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Ch. 541 2006 LAWS OF MARYLAND
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(3) A CERTIFICATE OF NEED IS REQUIRED BEFORE ANY OF THE
FOLLOWING CAPITAL EXPENDITURES ARE MADE BY OR ON BEHALF OF A HEALTH
CARE FACILITY OTHER THAN A HOSPITAL OR RELATED INSTITUTION!
(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 $1,250,000;
2. THE EXPENDITURE IS MADE AS PART OF A REPLACEMENT
OF ANY PLANT AND EQUIPMENT OF THE HEALTH CARE FACILITY AND IS MORE THAN
$1,250,000 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 HEALTH CARE FACILITY; OR
4. THE EXPENDITURE RESULTS IN THE ESTABLISHMENT OF
A NEW MEDICAL SERVICE IN A HEALTH CARE FACILITY 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 HEALTH
CARE FACILITY, 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 $1,250,000;
2. THE EXPENDITURE IS MADE AS PART OF A REPLACEMENT
OF ANY PLANT AND EQUIPMENT AND IS MORE THAN $1,250,000 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 HEALTH CARE FACILITY; OR
4. THE EXPENDITURE RESULTS IN THE ESTABLISHMENT OF
A NEW MEDICAL SERVICE IN A HEALTH CARE FACILITY THAT WOULD REQUIRE A
CERTIFICATE OF NEED UNDER SUBSECTION (I) OF THIS SECTION.
[(2)] (4) (3) A certificate of need is required before any equipment or
plant is donated to a health care facility, if a certificate of need would be required
under [paragraph (1)] PARAGRAPH (1), (2), OR (3) (1) OR (2) of this subsection for an
expenditure by the health care facility to acquire the equipment or plant directly.
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