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§ 19-220. Financial and accounting information needed for rate review

West's Annotated Code of MarylandHealth--GeneralEffective: July 1, 2020

West's Annotated Code of Maryland
Health--General
Title 19. Health Care Facilities (Refs & Annos)
Subtitle 2. Health Services Cost Review Commission (Refs & Annos)
Part II. Health Care Facility Rate Setting
Effective: July 1, 2020
MD Code, Health - General, § 19-220
§ 19-220. Financial and accounting information needed for rate review
Currentness
In general
(a)(1) To have the statistical information needed for rate review and approval, the Commission shall compile all relevant financial and accounting information.
(2) The information shall include:
(i) Necessary operating expenses;
(ii) Appropriate expenses that are incurred in providing services to patients who cannot or do not pay;
(iii) Incurred interest charges; and
(iv) Reasonable depreciation expenses that are based on the expected useful life of property or equipment.
Types and classes of charges not changed
(b) The Commission shall define, by regulation, the types and classes of charges that may not be changed, except as specified in § 19-222 of this subtitle.
Collection of rate schedules
(c) The Commission shall obtain from each facility its current rate schedule and each later change in the schedule that the Commission requires.
Duties of Commission
(d) Consistent with the all-payer model contract approved by the federal Center for Medicare and Medicaid Innovation, the Commission shall:
(1) Permit a nonprofit facility to charge reasonable rates that will permit the facility to provide, on a solvent basis, effective and efficient service that is in the public interest; and
(2) Permit a proprietary profit-making facility to charge reasonable rates that:
(i) Will permit the facility to provide effective and efficient service that is in the public interest; and
(ii) Based on the fair value of the property and investments that are related directly to the facility, include enough allowance for and provide a fair return to the owner of the facility.
Reasonable rate determinations
(e) In the determination of reasonable rates for each facility, as specified in this section, the Commission shall take into account all of the cost of complying with recommendations made, under Subtitle 1 of this title, on comprehensive health planning.
Review of rates or charges
(f) In reviewing rates or charges or considering a request for change in rates or charges, the Commission shall permit a facility to charge rates that, in the aggregate, will produce enough total revenue to enable the facility to meet reasonably each requirement specified in this section.
Executive sessions
(g) Except as otherwise provided by law, in reviewing rates or charges or considering a request for changes in rates or charges, the Commission may not hold executive sessions.

Credits

Added as Health-General § 19-217 by Acts 1982, c. 21, § 2, eff. July 1, 1982. Amended by Acts 1985, c. 112, § 1, eff. June 1, 1985; Acts 1988, c. 6, § 1, eff. July 1, 1988. Renumbered as Health-General § 19-220 and amended by Acts 1999, c. 702, 2, eff. Oct. 1, 1999. Amended by Acts 2020, c. 505, § 1, eff. July 1, 2020.
Formerly Art. 43, § 568V.
MD Code, Health - General, § 19-220, MD HEALTH GEN § 19-220
Current through legislation effective through June 1, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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