Section 305 ILCS 5/5-5.5 - Elements of Payment Rate(a) The Department of Healthcare and Family Services shall develop a prospective method for determining payment rates for nursing facility and ICF/DD services in nursing facilities composed of the following cost elements: (1) Standard Services, with the cost of this component being determinedby taking into account the actual costs to the facilities of these servicessubject to cost ceilings to be defined in the Department's rules. (2) Resident Services, with the cost of this component beingdetermined by taking into account the actual costs, needs and utilizationof these services, as derived from an assessment of the resident needs inthe nursing facilities. (3) Ancillary Services, with the payment rate being developed for each individual type of service. Payment shall be made only whenauthorized under procedures developed by the Department of Healthcare and Family Services. (4) Nurse's Aide Training, with the cost of this component beingdetermined by taking into account the actual cost to the facilities ofsuch training. (5) Real Estate Taxes, with the cost of this component beingdetermined by taking into account the figures contained in the mostcurrently available cost reports (with no imposition of maximums) updatedto the midpoint of the current rate year for long term care servicesrendered between July 1, 1984 and June 30, 1985, and with the cost of thiscomponent being determined by taking into account the actual 1983 taxes for which the nursing homes were assessed (with no imposition of maximums)updated to the midpoint of the current rate year for long term care services rendered between July 1, 1985 and June 30, 1986. (b) In developing a prospective method for determining payment ratesFor nursing facility and ICF/DD services in nursing facilities and ICF/DDs,the Department of Healthcare and Family Services shall consider the following cost elements: (1) Reasonable capital cost determined by utilizing incurred interestrate and the current value of the investment, including land, utilizingcomposite rates, or by utilizing such other reasonable cost related methods determined by the Department. However, beginning with the ratereimbursement period effective July 1, 1987, the Department shall beprohibited from establishing, including, and implementing any depreciationfactor in calculating the capital cost element. (2) Profit, with the actual amount being produced and accruing tothe providers in the Form of a return on their total investment, on thebasis of their ability to economically and efficiently deliver a typeof service. The method of payment may assure the opportunity for aprofit, but shall not guarantee or establish a specific amount as a cost. (c) The Illinois Department may implement the amendatory changes tothis Section made by this amendatory Act of 1991 through the use ofemergency rules in accordance with the provisions of Section 5.02 of the Illinois Administrative Procedure Act. for purposes of the IllinoisAdministrative Procedure Act, the adoption of rules to implement the amendatory changes to this Section made by this amendatoryAct of 1991 shall be deemed an emergency and necessary for the publicinterest, safety and welfare. (d) No later than January 1, 2001, the Department of Public Aid shall filewith the Joint Committee on Administrative Rules, pursuant to the IllinoisAdministrative ProcedureAct,a proposed rule, or a proposed amendment to an existing rule, regarding paymentFor appropriate services, including assessment, care planning, dischargeplanning, and treatment provided by nursing facilities to residents who have a serious mentalillness. (e) On and after July 1, 2012, the Department shall reduce any rate of reimbursement for services or other payments or alter any methodologies authorized by this Code to reduce any rate of reimbursement for services or other payments in accordance with Section 5-5e.Amended by P.A. 097-0689,§ 75, eff. 6/14/2012.Amended by P.A. 096-1530,§ 30, eff. 2/16/2011.Amended by P.A. 096-1123,§ 10, eff. 1/1/2011.Amended by P.A. 095-0331,§ 795, eff. 8/21/2007.Amended by P.A. 093-0632, § 110, eff. 2/1/2004.P.A. 86-651; 86-705; 86-1028; 87-14; 87-435; 91-799, eff. 6-13-00.