Hospital and Healthcare Transformation Capital Investment Program

Hospital and Healthcare Transformation Capital Investment Program is a grant from the Illinois Capital Development Board and Illinois Department of Healthcare and Family Services that funds capital projects at hospitals and healthcare institutions participating in Illinois' Hospital and Healthcare Transformation Collaborative.

Part of a $200 million statewide initiative, the program supports facility upgrades, equipment acquisition, and infrastructure improvements that enable healthcare transformation. Eligible applicants are hospitals and healthcare institutions demonstrating alignment with the Collaborative's goals. Funding is awarded through the AmpliFound grants management platform, and applicants can direct questions to HFS.

HTCManager@illinois. gov.

CSFA | GATA | Illinois. gov Healthcare Transformation Capital Investment Grants Capital Development Board (511) HTC Email Account Amplifund Questions: 216-377-5500 HFS. HTCManager@illinois.

gov Capital project funding as part of the Hospital and Healthcare Transformation Collaborative program. Illinois Statue Authorization Illinois Administrative Rules Authorization The Transformation Capital Investment Grant Program is designed to address some of the capital needs of the initiatives funded under the Healthcare Transformation Program.

Initiatives shall be specifically designed to improve healthcare outcomes and reduce healthcare disparities, and improve the coordination, effectiveness, and efficiency of care delivery. 1. Timely Billing Required.

Grantee must submit any payment request after completion of the payment milestones identified in Exhibit C of the Grant Agreement. Grantee is not required to submit pay requests at the end of each quarter as indicated in the Agreement. 2.

Business Enterprise for Minorities, Women, and Persons with Disabilities Act. For projects $250,000 and over, CDB will place goals for the utilization of businesses owned by minorities and woman. The applicable goals will be determined by CDB based on the size and location of the project.

Grantee agrees to endeavor to meet any applicable goals and agrees to coordinate the meeting of these goals with CDB’s Fair Employment Practices Unit and to provide documentation of its good faith efforts to meet those percentages in the event that 3. Additional Legal Requirements. (a) All project procurements shall be in accordance with applicable law, including but not limited to 2 CFR Part 200.

(b) Grantee agrees to comply with the Business Enterprise for Minorities, Women, and Persons with Disabilities Act (30 ILCS 575), the Illinois Accessibility Code (71 Ill. Admin. Code 400), and the Employee Classification Act (820 ILCS 185).

(c) Grantee agrees to comply in all respects with the Illinois State Agency Historic Resources Act (20 ILCS 3420) and the Archaeological and Paleontological Resources Protection Act (20 ILCS 3435) and hereby accepts the assignment of any duties Grantor has or may have under the Acts. (d) Grantee agrees to comply in all respects with Executive Order 2006-05, Construction Activities in Special Flood Hazard Areas, if applicable. (www.

illinois. gov/Government/ExecOrders/Documents/2006/execorder2006-5.

pdf) (e) If the Grantee’s project(s) and/or land development(s) fall under the requirements of the Farmland Preservation Act (505 ILCS 75), the Interagency Wetland Policy Act of 1989 (20 ILCS 830), the Illinois Natural Areas Preservation Act (525 ILCS 30), and/or the Illinois Endangered Species Protection Act (520 ILCS 10), Grantee hereby accepts the assignment of any duties Grantor has or may have under those, and prior to beginning any construction, Grantee shall provide Grantor with proof of compliance.

In the alternative, Grantee certifies that the project(s) and/or land development(s) is not impacted by the statutes identified herein. (f) Grantee agrees to comply with Prohibition on Use of Grant Funds for Prohibited Political Activities in the Illinois Grant Funds Recovery Act (30 ILCS 705/4. 3).

(g) All contracts for the construction of fixed works which are financed in whole or in part with funds provided by this Agreement shall include a project labor agreement. Each such project labor agreement shall comply with the requirements of Section 25 of the Project Labor Agreements Act (30 ILCS 571/25). (h) Grantee agrees to comply with the Illinois Works Jobs Program Act Apprenticeship Initiative (30 ILCS 559/20-20).

i. Applicable Goal: For projects with an estimated total project cost of $500,000 or more and for which 50 percent or more of the project is being funded by appropriated capital funds, the 10 percent apprenticeship goal applies to all prevailing wage eligible work on the project.

For projects receiving $500,000 or more of appropriated capital funds but for which the appropriated capital funds are less than half of the total project costs, the 10 percent apprenticeship goal only applies to prevailing wage eligible work being funded by the appropriated capital funds.

The 10 percent apprenticeship goal does not apply to projects with an estimated total project cost of less than $500,000 or to projects with an estimated total project cost of $500,000 or more but for which the appropriated capital funds for the project are both less than $500,000 and less than 50 percent of the estimated total project costs. ii.

Budget Supplement: Grantee shall submit the Illinois Works Jobs Program Act Apprenticeship Initiative Budget Supplement as identified in the Payment Milestones in the Grant Agreement. The Budget Supplement shall contain a complete and thorough estimate of all the labor hours for the project, broken down by prevailing wage category. iii.

Reporting Requirements: When Apprenticeship Initiative goals are applicable, grantee shall submit quarterly reports of the hourly workforce utilization including all apprenticeship hours using Illinois Works Apprenticeship Initiative Reporting Forms. Reports shall be submitted on the dates provided in the grant agreement. iv.

Reduction or Waiver of Goal. If, at any point during the project when goals are applicable, grantee determines that the apprenticeship goal for any prevailing wage classification may not be met, Grantee shall submit a request for a reduction or waiver of that particular goal, indicating why the goal may not be met. Grantee shall include all documentation supporting the request.

v. Certification of Completion. Upon completion of the work set forth in the Grant Agreement, when goals are applicable, Grantee shall submit a certification demonstrating that the 10% apprenticeship goal has been met or that Grantee received a reduction or waiver of the 10% apprenticeship goal for each prevailing wage classification.

In the event that work on the project extends beyond the term of the Grant Agreement, Grantee shall submit an additional certification upon completion of all project work. 4. Bonding Requirements.

If Grantee does not have established procedures and contractual provisions requiring construction contractors to provide bonds, Grantor encourages Grantee to require construction contractors to obtain a bid bond in the amount of ten percent of the bid, a performance bond in the full amount of the bid, and a separate labor and materials payment bond in the full amount of the bid. 5. Retainage.

Grantor encourages the following policy for retainage on construction contracts to ensure timely payments to contractors: “Retainage, 10 percent of the contract sum, may be reduced to 5 percent of the contract sum on all portions of work after completion of the work equals to 50 percent of the contract sum upon written request by the contractor and written approval of the Grantee and the contractor’s surety.

Retention may not be reduced if the contract is behind the approved schedule, including extension or substantial claims are outstanding against the contractor or for other causes related to nonperformance. ” 6. Prohibition on Administrative Costs.

Grant funds shall not be spent for Grantee’s administrative costs and expenses, whether incurred as an officer, employee, or on a contractual basis. Indirect Costs may not be charged to the Award. All expenses must be bondable capital improvements.

7. Use and Ownership of Facility. Grantee must comply with the requirements of 2 CFR 200.

311 for any real property acquired or improved using Grant Funds. Applicant must be enrolled with the Department of Healthcare and Family Services as a Medicaid enrolled provider. An entity may not apply for a grant until the entity has registered and pre-qualified through the Grant Accountability and Transparency Act (GATA) Grantee Portal, www.

grants. illinois. gov/portal.

Registration and pre-qualification are required annually. Credentials / Documentation An entity may not apply for a grant until the entity has registered and pre-qualified through the Grant Accountability and Transparency Act (GATA) Grantee Portal. Preapplication Coordination Submissions will be accepted via the State of Illinois Grant Management System.

Criteria Selecting Proposals At least 20% of funds awarded for the Capital Program shall be awarded to Projects involving one or more Safety Net Hospitals as defined by 305 ILCS 5/5-5e. 1. e.

Priority consideration shall be given to Critical Access Hospitals, which are Illinois hospitals designated as a critical care hospital by the Department of Public Health in accordance with 42 CFR 485, Subpart F; communities that experience significant health disparities aggravated by social determinants of health and insufficient health resources determined by the social vulnerability index published by the Centers for Disease Control and Prevention; and applicants involved in the Services Program pursuant to Section 14-12(d-5) of the Illinois Public Aid Code.

Awards will be selected by merit based review process.

Funds are disbursed following industry standard construction milestone achievements on the following sample schedule: Execution of Agreement: 10% of award Completion of Construction Documents: 20% of award Bid award and acceptance of Fair Employment Practices requirements: 20% of award Construction reaching 50% completion: 40% of award Substantial Completion: final 10% of award Actual milestones may differ depending on the requirements of the project.

Deadline to apply July 1, 2024, 5:00 pm CST Range of Approval or Disapproval Time Competitive grant appeals are limited to the evaluation process. Evaluation scores may not be protested. Only the evaluation process is subject to appeal.

Submission of Appeal - An appeal must be submitted in writing in accordance with the grant application document. An appeal must be received within fourteen calendar days after the date that the grant award notice has been published. The written appeal shall include at a minimum the following: i.

the name and address of the appealing party ii. identification of the grant iii. a statement of reasons for the appeal The grant term will be five years.

Renewals are not permitted. No-cost extension requests may be considered. Formula Matching Requirements No portion of a healthcare transformation capital investment program grant awarded under this Section (20 ILCS 3105/20) may be used by a hospital or other healthcare provider to pay for any on-going operational costs, pay outstanding debt, or be allocated to an endowment or other invested fund.

All purchases made with grant funds must be bondable. Allowable costs and activities include the following: • Acquisition and installation of allowable equipment • Appraisals from a licensed appraiser • Architectural and engineering services by licensed individuals • Bid bonds and performance and payment bonds.

A bid bond or guarantee is a form of security assuring that the bidder will not withdraw a bid within the period specified for acceptance and will execute a written contract and furnish required bonds.

Performance bonds secure fulfillment of all the contractor's obligations under the contract and payment bonds assure payment as required by law to all persons supplying labor and material in the execution of the work provided for in the contract. • Contingency fund. To provide for unanticipated costs, applicants for construction grants may include a project contingency amount with the initial total allowable cost estimates.

The construction contingency is an allowance for cost growth that may occur during construction as a result of unexpected circumstances or incomplete design documents. CDB recommends no more than 10% of the construction budget for contingency. Any unused contingency funds set aside from the grant award must be spent on other, approved direct project costs or returned.

• General conditions (e.g., moveable site trailers, port-a-johns, hard hats, temporary or limited duration signage, security costs during construction). • Inspection and commissioning fees. • Insurance.

Costs of builder’s risk insurance, title insurance, physical destruction insurance, and liability insurance are generally allowable. Builder's risk insurance and title insurance may be charged to the grant in proportion to the amount of State participation in the property. • Legal fees.

Legal fees related to obtaining a legal opinion regarding title to a site. • Pre-award costs. Costs incurred before award for architect's fees, consultant's fees, and environmental analysis necessary for the planning and design of the project are allowable if the project is subsequently approved and funded.

Pre- award construction costs are generally unallowable. • Site survey and soil investigation and any necessary remediation. • Site clearance.

Site clearance costs are allowable if they are reflected in the bid. Grantees are required to submit financial and performance reports. Additional reports on the utilization of apprentices may also be required.

Grantee must comply with the audit requirements listed in Administrative Rule, 44 Illinois Administrative Code 7000. 90. Grantees must retain all records related to the project for no less than three years following completion of the project.

Range and Average of Financial Assistance $5 Million to $80 Million Results of this grant program will improve healthcare outcomes and reduce healthcare disparities, and improve the coordination, effectiveness, and efficiency of care delivery. The Transformation Capital Investment Grant Program is designed to address some of the capital needs of the initiatives funded under the Healthcare Transformation Program.

Regulations, Guidelines, and Literature https://www. ilga. gov/legislation/ilcs/ilcs5.

asp? ActID=362 https://witnessslips. ilga.

gov/legislation/ilcs/ilcs4. asp?

DocName=030500050HArt%2E+II&ActID=1413&ChapterID=28&SeqStart=1500000&SeqEnd=3600000 Regional or Local Assistance Location Capital Development Board Healthcare Transformation Collaboratives Indirect Cost Limitations; Uniform Agreement; Agency ID Grantee Name Comptroller Name Start Date End Date Amount HTC004 Heritage Behavioral Health Center, Inc. HERITAGE BHVRL HEALTH CTR INC 03/01/2025 02/28/2030 43,841,650 HTC013 Board of Trustees of the University of Illinois (University of Illinois at Chicago) UNIVERSITY OF ILLINOIS 03/01/2025 02/28/2030 32,999,632 HTC005 Insight Chicago Inc. INSIGHT CHICAGO INC 03/01/2025 02/28/2030 22,475,000 HTC007 Lifelong Access LIFELONG ACCESS 03/01/2025 02/28/2030 21,700,000 HTC012 Touchette Regional Hospital TOUCHETTE REGIONAL HOSP 03/01/2025 02/28/2030 15,000,000