706                                        LAWS OF MARYLAND                                Ch. 306

the time period within which hospitals and related institutions under the
jurisdiction of the Health Services Cost Review Commission shall have the
power to set rates; and relating generally to the rates for health care services
established by hospitals and related institutions.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 568H 568U and 568W of Article 43 of the
Annotated Code of Maryland (1971 Replacement Volume and 1972 Supplement),
title "Health," subtitle "Health Services Cost Review Commission," be and they
are hereby repealed and re-enacted, with amendments, all to read as follows:

568H.

In creating the Health Services Cost Review Commission, the intent of the
Maryland General Assembly shall be as follows:

a. The purpose of this subtitle is to create a commission which will beginning
July 1, 1971, cause the public disclosure of [1] the financial position of all
hospitals and related institutions and [2] the verified total costs actually incurred
by each such institution in rendering health services, computed by methods the
Commission prescribes; and which after the expiration of three OR FOUR
additional years, AS HEREINAFTER SET FORTH, will also review and certify
as to the reasonableness of the rates established by these institutions. It will also be
the Commission's responsibility to keep itself informed as to whether the financial
resources of each institution are sufficient to meet its financial requirements and to
concern itself with solutions when resources are inadequate.

b. FROM AND [A] after July 1, 1974, an additional responsibility of this
Commission is to assure all purchasers of health care [institutional] HOSPITAL
services that the total costs of the [institution] HOSPITAL are reasonably related
to the total services offered by the [institution] HOSPITAL; that the
[institution's] HOSPITAL'S aggregate rates are set in reasonable relationship to
the [institution's] HOSPITAL'S aggregate costs; and that rates are set equitably
among all purchasers of services without undue discrimination.

c. THE PROVISIONS OF SUBSECTION B. OF THIS SECTION SHALL
APPLY TO RELATED INSTITUTIONS, AS THAT TERM IS DEFINED IN
SECTION 556 [D] OF THIS ARTICLE, FROM AND AFTER JULY 1, 1975.

568U.

(A)  From and after July 1, [1975] 1974, the Commission shall have the power
to initiate such reviews or investigations as may be necessary to assure all
purchasers of health care [institutional] HOSPITAL services that the total costs
of the [institution) HOSPITAL are reasonably related to the total services offered
by the [institution] HOSPITAL, that the [institution's] HOSPITAL'S aggregate
rates are reasonably related to the [institution's] HOSPITAL'S aggregate costs;
and that rates are set equitably among all purchasers or classes of purchasers of
services without undue discrimination or preference.

(B)  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] HOSPITAL subject to the provisions of this
subtitle. No [institution] HOSPITAL shall charge for services at a rate other than
those established in accordance with the procedures established hereunder.

(C)  In the interest of promoting the most efficient and effective use of health
care [institutional] HOSPITAL service, the Commission may promote and
approve alternative methods of rate determination and payment of an experimental