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3810
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VETOES
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style changes and generally clarifying the
provisions that relate to public rehabilitation and
chronic disease hospital centers.
May 26, 1977
Honorable Steny H. Hoyer
President of the Senate
State House
Annapolis, Maryland 21404
Dear Mr. President;
In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed Senate Bill
421.
This bill authorizes the Secretary of Health and
Mental Hygiene to discontinue the direct administration
of a public rehabilitation and chronic disease center by
contracting for the operation of the center, if he
believes that greater efficiency would result from such
an arrangement. Secondly, the bill authorizes the
Secretary to allow a provider of services to bill and
collect directly from a third party payor, or from
certain other sources. Finally, the bill mandates that
any such payment shall be used to compensate the private
provider and prohibits the payment from being deposited
to the general funds of the State.
By allowing any provider with whom the Secretary has
contracted to bill and collect directly, third party
collections will no longer flow to the Treasury.
According to the Department of Budget and Fiscal
Planning, this revenue loss will not be offset by an
equal reduction in expenditures, the likely outcome of
Senate Bill 421 would be a significant increase in the
expenditures of a chronic disease center. The State will
bear a considerable share of the higher cost either as a
direct subsidy to the contractor or through Medicaid and
other program payments.
If implemented, Senate Bill 421 will promote the
operation of the State chronic disease centers with a
significant degree of autonomy from both Executive and
Legislative control. If there are personnel or other
problems associated with the operation of a particular
center or centers, I believe that they should be
addressed directly. I do not believe that their solution
is best accomplished by removing an entire program from
the State system.
For these reasons, and at the request of the
Secretary of Budget and Fiscal Planning, I have decided
to veto Senate Bill 421.
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