Ch. 688

LAWS OF MARYLAND

2. DURING A 1-YEAR PERIOD, THE ANNUAL
OPERATING REVENUE THAT WOULD RESULT FROM THE EXPANSION OF THE
HOME HEALTH SERVICE OR PROGRAM WOULD BE GREATER THAN $333,000
AFTER AN ANNUAL ADJUSTMENT FOR INFLATION, BASED ON AN APPROPRIATE
INDEX SPECIFIED BY THE COMMISSION.

(j) (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] $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 [$600,000] $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;

4.  The expenditure results in [a
substantial change in the services of] 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 [$600,000] $1,250,000;

2.  The expenditure is made as part of a
replacement of any plant and equipment and is more than
[$600,000] $1,250,000 after adjustment for inflation as provided
in the regulations of the Commission;

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