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PARRIS N. GLENDENING, Governor
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H.B. 214
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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
contracts with an immediate family member of the health care practitioner, in which
the immediate family member's compensation is not based on the referral;
(v) An arrangement for compensation which is provided by a health
care entity to a health care practitioner or the immediate family member of the health
care practitioner to induce the health care practitioner or the immediate family
member of the health care practitioner to relocate to the geographic area served by
the health care entity in order to be a member of the medical staff of a hospital, if:
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- 4305 -
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