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<regulation prefix="Regulation" num=".02" citation="COMAR 10.24.01.02" title_num="10" subtitle_num="24" chapter_num="01" heading="Coverage.">
  <paragraph num="A.">
    <text>Except as provided in Regulations .03—.05 of this chapter or as otherwise provided by law, a CON is required before:</text>
    <paragraph num="(1)">
      <text>A new health care facility is built, developed, or established;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>An existing health care facility is moved to another site, unless the relocation is:</text>
      <paragraph num="(a)">
        <text>The result of a partial or complete replacement of an existing hospital or related institution, as defined in Health-General Article, §19-301, Annotated Code of Maryland, and is to another part of the site or immediately adjacent to the site of the existing hospital or related institution;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Of an existing health care facility owned or controlled by a merged asset system, subject to the provisions of Regulations .03E or .04A(2) of this chapter, whichever is applicable; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>By a hospital converting to a limited service hospital, subject to the provisions of Regulation .04A(4) of this chapter, and is to a site within the immediate area, as determined by the Commission, as described in §B of this regulation;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>The bed capacity of a health care facility is changed;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The type or scope of any health care service offered by a health care facility is changed, and the change:</text>
      <paragraph num="(a)">
        <text>Establishes a new medical service;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Establishes a new cardiac surgery, organ transplant surgery, burn treatment, or neonatal intensive care program;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Establishes a new home health agency, general hospice care program, or ambulatory surgical facility;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Builds or expands surgical capacity in a hospital, freestanding medical facility subject to rate regulation by the Health Services Cost Review Commission, or ambulatory surgical facility;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Results in:</text>
        <paragraph num="(i)">
          <text>The establishment of a new parent home health agency; or</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The expansion of an existing home health agency into a jurisdiction in which it was not previously authorized by the Commission to operate;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(f)">
        <text>Eliminates an existing medical service; or</text>
      </paragraph>
      <paragraph num="(g)">
        <text>Closes an existing health care facility or converts it to a non-health-related use; or</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>A hospital makes a capital expenditure, as defined in Health-General Article, §19-120(k), Annotated Code of Maryland, and in this chapter, that exceeds the hospital capital threshold, including a capital expenditure:</text>
      <paragraph num="(a)">
        <text>For the relocation of an existing health care facility owned or controlled by a merged asset system, except as provided in Regulation .03E of this chapter; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>By a relocated health care facility to permit the facility to offer a new health care service for which CON is otherwise required.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Definition of Immediate Area for Limited Service Hospital Conversion.</text>
    <paragraph num="(1)">
      <text>For the purpose of §A(2)(c) of this regulation, “immediate area” means a location on the site of the existing hospital, or on an adjacent site.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A hospital may provide evidence as to why the Commission should approve a site for a limited service hospital beyond the immediate area of the converting hospital.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The Commission may not approve a site for a limited service hospital unless the site is within:</text>
      <paragraph num="(a)">
        <text>A 5-mile radius of the site of the hospital proposing the conversion; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Its primary service area.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>A person may not divide a project into component parts except as permitted by this chapter. Commission staff shall issue a determination regarding whether two or more apparently individual projects actually represent component parts of a single project, considering, among other things, the timing of the projects, the functional areas of a facility to be affected, the number of construction contracts entered into, and whether expenditures under one contract depend upon the completion of a prior contract.</text>
  </paragraph>
  <paragraph num="D.">
    <text>Proposed Change After Acquisition. If a person acquires an existing health care facility or service without a CON, in accordance with Regulation .03 of this chapter, and proposes to change the health care services it provides or its bed capacity, the proposed change requires review and approval in accordance with §A of this regulation.</text>
  </paragraph>
  <paragraph num="E.">
    <text>A health maintenance organization, or health care facility that either controls, directly or indirectly, or is controlled by an HMO or a group of HMOs, shall obtain a CON before it builds, develops, operates, or participates in building, developing, or operating:</text>
    <paragraph num="(1)">
      <text>A hospital; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Any other health care project for which a CON is required under §A of this regulation, unless at least 90 percent of the patients who will receive health care services from the project will be individuals enrolled in that health maintenance organization.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>If a person is uncertain whether a project requires a Certificate of Need, the person shall request a determination of coverage in accordance with Regulation .14A of this chapter.</text>
  </paragraph>
</regulation>