HARRY HUGHES, Governor

1515

WHEREAS, The reduction of excess capacity is essential to
the long-term financial viability of our hospital industry; and

WHEREAS, It is the policy of the State to promote voluntary
efforts to reduce excess capacity by encouraging and assisting
hospitals to close, merge, consolidate, or convert to other
appropriate uses; and

WHEREAS, It is the intent of this Act that certain factors
will be included in the consideration and determination of a
required closure of all or part of a hospital, including location
in urban, suburban, or rural areas, payor mix, bad debt,
socio-economic status of the patient population, migration
patterns, the severity of illnesses traditionally treated at the
hospital; and in certain circumstances consideration may be given
to the historic role of the hospital to the community that it
serves; and

WHEREAS, If voluntary efforts to reduce excess capacity
prove insufficient, the State, as a last resort, must have the
authority to require closure of all or part of underutilized
hospital facilities or services; and

WHEREAS, It is the policy of the State to minimize financial
disruption caused by the closure of a hospital by creating a
program to protect the bonded indebtedness of a closing hospital;
and

WHEREAS, It is the policy of the State to minimize the
disruption to the community caused by the closure of a hospital
by assisting in efforts to place or retrain dislocated hospital
employees and assisting in efforts to identify new productive
alternative uses for hospital buildings and sites; now,
therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 19-118(e), (f), (g), (h), and (i),
respectively, of Article - Health - General of the Annotated Code
of Maryland be renumbered to be Section(s) 19-118(f), (g), (h),
(i), and (j), respectively.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Health - General

19-114.

(a) (1) At least every 5 years, beginning no later than
October 1, 1983, the Commission shall adopt a State health plan
that includes local health plans.