<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".04" citation="COMAR 10.24.01.04" title_num="10" subtitle_num="24" chapter_num="01" heading="Exemption from Certificate of Need Review.">
  <paragraph num="A.">
    <text>The Commission may exempt from the requirement of CON review and approval the following actions:</text>
    <paragraph num="(1)">
      <text>Merger or consolidation of two or more hospitals or other health care facilities, if the facilities or an organization that operates the facilities give the Commission 45 days written notice of their intent to merge or consolidate;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Relocation of an existing health care facility owned or controlled by a merged asset system, if:</text>
      <paragraph num="(a)">
        <text>The relocation is to a site outside:</text>
        <paragraph num="(i)">
          <text>The primary service area of the hospital to be relocated but within the primary service area of the merged asset system; or</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The service area of the non-hospital health care facility to be relocated but within the primary service area of the merged asset system; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>The relocation of the existing health care facility does not:</text>
        <paragraph num="(i)">
          <text>Change the type or scope of health care services offered; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>In the case of a hospital, require a capital expenditure for its construction that exceeds the hospital capital threshold, adjusted for inflation, except as provided by Regulation .03J of this chapter;</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>A change in the bed capacity of an existing health care facility pursuant to the consolidation or merger of two or more health care facilities, or conversion of a health care facility or part of a health care facility to a non-health-related use, except as provided in Regulation .03F of this chapter;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>A change in the type or scope of the health care services offered by a health care facility, if, at least 45 days before increasing or decreasing the volume of one or more health care services, the Commission finds that the proposed change is pursuant to the:</text>
      <paragraph num="(a)">
        <text>Consolidation or merger of two or more health care facilities;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Conversion of all or part of a health care facility to a non-health-related use; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Conversion of a hospital to a limited service hospital;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>A capital expenditure that exceeds the review threshold for capital expenditure made as part of a consolidation or merger of two or more health care facilities, or conversion of a health care facility or part of a health care facility to a non-health-related use; or</text>
    </paragraph>
    <paragraph num="(6)">
      <text>The establishment of a freestanding medical facility through the conversion of an acute general hospital, as provided in §F of this regulation and in COMAR 10.24.19.04C.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Unless otherwise provided in this chapter for a specific type of health care facility, complete notice of intent to seek exemption from CON review shall be filed with the Commission at least 45 days before the intended action, and shall include:</text>
    <paragraph num="(1)">
      <text>The name and location of each affected health care facility;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A general description of the proposed project including, in the case of mergers and consolidations, any proposed:</text>
      <paragraph num="(a)">
        <text>Conversion, expansion, relocation, or reduction of one or more health care services;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Renovation of existing facilities;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>New construction;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Relocation or reconfiguration of existing medical services; or</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Change in bed capacity at each affected facility;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>The scheduled date of the project's completion;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Identification of each outstanding public obligation;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Information demonstrating that the project:</text>
      <paragraph num="(a)">
        <text>Is not inconsistent with the State Health Plan;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Will result in the delivery of more efficient and effective delivery of health care services; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Is in the public interest; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(6)">
      <text>Any other information, analyses, or other requirements established in State Health Plan regulation for requests seeking exemption from CON review.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Notice by the Commission to the Public, Elected Officials, and Other State Agencies.</text>
    <paragraph num="(1)">
      <text>Within 5 days after it receives a complete Notice of Intent from a health care facility seeking exemption from CON review, the Commission shall publish notice of its receipt:</text>
      <paragraph num="(a)">
        <text>In at least one newspaper of general circulation in the affected area;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>In the next available issue of the Maryland Register; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>On the Commission’s website.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>The Commission shall mail the same notice to elected public officials in whose district or jurisdiction the exemption from CON review is proposed.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The Commission shall solicit comment from the affected public, in evaluating whether the action or project proposed for exemption from CON review is in the public interest.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Public Informational Hearing.</text>
    <paragraph num="(1)">
      <text>An acute general hospital shall hold a public informational hearing in the jurisdiction where it is located within 30 days after it has filed with the Commission notice of its intent to:</text>
      <paragraph num="(a)">
        <text>Close;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Partially close, if the hospital is located in a jurisdiction with fewer than three acute general hospitals; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Convert to a limited service hospital or freestanding medical facility.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Before holding the public informational hearing, the hospital shall consult with the Commission, to ensure that:</text>
      <paragraph num="(a)">
        <text>Within 5 days of notifying the Commission of its intent to close, partially close, or convert, the hospital has provided public notice of the proposed closure or conversion and of the time and location of the required public informational hearing and how the public can electronically obtain additional information, including publication in at least one newspaper of general circulation in the affected area; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The public hearing will address the information required by §D(3) of this regulation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Requirements for a Public Informational Hearing.</text>
      <paragraph num="(a)">
        <text>The acute general hospital proposing to close, partially close, or convert to a limited service hospital or freestanding medical facility shall hold a public informational hearing at the hospital or if that is not feasible at a public meeting area near the hospital.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The hospital shall post a notice of the public informational hearing in public areas of its facility and on the landing page of its website.</text>
      </paragraph>
      <paragraph num="(c)">
        <text>The hospital shall identify to the public the names of the senior management and Board of Directors attending the hearing;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>The hospital shall present at least the following information at the public informational hearing:</text>
        <paragraph num="(i)">
          <text>The reasons for the closure, partial closure, or conversion;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The plan for transitioning acute care services previously provided by the hospital to residents of the hospital service area;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>The plan for addressing the health care needs of the residents of the hospital service area;</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>The plan for retraining and placing displaced employees;</text>
        </paragraph>
        <paragraph num="(v)">
          <text>The plan for the hospital’s physical plant and site; and</text>
        </paragraph>
        <paragraph num="(vi)">
          <text>The proposed timeline for the closure, partial closure, or conversion to a freestanding medical facility.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(e)">
        <text>The public informational hearing shall be recorded.</text>
      </paragraph>
      <paragraph num="(f)">
        <text>Within 10 business days after the public informational hearing, the hospital shall make available on its website a recording of the public informational hearing and provide a written summary of the hearing, which shall also be provided to:</text>
        <paragraph num="(i)">
          <text>The Governor;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The Secretary;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>The governing body of the jurisdiction in which the hospital is located;</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>The local health department and the local board of health or similar body for the jurisdiction in which the hospital is located;</text>
        </paragraph>
        <paragraph num="(v)">
          <text>The Commission; and</text>
        </paragraph>
        <paragraph num="(vi)">
          <text>Subject to State Government Article, §2-1257, Annotated Code of Maryland, the Senate Finance Committee, the House Health and Government Operations Committee, and the members of the General Assembly who represent the district in which the hospital is located.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Commission Action.</text>
    <paragraph num="(1)">
      <text>Unless otherwise provided in this chapter for a specific type of health care facility, the Commission shall issue an exemption from CON review to the health care facility or the merged asset system seeking this determination within 45 days after it receives the notice of intent required by §B of this regulation, if:</text>
      <paragraph num="(a)">
        <text>The facility or system has provided the information required by the notice of intent, and has held a public informational hearing if required by §D of this regulation; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The Commission, in its sole discretion, finds that the action proposed:</text>
        <paragraph num="(i)">
          <text>Is not inconsistent with the State Health Plan or an institution-specific plan developed by the Commission under Health-General Article, §19-119, Annotated Code of Maryland;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Will result in more efficient and effective delivery of health care services; and</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Is in the public interest.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>For any project that the Commission may exempt from CON review under §A of this regulation, for which a final Commission decision has not been issued within 45 days after it receives a complete notice of intent as required by §B of this regulation, Commission staff shall provide a status report at the next Commission meeting and any subsequent Commission meeting stating the reasons for the delay and the expected time frame for issuing its final decision.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>CON review is not required and the exemption request shall be deemed approved for any project which the Commission may exempt from CON review under §A of this regulation if final action by the Commission does not occur within 90 days after the facility or system has provided complete notice of intent as required by §B of this regulation and has held a public hearing if required by §D of this regulation.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Upon request, Commission staff shall provide written confirmation that an exemption request has been deemed approved in accordance with §E(3) of this regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Freestanding Medical Facility.</text>
    <paragraph num="(1)">
      <text>In accordance with COMAR 10.24.19.04C and this regulation, the Commission may exempt from CON review the establishment of a freestanding medical facility as a result of a conversion from a licensed acute general hospital.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>At least 60 days before the conversion, written notice of intent to convert the licensed general hospital to a freestanding medical facility shall be filed with the Commission in accordance with COMAR 10.24.19.04C.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Provided that all the requirements of this regulation and COMAR 10.24.19.04C are met, the Commission shall grant the exemption if it finds, in its sole discretion, that the conversion:</text>
      <paragraph num="(a)">
        <text>Is consistent with the State Health Plan;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Will result in the delivery of more efficient and effective health care services;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Will maintain adequate and appropriate delivery of emergency care within the statewide emergency medical services system as determined by the State Emergency Medical Services Board; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Is in the public interest.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>The Commission may approve, approve with conditions, or deny the requested exemption.</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Failure to maintain compliance with conditions on an exemption or with the time frame for completion of the conversion may result in withdrawal of the exemption issued by the Commission in accordance with Regulation .12 of this chapter. An exemption holder may request approval of a reasonable modification to the conversion timeline in accordance with Regulation .12A(4) of this chapter.</text>
    </paragraph>
  </paragraph>
</regulation>