PARRIS N. GLENDENING, Governor                             Ch. 499

BY repealing and reenacting, with amendments,
Article - Health - General

Section 19-101, 19-115(g), 19-118, 19-120, and 19-706(k) 19-705.1(b)(1)
Annotated Code of Maryland
(1990 Replacement Volume and 1994 Supplement)

BY adding to

Article - Health - General

Section 19-115(i)(5)(x) and (7); 19-115(j)(7); 1-301 to be under the new subtitle
"Subtitle 3. Miscellaneous Provisions"; and 19-3B-01 through 19-3B-09,
inclusive, to be under the new subtitle "Subtitle 3B. Freestanding Ambulatory
Care Facilities"

Annotated Code of Maryland

(1990 Replacement Volume and 1994 Supplement)

BY repealing

Article - Health - General

Section 19-1001 through 19-1007, inclusive, and the subtitle "Subtitle 10. Major
Medical Equipment"; and 19-1101 through 19-1109, inclusive, and the
subtitle "Subtitle 11. Freestanding Birthing Centers"; and 19-1507(h)

Annotated Code of Maryland

(1990 Replacement Volume and 1994 Supplement)

Preamble

WHEREAS, The health care needs of the citizens of Maryland require comprehensive
planning to ensure the provision of quality health care, fair access and availability, and a
productively competitive and innovative health care industry; and

WHEREAS, The all-payor hospital rate regulatory system is the cornerstone of
Maryland's longstanding history of pioneering, innovative public policy relating to health
care delivery that is tailored to the unique needs of the citizens of this State; and

WHEREAS, Today, this system serves as a national model that has successfully
demonstrated that the cooperative establishment of appropriate incentives can yield
enormous social benefits as well as successfully control costs; and

WHEREAS, Maryland's all-payor system was established in the mid-1970's and is
based on the fundamental principles of controlling costs, while broadening access, and
ensuring equity and accountability; and

WHEREAS, Maryland hospital costs have gone from 25 percent above the national
average in 1977, to more than 8 percent below the national average in 1994 and the
reduction has saved government, business, labor, and consumers in Maryland more than
$10 billion; and

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