PARRIS N. GLENDENING, Governor

Ch. 499

(2) make recommendations by January 1, 1906 December 1, 1995, to the
Senate Finance Committee, the House Economic Matters Committee, and the House
Environmental Matters Committee, regarding the financing of uncompensated care.

SECTION 10. 12. AND BE IT FURTHER ENACTED, That the Department of
Fiscal Services, in consultation with the Health Services Cost Review Commission, shall
assess the current method for financing graduate medical education in hospital rates and
make recommendations by January 1, 1996, December 1, 1995 to the Senate Finance
Committee, the House Economic Matters Committee, and the House Environmental
Matters Committee, regarding a plan to distribute equitably the reasonable costs of
graduate medical education and assure the integrity of the payment system.

In developing the recommendations and plan, the Department of Fiscal Services
and, in consultation with the Commission, shall consider the appropriate allocation of
graduate medical education funds to finance the training of physicians in both hospital and
nonhospital settings, consider the appropriate mix and overall aggregate supply of health care
professionals, and consider the marketplace advantages associated with having a graduate
medical education program, including the recruitment of out-of-State residents. Any plan
developed shall assure that the methods used to finance the total reasonable costs of
graduate medical education meet the following standards: (1) are in the public interest;
(2) will equitably distribute the reasonable costs of graduate medical education; (3) will
fairly determine the reasonable costs of graduate medical education; (4) will fairly
determine the assessment for the costs of graduate medical education; and (5) will not
result in significantly increasing costs to Medicare or in the loss of Maryland's Medicare
waiver under § 1814(b) of the Social Security Act.

Upon approval of the plan by the Senate Finance Committee, the House Economic
Matters Committee, and the House Environmental Matters Committee, the Commission
may adopt regulations establishing alternative methods for financing the reasonable total
costs of graduate medical education. Regulations to implement the recommendations and
plan for financing the costs of graduate medical education shall be proposed by the Health
Services Cost Review Committee 60 days after the review of the recommendations and plan
under this Section.

Any The plan shall also provide that any funds generated under an alternative
method adopted by the Commission under this section may be used only to finance
graduate medical education.

SECTION 13. AND BE IT FURTHER ENACTED, That:

(a) The General Assembly finds that:

(1)     Maryland's all-payor hospital rate regulatory system remains the foundation
for incremental health care reform in this State;

(2)    A comprehensive, strategic plan for the health care delivery system in this
State is required to determine the effectiveness of the current regulatory system, determine what
measures need to be taken to ensure the equitable provision of quality health care in the future,
and ensure that the high level of quality health care currently provided in this State will
continue to benefit all citizens of the State;

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