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Ch. 229
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PARRIS N. GLENDENING, Governor
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equipment, or for the sale of property or of a health care practice, from the
definition of "compensation arrangement" for purposes of certain prohibitions
and disclosure requirements relating to patient referrals; exempting from a
certain prohibition against patient referrals a health care practitioner who
refers a patient to a hospital in which the practitioner has a beneficial interest
if the practitioner meets certain requirements; and generally relating to certain
patient referrals by certain health care practitioners.
BY repealing and reenacting, with amendments,
Article - Health Occupations
Section 1-301(c) and 1-302
Annotated Code of Maryland
(1994 Replacement Volume and 1999 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Health Occupations
1-301.
(c) (1) "Compensation arrangement" means any agreement or system
involving any remuneration between a health care practitioner or the immediate
family member of the health care practitioner and a health care entity.
(2) "Compensation arrangement" does not include:
(i) Compensation or shares under a faculty practice plan or a
professional corporation affiliated with a teaching hospital and comprised of health
care practitioners who are members of the faculty of a university;
(ii) Amounts paid under a bona fide employment agreement
between a health care entity and a health care practitioner or an immediate family
member of the health care practitioner;
(iii) An arrangement between a health care entity and a health care
practitioner or the immediate family member of a health care practitioner for the
provision of any services, as an independent contractor, if:
1. The arrangement is for identifiable services;
2. The amount of the remuneration under the arrangement
is consistent with the fair market value of the service and is not determined in a
manner that takes into account, directly or indirectly, the volume or value of any
referrals by the referring health care practitioner; and
3. The compensation is provided in accordance with an
agreement that would be commercially reasonable even if no referrals were made to
the health care provider;
(iv) Compensation for health care services pursuant to a referral
from a health care practitioner and rendered by a health care entity, that employs or
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- 1489 -
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