Jordan Ellis
In Illinois, hospitals are required to obtain a license to operate, and these licenses are issued by the Illinois Department of Public Health under the Hospital Licensing Act. The process involves submitting an application, which includes a Certificate of Need Permit or a Certificate of Exemption, and meeting specific requirements outlined in the Illinois Hospital Licensing Requirements. Notably, hospital licenses in Illinois are not transferable or assignable. They are valid only for the specific location and licensee stated in the application. This means that any changes in the legal identity of the licensee, such as a transfer of ownership, are considered the establishment of a new hospital, requiring adherence to the relevant sections of the Illinois Administrative Code.
| Characteristics | Values |
|---|---|
| License fee for a critical access hospital | $0 per bed |
| License fee for a Safety-Net Hospital | $0 per bed |
| License validity | 1 year |
| Renewal license requirements | Hospitals must meet licensing requirements as determined by an ongoing review of reports, surveys, and recommendations |
| License transferability | Not transferable |
| License issuance for a new hospital | Requires a Certificate of Need Permit (CON) or Certificate of Exemption from Certificate of Need (COE) issued by the Health Facility Planning Board |
| License issuance for a new hospital construction | Requires architectural plans and specifications |
| Provisional license issuance | May be issued to hospitals that do not fully comply with the provisions of the Act, provided that health and safety of patients are protected |
| Rural Emergency Hospital (REH) license | Applicable for emergency department services, observation care, and outpatient medical services where the average length of stay does not exceed 24 hours |
| Applicant and licensee | "Person" as defined in Section 3(B) of the Act, responsible for meeting licensing requirements |
| Places requiring a license | All places that are defined as hospitals in Section 3 of the Act, excluding those specifically excluded |
| Illinois Hospital Licensing Act definitions | Includes Advanced Practice Registered Nurse, Advanced Practice Provider, Allied Health Personnel, Dentist, and House Staff Member |
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What You'll Learn
Hospital licenses are not transferable or assignable
In Illinois, hospital licenses are not transferable or assignable. This means that a license is issued to a specific licensee for a specific location and cannot be transferred to another party or location. The Illinois Department of Public Health oversees the licensing of hospitals in the state, and the regulations are outlined in the Illinois Hospital Licensing Act and the Illinois Administrative Code.
The process of obtaining a hospital license in Illinois begins with submitting an application to the Department. The application must include a Certificate of Need Permit (CON) or a Certificate of Exemption from Certificate of Need (COE), as well as architectural plans and specifications if constructing a new hospital. The Director will review the application and issue a permit if it is complete and meets the necessary requirements.
Licenses are typically valid for a period of one year and must be renewed by paying the annual license fee before the expiration of the current license. If a hospital needs to change its name or location, it must notify the Department prior to making any changes. In the case of a name change, a new license certificate will be issued. For a change in location, the hospital must meet the requirements outlined in the relevant sections of the Illinois Administrative Code.
It is important to note that a change in the legal identity of the licensee, such as a transfer of ownership or a change in the hospital license category, constitutes the establishment of a new hospital. In such cases, the hospital must meet the requirements for establishing a new hospital, including applying for a new license. Additionally, the license fee varies depending on the type of hospital, with critical access hospitals and Safety-Net Hospitals having a license fee of $0 per bed.
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Requirements for a Rural Emergency Hospital license
In Illinois, a Rural Emergency Hospital (REH) is defined as a facility that operates to provide emergency department services, observation care, and other outpatient medical and health services. The annual per-patient average length of stay for an REH should not exceed 24 hours. Here are the requirements for obtaining and maintaining an REH license in Illinois:
Application and Issuance of a License:
The Illinois Department of Public Health is responsible for issuing licenses to operate hospitals in the state, including REHs. The license fee for an REH is determined by the Illinois Public Aid Code and may vary depending on the type of hospital. The license is valid for a period of one year, and renewal licenses are issued to hospitals that meet the licensing requirements.
Provisional License:
The Director may grant a provisional license to an REH that does not fully comply with all provisions if the hospital has initiated changes that will lead to substantial compliance. The health and safety of patients must be protected during the provisional license period. The Director will inform the licensee of the conditions under which the provisional license is granted and the timeline for completing the necessary changes.
Specific Requirements for REHs:
The REH license applies only to the number of beds and clinical services operating at the time the license is issued. If an REH plans to initiate a new clinical service, expand or discontinue an existing service, it must first obtain approval from the Department and the Health Facilities and Services Review Board. If a change in clinical service results in a change of license category, the REH must submit a new license application.
Non-Transferability of License:
It's important to note that an REH license is not transferable. Each license is specific to a particular licensee and location. If there are any changes in the licensee, name, or location of the REH, the Department must be notified. A change in the legal identity of the licensee, such as a transfer of ownership or a change in the hospital license category, constitutes the establishment of a new hospital, and the relevant requirements must be met.
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Provisional licenses for hospitals
In Illinois, the Director may issue a provisional license to a hospital that does not fully comply with the provisions of the Act. This is on the condition that the hospital has made changes and corrections that will bring it into compliance and that the health and safety of patients will be protected during the provisional license period. The Director will inform the licensee of the conditions under which the provisional license is granted, including how the hospital is not in compliance. They will also advise on the time frame for completing the necessary changes.
Provisional licenses are not transferable. Each license is distinct and is issued to a specific licensee for a specific location. The Department must be notified of any changes in the licensee, name, or location of a hospital. If a hospital changes its name, a new license certificate will be issued upon notification of the change.
If a hospital wishes to change location, it must meet the requirements of Section 250.110. A change in the legal identity of the licensee, such as a transfer of ownership or a change of hospital license category, constitutes the establishment of a new hospital. In this case, the hospital must also meet the requirements of Section 250.110.
Licenses issued under the Act are valid for one year. The Department will issue renewal licenses to hospitals that meet the licensing requirements as determined by ongoing reviews of reports, surveys, and recommendations. Prior to the expiration of a hospital's license, the Department will mail an invoice 60 days in advance. Except for hospitals excluded under subsections (d)(3)(A) and (B), the annual license fee shall be paid to the Department before the license expires.
The license fee for a critical access hospital, as defined in Section 5-5e(b)(4) of the Illinois Public Aid Code, is $0 per bed. Similarly, the fee for a Safety-Net Hospital, as defined in Section 5-5e.1, is also $0 per bed.
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License renewal process
In Illinois, hospital licenses are issued for a period of one year. The Illinois Department of Financial and Professional Regulation (IDFPR) allows for the renewal of licenses approximately 2-3 months before their expiration. The IDFPR License Lookup application can be used to find the expiration date of a license. If the renewal window is missed, the license must be reinstated by requesting a Reinstatement application from the IDFPR.
The Illinois Hospital Licensing Act outlines the requirements for obtaining a license to operate a hospital. The license fee for a critical access hospital or a Safety-Net Hospital is $0 per bed. The license is not transferable and is issued to a specific licensee for a specific location. If there is a change in the legal identity of the licensee, such as a transfer of ownership, it constitutes the establishment of a new hospital, and the requirements of Section 250.110 must be met.
The Director may issue a provisional license to a hospital that does not fully comply with the provisions of the Act, provided that the hospital undertakes changes to ensure compliance and protect the health and safety of its patients.
For physicians in Illinois, 150 hours of continuing medical education (CME) credit must be earned in a three-year re-licensure period. At the end of this period, physicians must renew their licenses by attesting to their compliance with state CME requirements through the IDFPR.
In 2023, Illinois physicians were required to complete CME hours in the following four topic areas:
- Safe Opioid Prescribing Training
- Sexual Harassment Prevention Training
- Emergency Department Violence Prevention Training
- Recognizing and Responding to Human Trafficking Training
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License fee for critical access hospitals
In Illinois, the license fee for a critical access hospital is $0 per bed. This is defined in Section 5-5e(b)(4) of the Illinois Public Aid Code. Licenses are valid for a period of one year, and the Department will issue renewal licenses to hospitals that meet the licensing requirements.
Critical Access Hospitals (CAHs) are rural hospitals that provide emergency department services, observation care, and other outpatient medical and health services. The average length of stay for patients is 24 hours or less. CAHs are eligible for cost-based reimbursement from traditional fee-for-service Medicare, and they may also receive reimbursement from Medicaid in some states.
CAHs have more flexible staffing requirements compared to general acute care hospitals. For instance, CAHs are not required to have a physician onsite, and they may close and have no nursing staff on duty if there are no inpatients. However, they must still comply with their state's licensure laws and other federal requirements.
In Illinois, hospitals are required to notify the Department prior to any change in the licensee, name, or location. A change in the legal identity, such as a transfer of ownership, constitutes the establishment of a new hospital, and the hospital must meet the relevant licensing requirements.
The Illinois Critical Access Hospital Network (ICAHN) offers leadership programs for board members and advanced practice nurses and physician assistants working in critical access hospitals or rural health clinics. Additionally, the state has a Critical Access Hospital Supplemental Payment Program and a Public Critical Access OB and Other Treatment Services Program.
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Frequently asked questions
No, a hospital license is not assignable in Illinois. Each license is separate and distinct and issued for a specific location.
Licenses issued under the Act are valid for one year. The Department will issue renewal licenses to hospitals that meet licensing requirements.
The license fee for a critical access hospital is $0 per bed. The license fee for a Safety-Net Hospital is also $0 per bed.
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