HARRY HUGHES, Governor

2775

CHAPTER 730

(House Bill 573)

AN ACT concerning

Health Facilities - Certificate of Need - Exemptions

FOR the purpose of adding an exemption from the certificate of
need process for certain equipment, construction, and
renovation projects of certain health facilities; and
generally relating to exemptions from the certificate of
need process.

BY repealing and reenacting, with amendments,

Article - Health - General
Section 19-115(k)
Annotated Code of Maryland
(1982 Volume and 1985 Supplement)

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

Article - Health - General

19-115.

(k) (1) A certificate of need is required before any of the
following capital expenditures are made by or on behalf of a
health care facility:

(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 $600,000;

2.  The expenditure is made as part of a
replacement of any plant and equipment of the health care
facility and is more than $600,000 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;