<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".07-2" citation="COMAR 10.37.10.07-2" title_num="10" subtitle_num="37" chapter_num="10" heading="Outpatient Services — Freestanding Medical Facility.">
  <paragraph num="A.">
    <text>Definition. In this regulation, “freestanding medical facility” means a freestanding medical facility licensed under Health-General Article, Title 19, Subtitle 3A, Annotated Code of Maryland.</text>
  </paragraph>
  <paragraph num="B.">
    <text>The following outpatient services provided at a freestanding medical facility are considered hospital services under Health-General Article, §19-201, Annotated Code of Maryland:</text>
    <paragraph num="(1)">
      <text>Emergency Services;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Observation Services; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Associated Ancillary Services, such as laboratory, radiology, imaging, EKG, and Medical/Surgical Supplies and Drugs.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>In accordance with Health-General Article, §19-201, Annotated Code of Maryland, the Commission’s rate-setting jurisdiction extends to those outpatient services provided at a freestanding medical facility, as designated by the Commission.</text>
  </paragraph>
  <paragraph num="D.">
    <text>A freestanding medical facility or a proposed freestanding medical facility that desires to provide a service not designated in §B of this regulation (an undesignated service) must receive a determination under the provisions of this regulation.</text>
  </paragraph>
  <paragraph num="E.">
    <text>Commission Approval.</text>
    <paragraph num="(1)">
      <text>A freestanding medical facility may not charge a Commission-approved rate for an undesignated service without prior Commission staff approval.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A freestanding medical facility may not open a new outpatient service, relocate an existing outpatient service, or convert an existing outpatient service from regulated or unregulated status without a prior determination from the Commission’s staff as to whether the service constitutes a hospital service subject to Commission rate regulation. A request for determination shall be made in writing at least 60 days before the contemplated action.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Upon request for a determination, the Commission’s staff shall:</text>
    <paragraph num="(1)">
      <text>Review the information presented;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Consult with appropriate parties;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Visit the site of the service as it considers necessary; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Notify the freestanding medical facility of its determination as soon as practicable.</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>In deciding whether the service constitutes a hospital service subject to Commission rate regulation, Commission staff shall consider, among other things, the following criteria:</text>
    <paragraph num="(1)">
      <text>Cost of the service;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>In consultation with Maryland Health Care Commission (MHCC) staff, access to and need for the service in the community;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Feasibility of providing the outpatient service in the community on an unregulated basis; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Impact of the service on the All-Payer Model including, but not limited to, the Total Cost of Care limitations as prescribed in the All-Payer Model Agreement with the Center for Medicare and Medicaid Innovation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>Based on the consideration of the criteria stated in §G of this regulation, the Commission staff shall make its determination on the request made under §E of this regulation within a reasonable period of time, taking into account, among other things, whether either a Certificate of Need application to establish a freestanding medical facility or a request for exemption from Certificate of Need to convert a licensed general hospital to a freestanding medical facility is pending before the MHCC and, if so, the time frame for staff to comment to MHCC on the financial feasibility of the proposed project.</text>
  </paragraph>
  <paragraph num="I.">
    <text>A freestanding medical facility that fails to obtain, or violates, a staff determination on the regulated status of a given service may be subject to fines for inaccurate reporting under COMAR 10.37.01.03R and paybacks for inappropriate charges made during the time a staff determination on an outpatient service was not obtained or adhered to.</text>
  </paragraph>
</regulation>