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ROBERT L. EHRLICH, JR., Governor Ch. 541
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(2) A CERTIFICATE OF NEED IS REQUIRED BEFORE ANY OF THE
FOLLOWING CAPITAL EXPENDITURES ARE MADE BY OR ON BEHALF OF A RELATED
INSTITUTION HEALTH CARE FACILITY OTHER THAN A HOSPITAL:
(I) ANY EXPENDITURE THAT, UNDER GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES, IS NOT PROPERLY CHARGEABLE AS AN OPERATING OR
MAINTENANCE EXPENSE, IF:
1. THE EXPENDITURE IS MADE AS PART OF AN ACQUISITION,
IMPROVEMENT, OR EXPANSION, AND, AFTER ADJUSTMENT FOR INFLATION AS
PROVIDED IN THE REGULATIONS OF THE COMMISSION, THE TOTAL EXPENDITURE,
INCLUDING THE COST OF EACH STUDY, SURVEY, DESIGN, PLAN, WORKING DRAWING,
SPECIFICATION, AND OTHER ESSENTIAL ACTIVITY, IS MORE THAN $5,000,000;
2. THE EXPENDITURE IS MADE AS PART OF A REPLACEMENT
OF ANY PLANT AND EQUIPMENT OF THE RELATED INSTITUTION HEALTH CARE
FACILITY OTHER THAN A HOSPITAL AND IS MORE THAN $5,000,000 AFTER
ADJUSTMENT FOR INFLATION AS PROVIDED IN THE REGULATIONS OF THE
COMMISSION;
3. THE EXPENDITURE RESULTS IN A SUBSTANTIAL CHANGE
IN THE BED CAPACITY OF THE RELATED INSTITUTION HEALTH CARE FACILITY
OTHER THAN A HOSPITAL: OR
4. THE EXPENDITURE RESULTS IN THE ESTABLISHMENT OF
A NEW MEDICAL SERVICE IN A RELATED INSTITUTION HEALTH CARE FACILITY
OTHER THAN A HOSPITAL THAT WOULD REQUIRE A CERTIFICATE OF NEED UNDER
SUBSECTION (I) OF THIS SECTION; OR
(II) ANY EXPENDITURE THAT IS MADE TO LEASE OR, BY
COMPARABLE ARRANGEMENT, OBTAIN ANY PLANT OR EQUIPMENT FOR THE
RELATED INSTITUTION HEALTH CARE FACILITY OTHER THAN A HOSPITAL, IF:
1. THE EXPENDITURE IS MADE AS PART OF AN ACQUISITION,
IMPROVEMENT, OR EXPANSION, AND, AFTER ADJUSTMENT FOR INFLATION AS
PROVIDED IN THE RULES AND REGULATIONS OF THE COMMISSION, THE TOTAL
EXPENDITURE, INCLUDING THE COST OF EACH STUDY, SURVEY, DESIGN, PLAN,
WORKING DRAWING, SPECIFICATION, AND OTHER ESSENTIAL ACTIVITY, IS MORE
THAN $5,000,000;
2. THE EXPENDITURE IS MADE AS PART OF A REPLACEMENT
OF ANY PLANT AND EQUIPMENT AND IS MORE THAN $5,000,000 AFTER ADJUSTMENT
FOR INFLATION AS PROVIDED IN THE REGULATIONS OF THE COMMISSION;
3. THE EXPENDITURE RESULTS IN A SUBSTANTIAL CHANGE
IN THE BED CAPACITY OF THE RELATED INSTITUTION HEALTH CARE FACILITY
OTHER THAN A HOSPITAL; OR
4. THE EXPENDITURE RESULTS IN THE ESTABLISHMENT OF
A NEW MEDICAL SERVICE IN A RELATED INSTITUTION HEALTH CARE FACILITY
OTHER THAN A HOSPITAL THAT WOULD REQUIRE A CERTIFICATE OF NEED UNDER
SUBSECTION (I) OF THIS SECTION.
- 2663 -
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