Maryland Statutes
Part II - Health Care Facility Rate Setting
Section 19-220 - Rate Review and Approval Procedures

(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.
    (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.
    (c)    The Commission shall obtain from each facility its current rate schedule and each later change in the schedule that the Commission requires.
    (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.
    (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.
    (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.
    (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.