§ 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.

HISTORY: An. Code 1957, art. 43, § 568V; 1982, ch. 21, § 2; 1985, ch. 112; 1988, ch. 6, § 1; 1999, ch. 702, § 2.