This report re-examines the State of Illinois' Board of Higher Education's 1980 policies on education for the health professions and recommends revised general policies for the Board's consideration. An update on occupational demand and program developments are provided and programmatic directions are recommended for institutions to consider in making capacity adjustments in health educational programs during the next 3 to 5 years The report also re-examines the Health Services Education Grants Act and proposes amendments to grant rates and definitions reflected in the rules for administration of the Act. This reassessment shows that the Board's current policies on education for the health professions continue to be relevant and that these policies reflect general goals and directions for the 1990s. Minority representation in the health professions is significantly below the proportion of minorities in the state's population, so increasing minority enrollments continues to be a high priority. Shortages of health personnel were identified, resulting in recommendations to expand existing program capacity or add new programs. There is also a need for new incentives to increase enrollments in the various health professions, to increase the number of physicians in primary care, and to encourage more physicians to establish practices in underserved areas. An appendix provides the current Board policies on health professions education. (GLR)