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<regulation prefix="Regulation" num=".01" citation="COMAR 10.37.12.01" title_num="10" subtitle_num="37" chapter_num="12" heading="Definitions.">
  <paragraph num="A.">
    <text>In this chapter, the following terms have the meanings indicated.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Terms Defined.</text>
    <paragraph num="(1)">
      <text>“Cross-subsidization” means the practice of charging a purchaser or class of purchaser more than the cost of care for a service with the result that another purchaser or class of purchaser is charged less than the cost of care for the same service.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>“Discount” means a reduction to Commission-approved rates.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>“Fixed-price contract” means an agreement or contract, written or oral, that sets forth a preestablished price for the provision of hospital services, or for the provision of hospital services in combination with physician or other services, that differs from Commission-approved rates.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Related Entity.</text>
      <paragraph num="(a)">
        <text>“Related entity” means an entity that is entering into at-risk arrangements for hospital-provided services and which is either subject to the exercise of control or significant influence by the management or operating policies of a hospital or exercises control over the management or operating policies of a hospital. In either event, one of the entities is, or may be, prevented from fully pursuing its own separate interests by virtue of its relationship with the other entity.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Examples of “related entity” transactions include transactions between:</text>
        <paragraph num="(i)">
          <text>A parent and its subsidiaries;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Subsidiaries of a common parent;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>An entity and trusts for the benefit of employees that are managed by or under the trusteeship of the entities' management;</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>An entity and its principal owners, management, or members of their immediate families;</text>
        </paragraph>
        <paragraph num="(v)">
          <text>Affiliates (an entity that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control of another entity);</text>
        </paragraph>
        <paragraph num="(vi)">
          <text>An entity and a joint venture whose participants include the entity or a related entity; and</text>
        </paragraph>
        <paragraph num="(vii)">
          <text>Two entities, both of which are related, directly or indirectly, to a common entity.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </paragraph>
</regulation>