1746                             Laws of Maryland                      [Ch. 681

(1971 Replacement Volume and 1971 Supplement), title "Health,"
subtitle "Health Services Cost Review Commission," be and it is
hereby repealed and re-enacted, with amendments, to read as follows:

568V.

To properly carry out its authority the Commission 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 necessary operat-
ing expenses, appropriate expenses incurred for rendering services to
patients who cannot or do not pay, all properly incurred interest
charges, and reasonable depreciation expenses 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
procedure 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 provi-
sions of this subtitle to charge reasonable rates which will permit
the institution to render effective and efficient service in the public
interest on a solvent basis.

(B) Permit any proprietary profit-making institution subject to
the provisions of this subtitle to charge reasonable rates which will
permit the institution to render effective and efficient service in the
public interest and [which includes an allowance for a fair return to
stockholders based upon actual investment or the fair value of the
investment, whichever is less.] which shall include sufficient allow-
ance for and provide a fair return to owners based upon actual
investment or the current fair market value of the institution's prop-
erty and investments of all kinds DIRECTLY RELATED TO THE
HEALTH FACILITY, whichever is higher.

(3)  In the determination of reasonable rates under this section for
each institution, take into account all the costs of complying with
the recommendations of appropriate areawide and State comprehen-
sive health planning agencies to [ensure] make compliance possible
with Maryland comprehensive health planning law as found in Sec-
tion 59C of Article 41 of the Annotated Code of Maryland.

(4)  In considering a request for change in or initiating a review
of rate schedules or other charges, permit any institution subject to
the provisions of this subtitle to charge rates which will in the aggre-
gate produce sufficient total revenue [for the institution to meet all
of the reasonable obligations] which will enable the institution
reasonably to meet all of the obligations and requirements specified
herein.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1972.

Approved May 31, 1972.