New Hospital Behavioral Health Service Requirements Proposed
On Jan. 2, the Illinois Dept. of Public Health published a proposed rule (pp. 10-58) in the Illinois Register providing updates to outdated Sections of 77 Ill. Adm. Code 250 to align with current Department and industry procedures and the Hospital Licensing Act (210 ILCS 80/). The rulemaking changes references to “alcoholism and intoxication treatment” services to “substance use disorder” services; updates sections concerning public notifications, postings, and psychiatric services; updates and clarifies the definitions of various substance use disorder services and the titles of medical staff and personnel providing these services; and updates incorporated and referenced standards and documents, including incorporation of the American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition (DSM-5). 

The proposed rule does not incorporate American Society of Addiction Medicine (ASAM) criteria for substance use treatment services, which are the most widely used and comprehensive set of standards for placement, continued service, and transfer of patients with addiction and co-occurring conditions. In the past year, members on IHA’s Behavioral Health Advisory Forum have expressed a desire to reduce or eliminate separate service line licensure from hospital licensure, as have the Illinois State Medical Society and Illinois Society of Addiction Medicine. Based on discussions with the Illinois Dept. of Human Services, consolidation of substance use treatment licensure and/or Medicaid certification for services below level 4 medically managed inpatient treatment in a hospital (which are exempt from separate licensure) would be dependent on hospitals using ASAM criteria for all substance use services. 

If you have feedback on the application of ASAM criteria to all hospital substance use treatment services in order to justify the streamlining of hospital licensure or any other comments on the rule, please contact ldaniels@team-iha.org by Feb. 4. To provide direct comments on the proposed rule, letters may be submitted through Feb. 17 to dph.rules@illinois.gov. 

HHS Drops Appeal in Lawsuit on 340B Rebate Model Program
The U.S. Dept. of Health and Human Services (HHS) dropped its appeal of a preliminary injunction blocking implementation of the 340B Rebate Model Pilot Program (Rebate Pilot). 

This comes after a quick series of legal movements that started when the U.S. District Court of Maine issued a preliminary injunction on Dec. 29, 2025, temporarily blocking the implementation of the Rebate Pilot that was scheduled to begin on Jan. 1, 2026. On Jan. 7, 2026, the U.S. Court of Appeals for the First Circuit denied HHS’s motion for a stay of the injunction pending its appeal, meaning the Rebate Pilot remained on hold.  

The underlying lawsuit filed against HHS by the American Hospital Association, Maine Hospital Association, and four health systems alleged it violated the Administrative Procedures Act (APA) in implementing the Rebate Pilot. In issuing the preliminary injunction, the District Court of Maine recognized that HHS has the authority to achieve statutory objectives through a rebate model but found that the plaintiffs were likely to succeed in their claim that HHS violated the APA in doing so. 

Although HHS has dropped its appeal, in a letter filed with the court, HHS suggested that it will reexamine the Rebate Program in light of legal issues raised in litigation, potentially restarting the administrative process to correct its alleged violations of the APA in the development of a revised Rebate Pilot.

IHA will continue to track and disseminate developments related to the Rebate Pilot.

Illinois WIC Formula Change to Begin on Feb. 1

The Illinois Women, Infants, and Children (WIC) food assistance program promotes and supports breastfeeding as the normative standard for infant feeding and nutrition, and recognizes some infants and children benefit from formula provided by the WIC program. The Illinois Dept. of Human Services (DHS) announced that beginning Feb. 1, 2026, the Illinois WIC program will begin a transition from providing the Enfamil line of formula products from Mead Johnson to the Similac line of formula products made by Abbott.

In order to facilitate a smooth transition for Illinois families, DHS has provided guidance and resources for medical providers, including an Abbott Crosswalk Conversion Guide; a Stakeholder Guide for Illinois Medical Professionals; and Illinois WIC formula change talking points for medical providers, that provides answers to frequently asked questions about the upcoming formula transition. HFS emphasized the talking points should not be shared as a handout to give to Illinois WIC patients but rather used as a reference for medical providers and their staff.

Questions about the formula change can be directed to Erin Novak at erin.novak@illinois.gov. 

Funding Opportunity: Apply for TELEHEALTH-2 Funding by Feb. 2
The Illinois Regional Care Coordination Agency (IL RCCA) has released the Increase Access to Telehealth-2 (TELEHEALTH-2) Notice of Funding Opportunity for qualified applications to establish telehealth services in areas and communities of Illinois that are not adequately served by existing resources and/or are historically underserved. The goal of the program is to increase access to prevention, treatment, harm reduction, and recovery support services for people with or at risk for opioid use disorder (OUD) and other co-occurring substance use disorders (SUDs), prioritizing communities and populations disparately impacted by the opioid crisis.

Up to 11 organizations may be awarded funds, which total an estimated $5 million over three years. Recipients of the TELEHEALTH funding will be required to:

• Design a telehealth system, including technology infrastructure, in compliance with regulatory requirements, documentation of processes and procedures, and training and technical support.

• Acquire and maintain necessary hardware and healthcare devices, platform/software licensing, and functionality support (e.g., security systems, cloud services).

• Provide training and technical support to telehealth providers.

• Implement telehealth services.

Applications must be submitted by Feb. 2 at 5 p.m. CT. Click here for more information about the program and eligibility requirements, application materials, and other associated resources and information.