Section 19-220 - Rate review and approval procedures.
§ 19-220. Rate review and approval procedures.
(a) Compilation of information.-
(1) To have the statistical information needed for rate review and approval, the Commission shall compile all relevant financial and accounting information.
(2) The information shall include:
(i) Necessary operating expenses;
(ii) Appropriate expenses that are incurred in providing services to patients who cannot or do not pay;
(iii) Incurred interest charges; and
(iv) Reasonable depreciation expenses that are based on the expected useful life of property or equipment.
(b) Definition of regulated rates.- The Commission shall define, by regulation, the types and classes of charges that may not be changed, except as specified in § 19-222 of this subtitle.
(c) Compilation of rate structures.- The Commission shall obtain from each facility its current rate schedule and each later change in the schedule that the Commission requires.
(d) Reasonableness of rates.- The Commission shall:
(1) Permit a nonprofit facility to charge reasonable rates that will permit the facility to provide, on a solvent basis, effective and efficient service that is in the public interest; and
(2) Permit a proprietary profit-making facility to charge reasonable rates that:
(i) Will permit the facility to provide effective and efficient service that is in the public interest; and
(ii) Based on the fair value of the property and investments that are related directly to the facility, include enough allowance for and provide a fair return to the owner of the facility.
(e) Consideration of certain costs.- In the determination of reasonable rates for each facility, as specified in this section, the Commission shall take into account all of the cost of complying with recommendations made, under Subtitle 1 of this title, on comprehensive health planning.
(f) Certain rates to be permitted.- In reviewing rates or charges or considering a request for change in rates or charges, the Commission shall permit a facility to charge rates that, in the aggregate, will produce enough total revenue to enable the facility to meet reasonably each requirement specified in this section.
(g) Executive sessions.- Except as otherwise provided by law, in reviewing rates or charges or considering a request for changes in rates or charges, the Commission may not hold executive sessions.
[An. Code 1957, art. 43, § 568V; 1982, ch. 21, § 2; 1985, ch. 112; 1988, ch. 6, § 1; 1999, ch. 702, § 2.]