MARVIN MANDEL, Governor                             2151

Article 43 - Health
42A.

[(a) Each county and Baltimore City during the
fiscal year 1971 and each year thereafter shall place on
deposit with the State Department of Health, funds equal
to 20% of the costs for the hospital care of indigent and
medically indigent persons in the respective political
subdivisions, to permit the State Department of Health to
pay 100% of current costs for the hospital care of those
persons, provided, that for the fiscal year beginning on
July 1, 1974, and for each fiscal year thereafter the
maximum amount of payment by any county or Baltimore City
shall not exceed the amount of payment actually paid for
the fiscal year beginning on July 1, 1973. The amount to
be be placed on deposit with the State Department of
Health for each fiscal year will be that amount specified
for the respective political subdivisions in estimates to
be furnished to the political subdivisions by the State
Department of Health during the month of December
immediately preceding the beginning of the fiscal year
concerned. Those estimates will be based on the same
considerations as those which are incorporated in the
calculations in the Governor's recommended budget.
Following the close of the fiscal year for which the
deposit is made, the State Department of Health shall
make a final calculation of the exact amount required for
the county to satisfy the provisions of this subsection.
If that amount exceeds the amount which the political
subdivision had placed on deposit, the additional local
requirement will be reported to the political subdivision
concerned, and the political subdivision shall
appropriate and forward that amount to the State
Department of Health within eighteen (18) months after
receipt of the report. If the final calculation shows
that the amount placed on deposit was in excess of the
required amount to satisfy this subsection, the State
Department of Health will credit the differences to each
subdivision concerned in the estimates it forwards to
each political subdivision in December of each year, as
provided at the outset of this subsection.

(b) These funds shall be used by the State
Department of Health solely for the purpose of
supplementing the State general funds appropriated for
hospital care so that payments for hospital service
rendered to indigent and medically indigent patients will
be made at full current cost as determined by the
step—down accounting method in conjunction with the ratio
of charge to cost procedures as recommended by the
Maryland Legislative Council's committee on taxation and
fiscal matters.