Illinois Administrative Code › Title 77 - PUBLIC HEALTH › Part 1100 - NARRATIVE AND PLANNING POLICIES › Subpart D - NEED ASSESSMENT › Section 1100.510 - Introduction, Formula Components, Planning Area Development Policies, and Distance Determinations

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Introduction
This Subpart details the policies and methodologies utilized
				  to assess the need for beds and services. The calculations and numeric results,
				  as well as the related data elements that pertain to the methodologies detailed
				  in this Subpart, are contained in the Inventory of Health Care
				  Facilities.
b) Formula
				Components
Formulas utilized by HFSRB in projecting the need for beds
				  and services can be categorized as demand based or incidence based need
				  formulas. Each of these formula types represents a different conceptual outlook
				  and incorporates different data elements as formula variables.
1) Demand Based Formula. Demand equations
				utilize the concept that what has occurred in the past will occur in the
				future. The formulas utilize inpatient days of care and population projections
				as the key data variables. The first formula step is to establish a utilization
				to population ratio (use rate). This ratio basically says that within a
				population an average number of inpatient days of care will be generated. This
				rate is then applied to the population projection for the same area. This
				states that if the rate of use is constant, a future population can be expected
				to generate an identifiable number of inpatient days. These projected days are
				then converted to a daily census (total projected patient days divided by days
				in year) and multiplied by an occupancy target. The projected day figure can be
				equated to 100% occupancy of service for which need is projected. An occupancy
				factor adjustment is applied to insure that sufficient beds exist to handle
				days when inpatient admissions are exceptionally high. This type of formula may
				also be adjusted by the application of minimum and maximum use rates in
				planning areas that lack facilities or certain types of beds or where a high
				concentration of beds and services has caused unnecessary duplication. These
				rates are controls and serve to inflate (minimum use rate) or deflate (maximum
				use rate) the projected bed need. These rates are established when historical
				patterns of use are influenced by a maldistribution of services. By adding to
				or subtracting from the number of needed beds, development of new beds and
				facilities can be influenced to add beds to underserved areas and to restrict
				bed growth in areas of high bed to population ratios.
2) Incidence Based Formula. This type of
				formula utilizes the incidence level of a disease or a condition within a
				population to predict need. Utilizing national or State rates, the formula
				predicts the number of planning area residents who will need hospitalization
				based on the number of people who live in the planning area. Utilizing a
				standard estimate of how long a patient will be hospitalized, admissions are
				converted into patient days. As in the demand formulas, days are then converted
				to an average daily census and an occupancy factor adjustment is applied to
				obtain area bed need.