Illinois Compiled Statutes
Chapter 210 - HEALTH FACILITIES AND REGULATION
210 ILCS 40/ - Life Care Facilities Act.

(210 ILCS 40/1) (from Ch. 111 1/2, par. 4160-1)
Sec. 1.
This Act shall be known and may be cited as the "Life Care Facilities Act".

(Source: P.A. 82-547.)
 
(210 ILCS 40/2) (from Ch. 111 1/2, par. 4160-2)
Sec. 2. As used in this Act, unless the context otherwise requires:
(a) "Department" means the Department of Public Health.
(b) "Director" means the Director of the Department.
(c) "Life care contract" means a contract to provide to a person for the
duration of such person's life or for a term in excess of one year, nursing
services, medical services or personal care services, in addition to
maintenance
services for such person in a facility, conditioned upon the transfer of
an entrance fee to the provider of such services in addition to or in lieu
of the payment of regular periodic charges for the care and services involved.
(d) "Provider" means a person who provides services pursuant to a life care contract.
(e) "Resident" means a person who enters into a life care contract with
a provider, or who is designated in a life care contract to be a person provided
with maintenance and nursing, medical or personal care services.
(f) "Facility" means a place or places in which a provider undertakes
to provide a resident with nursing services, medical services or personal
care services, in addition to maintenance services for a term in excess of
one year or for life pursuant to a life care contract. The term also
means a place or places in which a provider undertakes to provide such
services to a non-resident.
(g) "Living unit" means an apartment, room or other area within a facility
set aside for the exclusive use of one or more identified residents.
(h) "Entrance fee" means an initial or deferred transfer to a provider
of a sum of money or property, made or promised to be made by a person entering
into a life care contract, which assures a resident of services pursuant
to a life care contract.
(i) "Permit" means a written authorization to enter into life care contracts
issued by the Department to a provider.
(j) "Medical services" means those services pertaining to medical or dental
care that are performed in behalf of patients at the direction of a physician
licensed under the Medical Practice Act of 1987 or a dentist licensed under the
Illinois Dental Practice Act by such physicians or dentists, or
by a registered or
licensed practical nurse as defined in the Nurse Practice Act

or by
other professional and technical personnel.
(k) "Nursing services" means those services pertaining to the curative,
restorative and preventive aspects of nursing care that are performed at
the direction of a physician licensed under the Medical Practice Act of 1987 by
or under the supervision of a registered or licensed practical nurse as
defined in the Nurse Practice Act.
(l) "Personal care services" means assistance with meals, dressing,
movement,
bathing or other personal needs or maintenance, or general supervision and
oversight of the physical and mental well-being of an individual, who is
incapable of maintaining a private, independent residence or who is incapable
of managing his person whether or not a guardian has been appointed for
such individual.
(m) "Maintenance services" means food, shelter and laundry services.
(n) "Certificates of Need" means those permits issued pursuant to the
Illinois Health Facilities Planning Act as now or hereafter amended.
(o) "Non-resident" means a person admitted to a facility who has not
entered into a life care contract.

(Source: P.A. 95-639, eff. 10-5-07.)
 
(210 ILCS 40/3) (from Ch. 111 1/2, par. 4160-3)
Sec. 3.

After July 1, 1982, no person may enter into a life care
contract as a provider, or as a provider extend the term of an existing life
care contract except pursuant to a permit obtained in accordance with this Act.

(Source: P.A. 82-547.)
 
(210 ILCS 40/4) (from Ch. 111 1/2, par. 4160-4)
Sec. 4.

To qualify for a permit to enter into life care contracts with
respect to any facility, a person shall file an application for a permit
with the Department on permit application forms provided by the Department
and shall attach to the application as an exhibit a copy of the proposed
form of life care contract to be entered into with residents at
that facility. All applications shall be accompanied by a copy of the
Letter of Credit or Escrow Agreement as provided
by Section 7 of this Act and by a permit application fee of
$100. The application shall be signed under oath by the applicant, and
if the applicant is other than an individual the application shall be signed
under oath by the chief executive officer of the applicant.

(Source: P.A. 85-1349.)
 
(210 ILCS 40/5) (from Ch. 111 1/2, par. 4160-5)
Sec. 5.

(a) At the time of or prior to the execution of a life care
contract and the transfer of any money or other property to a provider or
escrow agent, the provider shall deliver to the resident a copy of a financial
disclosure statement reflecting the provider's financial condition. This
statement shall include, but not be limited to, disclosure of short term
assets and liabilities.
(b) The life care contract shall provide that any person entering into
the contract shall have a period of 14 days beginning with the first full
calendar day following the execution of the contract, or the payment of
an initial sum of money as a deposit or application fee, or receipt of the
financial disclosure statement, whichever occurs last, within which to rescind
the life care contract without penalty or further obligation. In the event
of such rescission, all money or property paid or transferred by such person
shall be fully refunded. No person shall be required to move into a facility
until after the expiration of the 14 day rescission period. No permit shall
be issued under this Act if the form of life care contract attached as an
exhibit in support of the application for permit as provided in Section
4 does not contain the provisions required by this paragraph (b).

(Source: P.A. 82-547.)
 
(210 ILCS 40/6) (from Ch. 111 1/2, par. 4160-6)
Sec. 6.
Upon receipt of the completed application and exhibits and
payment of the fee by the applicant, and proof of compliance by the applicant
with the provisions of Section 7, the Director shall issue a permit to the
provider, subject to the conditions imposed pursuant to Section 7,
allowing the provider to enter into life care contracts with respect to
the number of living units and facility described in the application.
A permit issued pursuant to this Act shall remain in full force, subject
to the provisions of this Act, and shall contain in a prominent location
a statement that the issuance of such permit neither constitutes approval,
recommendation or endorsement by the Department or Director nor evidences
the accuracy or completeness of the information furnished to the Department.
A permit may be revoked by the Department if the facility fails to provide to
the
Department an accurate disclosure document in accordance with the
Alzheimer's Disease and Related Dementias Special Care Disclosure Act.
All permits shall be nontransferable.

(Source: P.A. 96-990, eff. 7-2-10.)
 
(210 ILCS 40/6.1) (from Ch. 111 1/2, par. 4160-6.1)
Sec. 6.1.

In the case of a newly constructed facility, the permit
standards prescribed by the Department shall provide that the licensed
skilled nursing beds in the facility may be made available to non-residents
of the facility, provided that the applicant demonstrates on the permit
application form, to the satisfaction of the Department, that the facility
can accommodate all residents requiring skilled nursing beds, as well as all
non-residents admitted to the facility requiring such beds. Such
accommodation shall be accomplished without transferring or discharging any
resident or non-resident.

(Source: P.A. 85-1244.)
 
(210 ILCS 40/7) (from Ch. 111 1/2, par. 4160-7)
Sec. 7.

As a condition for the issuance of a permit
pursuant to this Act, the provider shall establish and maintain on a
current basis, a letter of credit or an escrow account with a bank,
trust company, or other financial institution located in the State of
Illinois. The letter of credit shall be in an amount and form acceptable
to the Department, but in no event shall the amount exceed that applicable
to the corresponding escrow agreement alternative, as described below. The
terms of the escrow agreement shall meet the following provisions:
(a) Requirements for new facilities.
(1) If the entrance fee applies to a living unit which has not previously
been occupied by any resident, all entrance fee payments representing either
all or any smaller portion of the total entrance fee shall be paid to the
escrow agent by the resident.
(2) When the provider has sold at least 1/2 of its living units, obtained
a mortgage commitment, if needed, and obtained all necessary zoning permits
and Certificates of Need, if required, the escrow agent may release a sum
representing 1/5 of the resident's total entrance fee to the provider.
Upon completion of the foundation of the living unit an additional 1/5 of
the resident's total entrance fee may be released to the provider. When
the living unit is under roof a further and additional 1/5 of the resident's
total entrance fee may be released to the provider. All remaining monies,
if any, shall remain in escrow until the resident's living unit is
substantially completed and ready for occupancy by the resident. When the
living unit is ready for occupancy the escrow agent may release the
remaining escrow amount to the provider and further entrance fee payments,
if any, may be paid by the resident to the provider directly. All monies
released from escrow shall be used for the facility and for no other purpose.
(b) General requirements for all facilities, including new and existing facilities.
(1) At the time of resident occupancy and at all times thereafter, the
escrow amount shall be in an amount which equals or exceeds the aggregate
principal and interest payments due during the next 6 months on account
of any first mortgage or other long-term financing of the facility. Existing
facilities shall have 2 years from the date of this Act becoming law to
comply with this subsection. Upon application from a facility showing good
cause, the Director may extend compliance with this subsection one additional year.
(2) Notwithstanding paragraph (1) of this subsection, the escrow monies
required under paragraph (1) of this subsection may be released to the provider
upon approval by the Director. The Director may attach such conditions
on the release of monies as he deems fit including, but not limited to, the
performance of an audit which satisfies the Director that the facility is
solvent, a plan from the facility to bring the facility back in compliance
with paragraph (1) of this subsection, and a repayment schedule.
(3) The principal of the escrow account may be invested with the earnings
thereon payable to the provider as it accrues.
(4) If the facility ceases to operate all monies in the escrow account
except the amount representing principal and interest shall be repaid by
the escrow agent to the resident.
(5) Balloon payments due at conclusion of the mortgage shall not be subject
to the escrow requirements of paragraph (1) this subsection.

(Source: P.A. 85-1349.)
 
(210 ILCS 40/8) (from Ch. 111 1/2, par. 4160-8)
Sec. 8.

No State or federal funds which are appropriated by the General
Assembly or which pass through the General Revenue Fund or any special fund
in the State Treasury shall be paid to a provider not having a permit issued
under this Act.

(Source: P.A. 82-547.)
 
(210 ILCS 40/9) (from Ch. 111 1/2, par. 4160-9)
Sec. 9.

At any time the Director receives notice from the escrow agent
that the provisions of Section 7 have not been complied with, or at any
other time when the Director has reason to believe that the provider is
insolvent, is in imminent danger of becoming insolvent or that its condition
is such that it may be financially unable to fully perform its obligations
pursuant to life care contracts,
the Director shall,
through the Attorney General, file an appropriate action on behalf of the
State of Illinois and any or all residents in any court of competent jurisdiction,
including the federal bankruptcy court or any other federal court.

(Source: P.A. 82-547.)
 
(210 ILCS 40/10) (from Ch. 111 1/2, par. 4160-10)
Sec. 10.

The Director or his authorized designee may conduct an
audit or other examination of the financial affairs of any provider as often as he
deems it necessary for the protection of the interests of the residents and the people
of this State, and for this purpose shall have access to the books, records,
financial data and other documents maintained by the facility.

(Source: P.A. 82-547.)
 
(210 ILCS 40/10.1)
Sec. 10.1.
Vaccinations.
(a) A facility shall annually administer a vaccination against influenza to
each resident, in accordance with the recommendations of the Advisory Committee
on
Immunization Practices of the Centers for Disease Control and Prevention that
are most recent to the time of vaccination, unless the vaccination is medically
contraindicated or the resident has refused the vaccine. Influenza vaccinations
for all residents
age 65 and over shall be completed by November 30 of each year or as soon as
practicable
if vaccine supplies are not available before November 1. Residents admitted
after November
30, during the flu season, and until February 1 shall, as medically
appropriate,
receive an influenza vaccination prior to or upon admission or as soon as
practicable if
vaccine supplies are not available at the time of the admission, unless the
vaccine is
medically
contraindicated or the resident has refused the vaccine. In the event that the
Advisory
Committee on Immunization Practices of the Centers for Disease Control and
Prevention determines that dates of administration other than those stated in
this Act are optimal to
protect the health of residents, the Department is authorized to develop rules
to mandate
vaccinations at those times rather than the times stated in this Act. A
facility shall
document in the resident's medical record that an annual vaccination against
influenza
was administered, refused or medically contraindicated.
(b) A facility shall provide or arrange for administration of a pneumococcal
vaccination to each resident who is age 65 and over, in accordance with the
recommendations of the Advisory Committee on Immunization Practices of the
Centers for Disease Control and Prevention, who has not received this
immunization prior to or upon admission to the facility, unless the resident
refuses the offer for vaccination or the vaccination is medically
contraindicated. A facility shall document in each resident's medical record
that a vaccination against pneumococcal pneumonia was offered and administered,
refused, or medically contraindicated.

(Source: P.A. 93-384, eff. 7-25-03.)
 
(210 ILCS 40/10.2)
Sec. 10.2. Facility employee assistance programs. A facility shall ensure that nurses employed by the facility are aware of employee assistance programs or other like programs available for the physical and mental well-being of the employee. The facility shall provide information on these programs, no less than at the time of employment and during any benefit open enrollment period, by an information form about the respective programs that the nurse must sign during onboarding at the facility. The signed information form shall be added to the nurse's personnel file. The facility may provide this information to nurses electronically.

(Source: P.A. 102-1007, eff. 1-1-23.)
 
(210 ILCS 40/11) (from Ch. 111 1/2, par. 4160-11)
Sec. 11.

The Department may deny the application for permit or revoke
or suspend an existing permit for violation of any provision of this Act.
The provisions of The Illinois Administrative Procedure Act and the Administrative
Review Law as now or hereafter amended shall apply to all proceedings under this Act.

(Source: P.A. 82-783.)
 
(210 ILCS 40/12) (from Ch. 111 1/2, par. 4160-12)
Sec. 12.

After July 1, 1982, any person acting in the capacity of a
provider who enters into a life care contract, or extends the term of
an existing life care contract, without first having been issued a permit
by the Department or without otherwise acting in compliance with the provisions
of this Act, shall be guilty of a Class A misdemeanor.

(Source: P.A. 82-547.)

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