IL SB3797

Amends the Illinois Public Aid Code to modify how Medicaid inpatient utilization rates are calculated for determining eligibility for inpatient adjustment payments, effective October 1, 2026 for rate year 2027 and after.

Excludes from the utilization rate calculation all days of care funded by the U.S. Department of Veterans Affairs, including authorized VA community care at non-VA hospitals.

Applies only to hospitals operating from more than one location within contiguous counties under a single license, where the original location was in a county with fewer than 125,000 inhabitants and the second facility is in a contiguous county with fewer than 235,000 inhabitants.

Takes effect immediately upon becoming law.