michael T. Flood
Kara M. Friedman
Rebecca L. Frigy
Asher D. Funk
Randy S. Gerber
Mark H. Goran
Linas J. Grikis
Lauren Z. Groebe
Brett B. Heger
Jonathan K. Henderson
Margaret H. Hillman
Jay M. Howard
Cullin B. Hughes
Sara V. Iams
George Jackson, III
Samuel H. Jeter
Bruce A. Johnson
Lindsay R. Kessler
Joan B. Killgore
Anne L. Kleindienst
Chad K. Knight
Sarah R. Kocher
Dana M. Lach
Robert L. Layton
Jason T. Lundy
Ryan M. McAteer
Jane K. McCahill
Ann C. McCullough
Matthew Melfi
Ryan J. Mize
Aileen T. Murphy
Hannah L. Neshek
Gerald A. Niederman
Edward F. Novak
Thomas P. O'Donnell
Aaron E. Perry
Mitchell D. Raup
Daniel S. Reinberg
Kristen B. Rosati
Donna J. Ruzicka
Charles P. Sheets
Kathryn M. Stalmack
Leah Mendelsohn Stone
Chad C. Stout
Steven K. Stranne
William E. Swart
Tennille A. Syrstad
Emily C. Tremmel
Andrew B. Turk
Joseph T. Van Leer
Andrew J. Voss
Joshua M. Weaver
Emily Wey
Mark R. Woodbury
Janet E. Zeigler

 

To learn more about our Health Care practice, or to contact one of our Health Care attorneys, click here.

 

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On August 15, 2013, the Illinois Health Facilities and Services Review Board ("the Board") released updated inventories and need determinations for health service areas across the State. The new need determinations reveal a general overall decrease in calculated need for health facilities and services compared to the June 27, 2013 facility updates. This decrease is due to a combination of factors. The 2011 need determinations, upon which the monthly updates are based, utilized projected 2008 census data that overstated the State's population by 1.2 million. Such an overstatement in population combined with relatively flat utilization rates contributed to the significant decrease in need. Further, due to a 2012 amendment to the Illinois Health Facilities Planning Act, the 2013 need projections are based on five-year population projections, instead of ten-year projections as was the case for calculating the 2011 base need determinations.

The Board determines inventory numbers and calculates base need determinations for hospital, long-term care, and other health service categories utilizing State population projections and use rates for each service category. The Board adjusts the inventory monthly to reflect changes for approved projects and increases and decreases to facility capacity not requiring Board approval.

Highlights of the changes to the need determinations include:

  • Long-Term Care Facilities experienced the most dramatic decrease in need. For general long-term nursing care, the need decreased overall from 7,866 beds to 970 beds. For ICF/DD facilities, the need decreased from 2,394 beds to 2,055 beds.
  • Hospitals experienced decreasing need across most service lines. Beds needed decreased from 318 to 53 for medical-surgical and pediatrics, from 239 to 126 for intensive care, and from 163 to 79 for obstetrics/gynecology. (Hospital bed need essentially remained the same for acute mental illness, rehabilitation, and long-term acute care beds.)
  • In-Center Hemodialysis is the only service category with an increase in projected need. Due to an increase in utilization, the need for end stage renal disease dialysis stations increased from 62 to 188. However, all of the State's need is in the City of Chicago, DuPage County, and Suburban Cook County.

What Providers Should Know

  • For providers looking to open facilities and/or increase capacity in existing facilities beyond the amount permitted under the 10% rule, decreases in need determinations will inevitably affect their ability to gain Board approval and obtain a certificate of need.
  • As a result, health care providers submitting CON applications should carefully analyze utilization in their proposed service area to establish the need for additional services.
  • While the August 15, 2013 updates reflect an overall decrease in need, the need determination is one factor the Board considers—utilization of existing providers within the project's geographic service area as well as impact to existing providers in the area are the other criteria. Thus, depending on the provider's location, need for a particular service may exist despite an overall decrease across the State. Consult the recently released inventory and need determination data to review the need determinations for specific locations.

Additional Resources

  • Inventory of Hospital Services is available here.
  • Inventory of Long-Term Care Services is available here.
  • Inventory of Other Health Services is available here.

For More Information

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