Maryland Code § HG-19-218

Section HG-19-218
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(a) The Commission shall require each facility to give the Commission
information that:
(1) Concerns the total financial needs of the facility;
(2) Concerns its current and expected resources to meet its total
financial needs;
(3) Includes the effect of any proposal made, under Subtitle 1 of this
title, on comprehensive health planning; and
(4) Includes physician information sufficient to identify practice
patterns of individual physicians across all facilities.
(b) The identities of individual physicians are confidential and are not
discoverable or admissible in evidence in a civil or criminal proceeding, and may only
be disclosed to the following:
(1) The utilization review committee of a Maryland hospital;
(2) The Medical and Chirurgical Faculty of the State of Maryland;
(3) The State Board of Physicians;
(4) The Office of Health Care Quality in the Department;
(5) The Maryland Health Care Commission; or
(6) An investigatory body under the State or federal government.
§19-219. ** CONTINGENCY - IN EFFECT - CHAPTERS 244 AND 245 OF 2008
**
(a) The Commission may review the costs, and rates, quality, and efficiency
of facility services, and make any investigation that the Commission considers
necessary to assure each purchaser of health care facility services that:

(1) The total costs of all hospital services offered by or through a
facility are reasonable;
(2) The aggregate rates of the facility are related reasonably to the
aggregate costs of the facility; and
(3) Except as provided in § 19-214.2(m) of this subtitle, the rates are
set equitably among all purchasers or classes of purchasers without undue
discrimination or preference.
(b) (1) To carry out its powers under subsection (a) of this section, the
Commission may review and approve or disapprove the reasonableness of any rate or
amount of revenue that a facility sets or requests.
(2) A facility shall:
(i) Charge for services only at a rate set in accordance with
this subtitle; and
(ii) Comply with the applicable terms and conditions of the all-
payer model contract.
(3) Consistent with the all-payer model contract, in determining the
reasonableness of rates, the Commission may take into account objective standards
of efficiency and effectiveness.
(c) Consistent with the all-payer model contract, and notwithstanding any
other provision of this subtitle, the Commission may:
(1) Establish hospital rate levels and rate increases in the aggregate
or on a hospital-specific basis;
(2) Promote and approve alternative methods of rate determination
and payment of an experimental nature for the duration of the all-payer model
contract; and
(3) On request of the Secretary, assist in the implementation of
federally approved model programs.
§19-219. ** CONTINGENCY - NOT IN EFFECT - CHAPTERS 244 AND 245 OF
2008 **

(a) The Commission may review the costs, and rates, quality, and efficiency
of facility services, and make any investigation that the Commission considers
necessary to assure each purchaser of health care facility services that:
(1) The total costs of all hospital services offered by or through a
facility are reasonable;
(2) The aggregate rates of the facility are related reasonably to the
aggregate costs of the facility; and
(3) Except as provided in § 19-214.2(m) of this subtitle, the rates are
set equitably among all purchasers or classes of purchasers without undue
discrimination or preference.
(b) (1) To carry out its powers under subsection (a) of this section, the
Commission may review and approve or disapprove the reasonableness of any rate or
amount of revenue that a facility sets or requests.
(2) A facility shall:
(i) Charge for services only at a rate set in accordance with
this subtitle; and
(ii) Comply with the applicable terms and conditions of the all-
payer model contract.
(3) Consistent with the all-payer model contract, in determining the
reasonableness of rates, the Commission may take into account objective standards
of efficiency and effectiveness.
(c) Consistent with the all-payer model contract, and notwithstanding any
other provision of this subtitle, the Commission may:
(1) Establish hospital rate levels and rate increases in the aggregate
or on a hospital-specific basis;
(2) Promote and approve alternative methods of rate determination
and payment of an experimental nature for the duration of the all-payer model
contract; and
(3) On request of the Secretary, assist in the implementation of
federally approved model programs.

(d) (1) In this subsection, "base hospital rate" means the aggregate value
to participating commercial health insurance carriers of the substantial, available,
and affordable coverage purchaser differential as determined by the Commission for
the calendar year 2002.
(2) The Commission, in accordance with this subsection, shall
calculate the amount of funds necessary to operate and administer the Maryland
Health Insurance Plan established under Title 14, Subtitle 5 of the Insurance Article.
(3) (i) The Commission shall determine the percentage of total
net patient revenue received in calendar year 2002 by all hospitals for which the
Commission approved hospital rates that is represented by the base hospital rate.
(ii) The percentage under subparagraph (i) of this paragraph
shall be determined by dividing the base hospital rate by the total net patient revenue
received in calendar year 2002 by all hospitals for which the Commission approved
hospital rates.
(4) On or before May 1 of each year, the Commission shall:
(i) Determine the amount of funding to allocate to the
Maryland Health Insurance Plan by multiplying the percentage determined under
paragraph (3) of this subsection by the value of the total net patient revenues received
in the immediately preceding State fiscal year by all hospitals for which rates were
approved by the Commission; and
(ii) Determine the share of total funding owed by each hospital
for which rates have been approved by the Commission proportionate to the
percentage of the base hospital rate attributable to each hospital.
(5) Each hospital shall remit monthly one-twelfth of the amount
determined under paragraph (4)(ii) of this subsection to the Maryland Health
Insurance Plan Fund.
(e) (1) The Commission shall adjust hospital rates to ensure that the
assessment collected under subsection (d) of this section is revenue neutral to each
hospital.
(2) The Commission may not consider the assessment required under
subsection (d) of this section in determining:
(i) The reasonableness of rates under this section; or
(ii) Hospital financial performance.

§19-219. ** CONTINGENCY - IN EFFECT - CHAPTERS 244 AND 245 OF 2008
**
// EFFECTIVE UNTIL JUNE 30, 2028 PER CHAPTER 750 OF 2028 //
(a) The Commission may review the costs, and rates, quality, and efficiency
of facility services, and make any investigation that the Commission considers
necessary to assure each purchaser of health care facility services that:
(1) The total costs of all hospital services offered by or through a
facility are reasonable;
(2) The aggregate rates of the facility are related reasonably to the
aggregate costs of the facility; and
(3) The rates are set equitably among all purchasers or classes of
purchasers without undue discrimination or preference.
(b) (1) To carry out its powers under subsection (a) of this section, the
Commission may review and approve or disapprove the reasonableness of any rate or
amount of revenue that a facility sets or requests.
(2) A facility shall:
(i) Charge for services only at a rate set in accordance with
this subtitle; and
(ii) Comply with the applicable terms and conditions of the all-
payer model contract.
(3) Consistent with the all-payer model contract, in determining the
reasonableness of rates, the Commission may take into account objective standards
of efficiency and effectiveness.
(c) Consistent with the all-payer model contract, and notwithstanding any
other provision of this subtitle, the Commission may:
(1) Establish hospital rate levels and rate increases in the aggregate
or on a hospital-specific basis;
(2) Promote and approve alternative methods of rate determination
and payment of an experimental nature for the duration of the all-payer model
contract; and

(3) On request of the Secretary, assist in the implementation of
federally approved model programs.
§19-219. // EFFECTIVE JULY 1, 2028 PER CHAPTER 750 OF 2025 //
** CONTINGENCY - NOT IN EFFECT - CHAPTERS 244 AND 245 OF 2008
**
(a) The Commission may review the costs, and rates, quality, and efficiency
of facility services, and make any investigation that the Commission considers
necessary to assure each purchaser of health care facility services that:
(1) The total costs of all hospital services offered by or through a
facility are reasonable;
(2) The aggregate rates of the facility are related reasonably to the
aggregate costs of the facility; and
(3) The rates are set equitably among all purchasers or classes of
purchasers without undue discrimination or preference.
(b) (1) To carry out its powers under subsection (a) of this section, the
Commission may review and approve or disapprove the reasonableness of any rate or
amount of revenue that a facility sets or requests.
(2) A facility shall:
(i) Charge for services only at a rate set in accordance with
this subtitle; and
(ii) Comply with the applicable terms and conditions of the all-
payer model contract.
(3) Consistent with the all-payer model contract, in determining the
reasonableness of rates, the Commission may take into account objective standards
of efficiency and effectiveness.
(c) Consistent with the all-payer model contract, and notwithstanding any
other provision of this subtitle, the Commission may:
(1) Establish hospital rate levels and rate increases in the aggregate
or on a hospital-specific basis;

(2) Promote and approve alternative methods of rate determination
and payment of an experimental nature for the duration of the all-payer model
contract; and
(3) On request of the Secretary, assist in the implementation of
federally approved model programs.
(d) (1) In this subsection, "base hospital rate" means the aggregate value
to participating commercial health insurance carriers of the substantial, available,
and affordable coverage purchaser differential as determined by the Commission for
the calendar year 2002.
(2) The Commission, in accordance with this subsection, shall
calculate the amount of funds necessary to operate and administer the Maryland
Health Insurance Plan established under Title 14, Subtitle 5 of the Insurance Article.
(3) (i) The Commission shall determine the percentage of total
net patient revenue received in calendar year 2002 by all hospitals for which the
Commission approved hospital rates that is represented by the base hospital rate.
(ii) The percentage under subparagraph (i) of this paragraph
shall be determined by dividing the base hospital rate by the total net patient revenue
received in calendar year 2002 by all hospitals for which the Commission approved
hospital rates.
(4) On or before May 1 of each year, the Commission shall:
(i) Determine the amount of funding to allocate to the
Maryland Health Insurance Plan by multiplying the percentage determined under
paragraph (3) of this subsection by the value of the total net patient revenues received
in the immediately preceding State fiscal year by all hospitals for which rates were
approved by the Commission; and
(ii) Determine the share of total funding owed by each hospital
for which rates have been approved by the Commission proportionate to the
percentage of the base hospital rate attributable to each hospital.
(5) Each hospital shall remit monthly one-twelfth of the amount
determined under paragraph (4)(ii) of this subsection to the Maryland Health
Insurance Plan Fund.
(e) (1) The Commission shall adjust hospital rates to ensure that the
assessment collected under subsection (d) of this section is revenue neutral to each
hospital.

(2) The Commission may not consider the assessment required under
subsection (d) of this section in determining:
(i) The reasonableness of rates under this section; or
(ii) Hospital financial performance.

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