Maryland Health - General Section 19-121

      (a)      In this section, "health maintenance organization" means a health maintenance organization under Subtitle 7 of this title.

      (b)      (1)      A health maintenance organization or a health care facility that either controls, directly or indirectly, or is controlled by a health maintenance organization shall have a certificate of need before the health maintenance organization or health care facility builds, develops, operates, purchases, or participates in building, developing, operating, or establishing:

                  (i)      A hospital, as defined in § 19-301 of this title, or an ambulatory surgical facility or center, as defined in § 19-114(b) of this subtitle; and

                  (ii)      Any other health care project for which a certificate of need is required under § 19-120 of this subtitle if that health care project is planned for or used by any nonsubscribers of that health maintenance organization.

            (2)      Notwithstanding paragraph (1)(i) of this subsection, a health maintenance organization or a health care facility that either controls, directly or indirectly, or is controlled by a health maintenance organization is not required to obtain a certificate of need before purchasing an existing ambulatory surgical facility or center, as defined in § 19-114(b) of this subtitle.

      (c)      An application for a certificate of need by a health maintenance organization or by a health care facility that either controls, directly or indirectly, or is controlled by, a health maintenance organization shall be approved if the Commission finds that the application:

            (1)      Documents that the project is necessary to meet the needs of enrolled members and reasonably anticipated new members for the services proposed to be provided by the applicant; and

            (2)      Is not inconsistent with those sections of the State health plan or those sections of the institution-specific plan that govern hospitals, as defined in § 19-301 of this title, and ambulatory surgical facilities or centers, as defined in § 19-114(b) of this subtitle, or health care projects for which a certificate of need is required under subsection (b)(1)(ii) of this section.