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HB 3674

ANNUAL HOSPITAL REPORT

104th Regular Session Introduced by Kimberly Du Buclet

Illinois HB 3674 requires hospitals to annually report capital expenditures and supplier-diversity data; public posting to boost transparency and vendor access.

House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
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Bill Summary · HB 3674

HB 3674 — Annual Hospital Report (Rep. Kimberly Du Buclet)

Status: House Committee Amendment No. 1 filed 3/19/2025; Re‑referred to Rules Committee. Introduced 2/18/2025.

Purpose / Intent

Amend Section 5.3 of the Illinois Health Facilities Planning Act to (1) broaden and standardize annual reporting of hospital capital expenditures and related purchasing data and (2) require supplier‑diversity reporting for larger hospitals (including goals, actuals, outreach plans, and vendor contact/certification information). The amendment also directs public posting of reports and contact information to increase transparency and vendor access.

Key provisions

  • Reporting scope

    • Changes the current threshold approach so the State Board shall require each health care facility to submit an annual report of capital expenditures (the introduced version removes the prior “expenditures in excess of $200,000” threshold).
    • Annual report must include: brief description of each capital expenditure, amount and financing method, certificate of need project number (if reviewed), and total capital expenditures committed in the year.
    • Data must be collected as part of the State Board’s Annual Questionnaires or supplements and should not duplicate other existing data collections.

  • Supplier diversity and purchasing data (subsection (b))

    • Defines (or attempts to define) “capital expenditures” and “professional service expenditures” (examples include contract information/data processing, legal, tax preparation, purchasing services).
    • Hospitals subject to the University of Illinois Hospital Act or Hospital Licensing Act with more than 100 beds (and other hospitals meeting the capital‑expenditure reporting threshold) must additionally report supplier‑diversity information for reported capital and professional service expenditures.
    • Required supplier‑diversity elements (to be reported as percentages of total expenditures where indicated):
    • Spending goals and actual spending with female‑, minority‑, veteran‑owned, and small business enterprises (percent of total capital and professional service expenditures).
    • Types of expenditures targeted for supplier diversity in the following year.
    • Outreach/encouragement plan for diverse suppliers.
    • Challenges locating qualified vendors and suggested assistance the Health Facilities and Services Review Board (HFSRB) could provide.
    • List of vendor certifications the hospital recognizes.
    • Point‑of‑contact and vendor enrollment process.
    • Success stories / best practices.
    • Hospitals may submit a system‑wide report covering multiple hospitals; if State‑specific data are unavailable, national data should be provided with explanation.

  • Public access and non‑use for regulation

    • The Department/CMS shall (subject to appropriation) hold an annual public workshop on supplier diversity.
    • The HFSRB must publish a database on its website with each hospital’s supplier‑diversity point of contact and recognized certifications, and must publish and retain each annual report for at least 5 years.
    • Information reported under this section may not be used by the HFSRB in permit/exemption reviews or other regulatory actions under the Act.

Who is affected

  • All Illinois health care facilities (expanded reporting language suggests every facility will report capital expenditures).
  • Hospitals with >100 beds (or those otherwise meeting the capital reporting threshold) are specifically required to submit supplier‑diversity metrics and professional‑services reporting.
  • Female‑, minority‑, veteran‑owned, and small business enterprises—greater transparency and potential contracting opportunities.
  • State agencies (Health Facilities & Services Review Board, Department/CMS) for data collection, publication, and convening workshops.

Timeline / Implementation

  • The statute section remains scheduled for repeal on December 31, 2029 (per existing act language).
  • Reports required for fiscal years that begin at least 6 months after the effective date of the amendatory Act.
  • Certain professional service reporting elements (subparagraphs C and D of paragraph (3) in the amendment) are specified to be submitted starting fiscal year 2026 and for each fiscal year thereafter.
  • CMS workshops tied to appropriation.

Potential impacts

  • Increased administrative and compliance burden on hospitals and health systems to collect and report detailed expenditure and vendor‑diversity data.
  • Greater public transparency on hospital contracting and procurement practices; a centralized contact/certification database may improve access for diverse suppliers.
  • The prohibition on using these data in permit decisions limits regulatory consequences from the information; primary effect is disclosure and monitoring rather than regulatory sanction.

Procedural status

  • Filed Feb 18, 2025. First read and referred through committees; House Amendment No. 1 filed 3/19/2025 and the bill has been re‑referred to Rules Committee (most recent status: House Committee Amendment No. 1 Rule 19(c) / Re‑referred to Rules Committee, 3/21/2025).

Compiled from official sources — confirm details with the bill’s official record.

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