Ch. 617

1993 LAWS OF MARYLAND

                (2) IF THE INSURANCE COMMISSIONER IN THE JURISDICTION IN WHICH

THE NONPROFIT HEALTH SERVICE PLAN IS DOMICILED HAS AUTHORITY UNDER
THE LAW OF THAT JURISDICTION TO INVESTIGATE AND APPROVE A CASE IN WHICH
A PERSON WOULD DIRECTLY OR INDIRECTLY, OR BY CONVERSION OR BY EXERCISE
OF ANY RIGHT TO ACQUIRE BE IN CONTROL OF THE NONPROFIT HEALTH SERVICE
PLAN OR MERGE OR CONSOLIDATE WITH, OR OTHERWISE ACQUIRE CONTROL OF
THE NONPROFIT HEALTH SERVICE PLAN AND THE INSURANCE COMMISSIONER OF
THIS STATE RECEIVES NOTICE FROM THE INSURANCE COMMISSIONER OF THE
OTHER JURISDICTION OF ANY SUCH ACTIVITIES AND HAS THE RIGHT TO REQUEST
INFORMATION AND DOCUMENTS CONCERNING THOSE ACTIVITIES.

503B.

IN ANY CASE WHERE AN INSURER OR NONPROFIT HEALTH SERVICE PLAN IS BEING
MERGED OR CONSOLIDATED WITH OR ACQUIRED BY ANOTHER PERSON, ANY CURRENT
FINANCING MONEYS PROVIDED BY THE INSURER PR-NONPROFIT HEALTH SERVICE PLAN
TO A HOSPITAL, IN ACCORDANCE WITH REGULATIONS ADOPTED BY THE HEALTH
SERVICES COST REVIEW COMMISSION, IN RETURN FOR A DISCOUNT IN RATES CHARGED
BY THE HOSPITAL SHALL BE DEEMED TO BE SECURITY FOR THE AMOUNT OF
OUTSTANDING CHARGES OWED BY THE INSURER OR NONPROFIT HEALTH SERVICE PLAN
TO THE HOSPITAL FOR BILLS OR CLAIMS FOR SERVICES PROVIDED BY THE HOSPITAL
PRIOR TO THE MERGER. CONSOLIDATION, OR ACQUISITION.

Article - Health - General

19-711.2.

(A)     A PERSON SHALL COMPLY WITH THE PROCEDURES REQUIRED BY
ARTICLE 48A, §§ 494 AND 494A TO THE EXTENT APPLICABLE BEFORE:

(1)      THAT PERSON MAY MAKE A TENDER FOR OR A REQUEST OR
INVITATION FOR TENDERS OF OR ENTER INTO AN AGREEMENT TO EXCHANGE
SECURITIES FOR OR ACQUIRE IN THE OPEN MARKET OR OTHERWISE, ANY VOTING
SECURITY OF A FOREIGN HEALTH MAINTENANCE ORGANIZATION THAT IS
AUTHORIZED TO DO BUSINESS IN THIS STATE OR ENTER INTO ANY OTHER SUCH
AGREEMENT IF, AFTER THE CONSUMMATION THEREOF, THAT PERSON WOULD,
DIRECTLY OR INDIRECTLY, OR BY CONVERSION OR BY EXERCISE OF ANY RIGHT TO
ACQUIRE BE IN CONTROL OF THE FOREIGN HEALTH MAINTENANCE ORGANIZATION.
THAT IS AUTHORIZED TO DO BUSINESS IN THIS STATE; OR

(2)      THAT PERSON MAY ENTER INTO AN AGREEMENT TO MERGE OR
CONSOLIDATE WITH, OR OTHERWISE TO ACQUIRE CONTROL OF, A FOREIGN
HEALTH MAINTENANCE ORGANIZATION THAT IS AUTHORIZED TO DO BUSINESS IN
THIS STATE.

(B)      (1) APPROVAL BY THE INSURANCE COMMISSIONER SHALL BE
GOVERNED BY ARTICLE 48A, § 494(E).

(2) PRIOR TO APPROVAL, THE INSURANCE COMMISSIONER SHALL
CONSULT WITH THE SECRETARY OF HEALTH AND MENTAL HYGIENE.

(C)      THE PROVISIONS OF THIS SECTION MAY NOT APPLY:

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