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H.B. 214
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VETOES
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May 18, 2000
The Honorable Casper R. Taylor, Jr.
Speaker of the House
State House
Annapolis MD 21401
Dear Mr. Speaker:
In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 214 - Patient Referrals by Health Care Practitioners - Prohibition
- Exemptions.
This bill amends current law that relates to a health care practitioner's referring
patients to a health care entity where the practitioner has a beneficial interest in or
a compensation arrangement with the health care entity. This bill provides that a
payment made for an equipment rental or lease is not a compensation arrangement if
the payment is at fair market value and in accordance with an arm's length
transaction. This bill also provides that a payment made for a property or health care
practice sale is not a compensation arrangement if the payment is at fair market
value, in accordance with an arm's length transaction, and in accordance with an
agreement that would be commercially reasonable even if no referrals were made.
In addition, this bill provides that the prohibition against a health care practitioner's
referring a patient to a hospital in which the practitioner has a beneficial interest
does not apply if the practitioner is authorized to perform services at the hospital and
the ownership or investment interest is in the hospital itself and not solely in a
subdivision of the hospital.
Senate Bill 111, which was passed by the General Assembly and signed by me on May
11, 2000, accomplishes the same purpose. Therefore, it is not necessary for me to sign
House Bill 214.
Sincerely,
Parris N. Glendening
Governor
House Bill No. 214
AN ACT concerning
Patient Referrals by Health Care Practitioners - Prohibition - Exemptions
FOR the purpose of excluding certain payments made for the rental or lease of
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.
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- 4304 -
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