1316                               Laws of Maryland                        [Ch. 627

services offered by the INSTITUTION, THAT THE institution's
aggregate rates are reasonably related to the institution's aggregate
costs; and that rates are set equitably among all purchasers OR
CLASSES OF PURCHASERS of services without undue discrimi-
nation, OR PREFERENCE.

In order to properly discharge these obligations, the Commission
shall have full power to review and approve the reasonableness of
rates established or requested by any institution subject to the pro-
visions of this subtitle. No institution shall charge for services at a
rate other than those established in accordance with the procedures
established hereunder.

IN THE INTEREST OF PROMOTING THE MOST EFFICIENT
AND EFFECTIVE USE OF HEALTH CARE INSTITUTIONAL
SERVICE, THE COMMISSION MAY PROMOTE AND APPROVE
ALTERNATIVE METHODS OF RATE DETERMINATION AND
PAYMENT OF AN EXPERIMENTAL NATURE THAT MAY BE
IN THE PUBLIC INTEREST AND CONSISTENT WITH THE
PURPOSES OF THIS SUBTITLE.

568V.

To properly carry out its authority under Section 568V, the Com-
mission shall:

(1)  Immediately upon the effective date of this subtitle begin to
compile all relevant financial and accounting data in order to have
available the statistical information necessary to properly conduct
rate review and approval. SUCH DATA SHALL INCLUDE NEC-
ESSARY OPERATING EXPENSES, APPROPRIATE EXPENSES
INCURRED FOR RENDERING SERVICES TO PATIENTS WHO
CANNOT OR DO NOT PAY, ALL PROPERLY INCURRED IN-
TEREST CHARGES, AND REASONABLE DEPRECIATION EX-
PENSES BASED ON THE EXPECTED USEFUL LIFE OF THE
PROPERTY AND EQUIPMENT INVOLVED. The Commission
shall define and prescribe by rule the types and classes of charges
which cannot be changed except as provided by the following proce-
dure and it shall also obtain from each such institution a current
rate schedule as well as any subsequent amendments or modifications
of that schedule as it may require.

(2)   (A) Permit any NONPROFIT institution subject to the pro-
visions of this subtitle to charge reasonable rates which will permit
the institution to render effective and efficient service in the public

interest and, at the same time, operate on a solvent basis. In deter-

mining the reasonableness of rates, the rates should be sufficient to

provide for all reasonable and necessary operating expenses, includ-
ing appropriate expenses incurred for rendering services to patients
who cannot or do not pay, all properly incurred interest charges,
reasonable depreciation expenses based on the expected useful life
of the property and equipment involved, a reasonable level of cash
working capital in the case of non profit making institutions, and in
the case of proprietary, profit making institutions, and allowance for

a fair return to stockholders based upon actual investment of the

fair value of the investment, whichever is less.

(B) PERMIT ANY PROPRIETARY PROFIT-MAKING INSTI-
TUTION SUBJECT TO THE PROVISIONS OF THIS SUBTITLE
TO CHARGE REASONABLE RATES WHICH WILL PERMIT