Maryland Statutes
Subtitle 3 - Patient Referrals
Section 1-303 - Disclosure of Beneficial Interest

(a)    Except as provided in subsection (c) of this section and Title 12 of this article, a health care practitioner making a lawful referral shall disclose the existence of the beneficial interest in accordance with provisions of this section.
    (b)    Prior to referring a patient to a health care entity in which the practitioner, the practitioner's immediate family, or the practitioner in combination with the practitioner's immediate family owns a beneficial interest, the health care practitioner shall:
        (1)    Except if an oral referral is made by telephone, provide the patient with a written statement that:
            (i)    Discloses the existence of the ownership of the beneficial interest or compensation arrangement;
            (ii)    States that the patient may choose to obtain the health care service from another health care entity; and
            (iii)    Requires the patient to acknowledge in writing receipt of the statement;
        (2)    Except if an oral referral is made by telephone, insert in the medical record of the patient a copy of the written acknowledgement;
        (3)    Place on permanent display a written notice that is in a typeface that is large enough to be easily legible to the average person from a distance of 8 feet and that is in a location that is plainly visible to the patients of the health care practitioner disclosing all of the health care entities:
            (i)    In which the practitioner, the practitioner's immediate family, or the practitioner in combination with the practitioner's immediate family owns a beneficial interest; and
            (ii)    To which the practitioner refers patients; and
        (4)    Documents in the medical record of the patient that:
            (i)    A valid medical need exists for the referral; and
            (ii)    The practitioner has disclosed the existence of the beneficial interest to the patient.
    (c)    The provisions of this section do not apply to:
        (1)    A health care practitioner when treating a member of a health maintenance organization as defined in § 19-701 of the Health - General Article and the health care practitioner does not have a beneficial interest in the health care entity; or
        (2)    A health care practitioner who refers a patient:
            (i)    To another health care practitioner in the same group practice as the referring health care practitioner;
            (ii)    For in-office ancillary services; or
            (iii)    For health care services provided through or by a health care entity owned or controlled by a hospital.
    (d)    A health care practitioner who fails to comply with any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.

Structure Maryland Statutes