IL SB3942

Amends the Illinois Public Aid Code to establish penalty payments for hospitals that fail to meet $40,000,000 in reduced expenditures related to preventable readmissions by June 30, 2013.

Department of Public Health shall assess penalty payments equal to one-half the differential between a hospital's actual readmission liability and its established threshold for hospitals not meeting reduction targets.

Penalty payments shall be deposited into the Healthcare Provider Relief Fund, and penalties shall be doubled if Centers for Medicare and Medicaid Services determines the payments constitute an impermissible healthcare-related tax.

Defines expenditures subject to the penalty provisions as General Revenue Fund-based expenditures only.

Takes effect immediately upon enactment.