Funding for Hospital Improvement Projects

  The State of IL has enacted new legislation granting the Illinois Department of Public Health (“DPH”), the ability to award grants for improving, renovating, or replacing the hospital’s equipment and technology.  See. 20 ILCS 2310/2310-640(a).  Such projects may be for a variety of hospital concerns such as, safety standards, building codes, maintaining or improving buildings, improving health information technology, or patient safety.  Id.

 A hospital that meets the criteria is eligible to receive a grant of not less than $2,500,000 or more than $7,000,000.  20 ILCS 2310-640 (b).  For a hospital that does not meet the criteria, DPH may make a one time capital grant to any public or not for profit hospital located in counties of less than 3,000,000 in habitants.  20 ILCS 2310/2310-640 (c). 

 Eligible hospitals must have a Medicaid inpatient utilization rate of ten (10) percent for the rate year beginning October 1, 2008.  The grant consists of a base payment of $170,000 for each acute hospital in an urban area, or $340,000 if located in a rural area.  In addition, the hospital may be awarded $45 multiplied by the number of total Medicaid inpatient days for each hospital. 

 This new source of funding is not only an important consideration for hospitals, but also for established and new construction, technology, and consulting companies that provide services to hospitals.  If you have any concerns or questions regarding this new source of funding for hospitals, then please feel free to contact us.

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