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August 30, 2026

Auditing Illinois’ Hospital Districts –

By John Kraft & Kirk Allen

On August 30, 2026

Illinois (ECWd) –

One of the Special Districts authorized in Illinois is a Hospital District.

Hospital Districts are governed by the Hospital District Law, 70 ILCS 910.

Hospital Districts are generally county-wide, with some exceptions, and are initially approved with a referendum to the voters.

The referendum to establish a Hospital District, if passed by a majority of the voters of the county, municipalities or townships, will be approved by a circuit judge, who will state with specificity what the district boundaries are. Generally, language such as “will encompass the whole of the county of XYZ” along with the vote totals will be included in the court’s order. Then, the Secretary of State will issue a Certificate of Incorporation to the district, which will also include the official name of the district, as found on the petitions for referendum.

The Purpose of a Hospital District is found in Section 2 of the law (emphasis ours):

“The establishment, maintenance and operation of safe and accessible hospitals within the State of Illinois and the creation of Hospital Districts having powers necessary or desirable for the establishment and continued maintenance and operation of such hospitals are declared and determined to be in the interest of public health.”
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If properties not included in the initial referendum wish to be annexed into the district, the voters may petition for annexation (there is no other method of annexation), and if the required number of signatures are had on the petitions for annexation, the question will be placed on the ballot and voted on.
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Hospital Districts are authorized to levy a property tax not to exceed 0.075 percent. Hospital Districts are authorized to work and establish facilities outside their districts, under the following conditions:
1. If the district does not levy a tax, they can operate outside their corporate boundaries if and when they so choose to do so.
2. If the district levies a tax, it is prohibited from operating outside its corporate boundaries unless so authorized by referendum of the voters.
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The name of the district can be changed with a 2/3 vote of the board members.
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A listing of all Illinois Hospital Districts can be found on the Illinois Comptroller’s webpage (HERE). The eight Hospital Districts that have dissolved are marked in red (here).
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More information forthcoming on our audit of hospital districts and their compliance with the Hospital District Law.

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