WILLIAM DONALD SCHAEFER, Governor

organizations or health care facilities that either control,
directly or indirectly, or are controlled by health
maintenance organizations; altering a certain provision of
law so as to exempt health maintenance organizations from
certain certificate of need requirements for the purchase of
an existing ambulatory surgical facility or center; and
correcting a technical omission.

BY repealing and reenacting, with amendments,

Article - Health - General

Section 19-116(c)(2) Section 19-116(b) and (c)(2)
Annotated Code of Maryland
(1987 Replacement Volume)

BY repealing

Chapter 420 of the Acts of the General Assembly of 1987
Section 2

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

Article - Health - General

19-116.

(b) (1) A health maintenance organization or a health care
facility that either [controls] CONTROLS, directly or indirectly,
or is controlled by[,] a health maintenance organization shall
have a certificate of need before the health maintenance
organization or health care facility builds, develops, operates,
purchases, or participates in building, developing, operating,
or establishing:

[(1)] (I) A hospital, as defined in § 19-301 of this
title, or an ambulatory surgical facility or center, as defined
in § 19-101(e) of this title; and

[(2)] (II) Any other health care project for which a
certificate of need is required under § 19-115 of this title if
that health care project is planned for or used by any
nonsubscribers of that health maintenance organization.

          (2) NOTWITHSTANDING SUBPARAGRAPH (B)(1)(I) OF THIS

SUBSECTION, A HEALTH MAINTENANCE ORGANIZATION OR A HEALTH CARE
FACILITY THAT EITHER CONTROLS, DIRECTLY OR INDIRECTLY, OR IS
CONTROLLED BY A HEALTH MAINTENANCE ORGANIZATION IS NOT REQUIRED
TO OBTAIN A CERTIFICATE OF NEED BEFORE PURCHASING AN EXISTING
AMBULATORY SURGICAL FACILITY OR CENTER, AS DEFINED IN § 19-101(E)
OF THIS TITLE.

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