ILCS » Chapter 20 · Act 3960
Illinois Compiled Statutes

20 ILCS 3960/5 (2026)

Construction, modification, or establishment of health care facilities or acquisition of major medical equipment; permits or exemptions

✓ current as of May 2026
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(20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
    (Section scheduled to be repealed on December 31, 2029)
    Sec. 5. Construction, modification, or establishment of health care facilities or acquisition of major medical equipment; permits or exemptions. No person shall construct, modify or establish a health care facility or acquire major medical equipment without first obtaining a permit or exemption from the State Board. The State Board shall not delegate to the staff of the State Board or any other person or entity the authority to grant permits or exemptions whenever the staff or other person or entity would be required to exercise any discretion affecting the decision to grant a permit or exemption. The State Board may, by rule, delegate authority to the Chairman to grant permits or exemptions when applications meet all of the State Board's review criteria and are unopposed.
    A permit or exemption shall be obtained prior to the acquisition of major medical equipment or to the construction or modification of a health care facility which:
        (a) requires a total capital expenditure in excess of
    
the capital expenditure minimum; or
        (b) substantially changes the scope or changes the
    
functional operation of the facility; or
        (c) changes the bed capacity of a health care
    
facility by increasing the total number of beds or by distributing beds among various categories of service or by relocating beds from one physical facility or site to another by more than 20 beds or more than 10% of total bed capacity as defined by the State Board, whichever is less, over a 2-year period.
    A permit shall be valid only for the defined construction or modifications, site, amount and person named in the application for such permit. The State Board may approve the transfer of an existing permit without regard to whether the permit to be transferred has yet been financially committed, except for permits to establish a new facility or category of service. A permit shall be valid until such time as the project has been completed, provided that the project commences and proceeds to completion with due diligence by the completion date or extension date approved by the Board.
    A permit holder must do the following: (i) submit the final completion and cost report for the project within 90 days after the approved project completion date or extension date and (ii) submit annual progress reports no earlier than 30 days before and no later than 30 days after each anniversary date of the Board's approval of the permit until the project is completed. To maintain a valid permit and to monitor progress toward project commencement and completion, routine post-permit reports shall be limited to annual progress reports and the final completion and cost report. Annual progress reports shall include information regarding the committed funds expended toward the approved project. For projects to be completed in 12 months or less, the permit holder shall report financial commitment in the final completion and cost report. For projects to be completed between 12 to 24 months, the permit holder shall report financial commitment in the first annual report. For projects to be completed in more than 24 months, the permit holder shall report financial commitment in the second annual progress report. The report shall contain information regarding expenditures and financial commitments. The State Board may extend the financial commitment period after considering a permit holder's showing of good cause and request for additional time to complete the project.
    The Certificate of Need process required under this Act is designed to restrain rising health care costs by preventing unnecessary construction or modification of health care facilities. The Board must assure that the establishment, construction, or modification of a health care facility or the acquisition of major medical equipment is consistent with the public interest and that the proposed project is consistent with the orderly and economic development or acquisition of those facilities and equipment and is in accord with the standards, criteria, or plans of need adopted and approved by the Board. Board decisions regarding the construction of health care facilities must consider capacity, quality, value, and equity. Projects may deviate from the costs, fees, and expenses provided in their project cost information for the project's cost components, provided that the final total project cost does not exceed the approved permit amount. Project alterations shall not increase the total approved permit amount by more than the limit set forth under the Board's rules.
    The acquisition by any person of major medical equipment that will not be owned by or located in a health care facility and that will not be used to provide services to inpatients of a health care facility shall be exempt from review provided that a notice is filed in accordance with exemption requirements.
    Notwithstanding any other provision of this Act, no permit or exemption is required for the construction or modification of a non-clinical service area of a health care facility.
(Source: P.A. 100-518, eff. 6-1-18; 100-681, eff. 8-3-18.)

    
Notes of Decisions
Cited in 22 cases, 1995–2016 · leading case: Provena Health v. Illinois Health Facilities Plan. Bd., 886 N.E.2d 1054 (Ill. App. Ct. 2008).
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Provena Health v. Illinois Health Facilities Plan. Bd., 886 N.E.2d 1054 (Ill. App. Ct. 2008). · cites it 2× “20 ILCS 3960/12(1), (4) (West 2004). The Department shall “[r]eview applications for permits and exemptions in accordance with the standards, criteria, and plans of need established by the State Board under this Act and certify its finding to the State Board.”
Pierce Downer's Heritage All. v. Vill. of Downers Grove, 704 N.E.2d 898 (Ill. App. Ct. 1998). · cites it 4× “Advocate also applied to the Board for a certificate of need pursuant to sections 5 and 6 of the Illinois Health Facilities Planning Act (20 ILCS 3960/5, 6 (West 1996)). On May 6, 1996, Advocate requested a consultation with the IDNR pursuant to section 11 of the Illinois…”
Am. Fed'n of State, Cnty. & Mun. Employees, Council 31 v. Ryan, 807 N.E.2d 1235 (Ill. App. Ct. 2004). · cites it 3× “(West 2002)), which require a permit from the Health Facilities Planning Board (Planning Board) before any health facility can be modified (20 ILCS 3960/5 (West 2002)). They contend that (1) the plaintiffs lack standing to bring the instant action, (2) some plaintiffs are barred…”
Marion Hosp. Corp. v. Illinois Health Facilities Plan. Bd., 777 N.E.2d 924 (Ill. 2002). · cites it 2× “(West 1998)), 1 any person wishing to “construct, modify or establish a health care facility” (20 ILCS 3960/5 (West 1998)) must first obtain a permit from the Health Facilities Planning Board (the Board) (see 20 ILCS 3960/3 (West 1998) (establishing the Board)).”
Marion Hosp. Corp. v. Illinois Health Facilities Plan. Bd., 753 N.E.2d 1104 (Ill. App. Ct. 2001). “•3 Any individual wishing to construct a health care facility in Illinois must first obtain a permit from the Board pursuant to the Illinois Health Facilities Planning Act (Planning Act) (20 ILCS 3960/5 (West 1998)). The Planning Act provides that the Board shall approve and…”
Springwood Assocs. v. Health Facilities Plan. Bd., 646 N.E.2d 1374 (Ill. App. Ct. 1995). “(20 ILCS 3960/5 (West 1992).) Applications for a permit or exemption are to be made on forms provided by the Board and are to contain such information as the Board deems necessary.”
Marion Hosp. Corp. v. Health Facilities Plan. Bd., 746 N.E.2d 880 (Ill. App. Ct. 2001). “20 ILCS 3960/5 (West 1998). The Board shall approve the issuance of a permit if it finds that the applicant is fit, willing, and able to provide a proper standard of health care for the community and that the project is economically feasible, consistent with the public interest,…”
Cathedral Rock of Granite City, Inc. v. Illinois Health Facilities Plan. Bd., 720 N.E.2d 1113 (Ill. App. Ct. 1999). “20 ILCS 3960/5 (West 1998). The Illinois Department of Public Health (Department) serves as administrative and staff support for the Board.”
Dimensions Med. Ctr., Ltd. v. Advanced Ambulatory Surgical Ctr., Inc., 712 N.E.2d 880 (Ill. App. Ct. 1999). “20 ILCS 3960/5 (West 1996). The Act affords an opportunity for a public hearing so that the applicant and any interested person may present public testimony concerning the approval or denial of the permit.”
Palos Cmty. Hosp. v. Illinois Health Facilities Plan. Bd., 765 N.E.2d 1187 (Ill. App. Ct. 2002). · cites it 5× “) 20 ILCS 3960/5 (West 2000). Next, what is a “health care facility”? Although the Board admits in its brief and at oral argument that the center is not a “health care facility,” the Act itself is dispositive.”
Am. Fed'n of State, Cnty., & Mun. Employees, Council 31 v. Ryan, 332 Ill. App. 3d 866 (Ill. App. Ct. 2002). · cites it 2× “Section 5 of the Planning Act (20 ILCS 3960/5 (West 2000)) provides that no person may construct or modify a health-care facility without first obtaining a permit from the Planning Board.”
Am. Fed. of State, Cnty. v. Ryan, 773 N.E.2d 739 (Ill. App. Ct. 2002). “Section 5 of the Planning Act (20 ILCS 3960/5 (West 2000)) provides that no person may construct or modify a health-care facility without first obtaining a permit from the Planning Board.”
Show all 22 citing cases →
— 20 ILCS 3960/5(b) — 2 cases
Am. Fed'n of State, Cnty. & Mun. Employees, Council 31 v. Ryan, 807 N.E.2d 1235 (Ill. App. Ct. 2004). “(West 2002)), which require a permit from the Health Facilities Planning Board (Planning Board) before any health facility can be modified (20 ILCS 3960/5 (West 2002)). They contend that (1) the plaintiffs lack standing to bring the instant action, (2) some plaintiffs are barred…”
Am. Fed'n of State, Cnty. & Mun. Employees v. Ryan (Ill. App. Ct. 2004).
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