JANICE HOLLABAUGH v. MRO CORPORATION
No. 27
In the Supreme Court of Maryland
July 10, 2025
Opinion by Fader, C.J.
September Term, 2024. Argued: April 7, 2025. Circuit Court for Baltimore County, Case No. C-03-CV-22-003166.
CONFIDENTIALITY OF MEDICAL RECORDS ACT – STATUTORY STANDING – MOTION TO DISMISS
The Confidentiality of Medical Records Act provides that a “health care provider or any other person who knowingly violates any provision” of the Act is “liable for actual damages.” Although the petitioner and cross-respondent was not the party who made the request or paid the fee to the provider, she alleged in her complaint that she reimbursed her attorney in full for the payment made. At the motion to dismiss stage, the petitioner‘s allegations created a reasonable inference of facts sufficient to support her standing.
CONFIDENTIALITY OF MEDICAL RECORDS ACT – STATUTORY INTERPRETATION – FEE FOR RETRIEVAL AND PREPARATION
The Confidentiality of Medical Records Act seеks to protect the privacy of patients and maintain the confidentiality of medical records by establishing rules for health care providers’ maintenance and disclosure of those records. As part of that statutory scheme, the Act establishes that the providers may charge a reasonable cost-based fee to certain persons for copying and providing information requested, and it authorizes and caps certain types of fees, including “a preparation fee not to exceed $22.88 for medical record retrieval and preparation.” The plain meaning and statutory context of that provision confirm that health care providers may not charge a preparation fеe for a search that does not result in copying and providing the information requested.
BACKGROUND
A. Factual Background1
In February 2020, Janice Hollabaugh, the petitioner and cross-respondent, authorized her attorney to request her medical records from a health care provider for use in pursuing personal injury claims. That provider contracted with MRO Corporation, the respondent and cross-petitioner, to fulfill the request. MRO then sent Ms. Hollabaugh‘s attornеy a document titled “Cancellation Invoice.” The ambiguously written document
Although MRO did not produce any records, it charged Ms. Hollabaugh‘s counsel a fee of $22.88 “for searching for her Medical Records.” Ms. Hollabaugh‘s attorney paid the fee, and she reimbursed him in full.
B. Procedural History
In August 2022, Ms. Hollabaugh filed a putative class action lawsuit in the Circuit Court for Baltimore County. Count I of the first amended complaint alleges that the fee MRO charged for searching for her medical records violates
After an unsuccessful attempt to remove the case to federal court, MRO moved to dismiss, arguing among other things that
The Appellate Court of Maryland affirmed on both issues. Hollabaugh v. MRO Corp., No. 1049, Sept. Term, 2023, 2024 WL 2858350, at *1 (Md. App. June 6, 2024). The court held that Ms. Hollabaugh had standing, id. at *3-4, but it determined that
We granted Ms. Hollabaugh‘s petition for a writ of certiorari to decide whether the Confidentiality Act authorizes MRO‘s search fee, and we granted MRO‘s cross-petition on the issue of whether Ms. Hollabaugh has standing to raise that claim.
STANDARD OF REVIEW
This Court reviews without deference the grant of a motion to dismiss for failure to state a claim. Elsberry v. Stanley Martin Cos., LLC, 482 Md. 159, 178 (2022). In its review, the Court “must assume the truth of, and view in a light most favorable to the non-moving party, all well-pleaded facts and allegations contained in the complaint, as well as all inferences that may reasonably be drawn from them[.]” RRC Northeast, LLC v. BAA Maryland, Inc., 413 Md. 638, 643 (2010).
DISCUSSION
I. STATUTORY BACKGROUND
The Confidentiality Act seeks to protect the privacy of patients and ensure the accuracy and confidentiality of medical records by establishing “clear and certain rules” for health care providers’ maintenance and disclosure of records. See 1990 Md. Laws, Ch. 480 (preamble). The Act‘s preamble identifies the policy concerns underlying it, including the significant emotional and financial harm that may result from improper use or disclosure of records and patients’ need to access records so as “to make informed decisions concerning their health care” or to correct inaccurate or incomplete information about themselves. See id. The Act regulates a wide swath of conduct related to the maintenance and disclosure of medical records, including confidentiality requirements (
II. STANDING
We begin with MRO‘s contention that Ms. Hollabaugh lacks standing to bring her claim because her attorney, rather than Ms. Hollabaugh herself, requested her records and paid MRO‘s fee. “A litigant must have standing to maintain a judicial action.” Long Green Valley Ass‘n v. Bellevale Farms, Inc., 432 Md. 292, 313 (2013). “Standing, in its most conventional sense, refers primarily to who may ‘invoke the judicial process in a particular instance.‘” In re Jacobson, 256 Md. App. 369, 393-94 (2022) (quoting State Ctr., LLC v. Lexington Charles P‘ship, 438 Md. 451, 502 (2014)). A plaintiff‘s standing “may be grounded on a statute conferring a legal interest or privilege.” Long Green Valley Ass‘n, 432 Md. at 313.
Ms. Hollabaugh‘s claim is grounded in the Cоnfidentiality Act, which regulates the fees health care providers may charge persons in interest to comply with medical records requests,
Ms. Hollabaugh‘s first amended complaint alleges that she authorized her attorney to request the records, and when he paid the fee MRO charged, she reimbursed him in full. A reasonable inferencе from that allegation is that she was required to reimburse him for the fee. Because the parties apparently did not engage in discovery relative to standing before the circuit court dismissed the complaint, we are left at this stage of the proceedings
III. THE “PREPARATION FEE” FOR “MEDICAL RECORDS RETRIEVAL AND PREPARATION”
We turn next to whether Ms. Hollabaugh has stated a claim against MRO for violation of
“The goal of statutory construction is to discern and carry out the intent of the Legislature.” Westminster Mgmt., LLC v. Smith, 486 Md. 616, 644 (2024) (quoting Blue v. Prince George‘s County, 434 Md. 681, 689 (2013)). “Our search for legislative intent begins with the text of the provision we are interpreting, viewed not in isolation but ‘within the context of the statutory scheme to which it belongs.‘” Id. (quoting Nationstar Mortg. LLC v. Kemp, 476 Md. 149, 169 (2021)). “Our review of the text is wholistic, seeking to give effect to all of what the General Assembly included and not to add anything that the General Assembly omitted. In our analysis of statutory text, we therefore take the language as we find it, neither adding to nor deleting from it[.]” Id.
“When statutory terms are undefined, we often look to dictionary definitions as a starting point, to identify the ‘ordinary and popular meaning’ of the terms, before broadening our analysis to consider the other language of the provisions in which the terms appеar and the statutory scheme as a whole[.]” Id. (quoting Comptroller v. FC-GEN Operations Invs. LLC, 482 Md. 343, 390 (2022)). “Presuming the General Assembly ‘intends its enactments to operate together as a consistent and harmonious body of law,’ we also ‘seek to reconcile and harmonize the parts of a statute, to the extent possible consistent with the statute‘s object and scope.‘” Id. at 644-45 (quoting Wheeling v. Selene Fin. LP, 473 Md. 356, 377 (2021)). If, after exhausting the tools available for our textual analysis, we conclude a statute is unambiguous, “our inquiry generally ceases at that point
One purpose of the Confidentiality Act is to ensure that patients can access their medical records. See 1990 Md. Laws, Ch. 480 (preamble). In furthering that purpose, the Act requires health care providers to create a framework for fulfilling records requests and maintaining the confidentiality of medical records throughout the request process. The Act requires providers to comply with requests for records and generally allows them to charge fees for doing so. The fee provisions of
The same is true throughout
That applies as well to
The logical prerequisite for a “reasonable cost-based fee” for “copying and mailing” and the “actual cost for postage and handling” is the existence of a medical record responsive to the request that may be copied and provided to the requester. The fee for “retrieval and preparation” shares that prerequisite. Although neither word is defined by
The ordinary meanings of both “retrieval” and “preparation” thus imply that there is something capable of being obtained and made ready for use. Here, the very thing to be retrieved and prepared was absent. And even if either of those terms alone could be undеrstood to apply to an action in the absence of a medical record, the Act authorizes a fee only for “retrieval and preparation” of a medical record.
Finally, viewed as a whole, the components of
Given the plain language meaning of “retrieval” and “preparation” and the statutory context in which those terms appear, we conclude that the Confidentiality Act‘s authorization of “a preparation fee not to exceed $22.88 for medical record retrieval and preparation” allows that fee to be charged only when the health care provider actually
MRO‘s additional arguments are unpersuasive. MRO contends that it can charge for a search that does not result in a retrieval because searching for records is a necessary, component part of “retrieval.” In doing so, MRO emphasizes that the General Assembly used the noun form “retrieval,” rather than the verb form “retrieve,” and that the fee is authorized “for” retrieval, suggesting it covers actions “going towards” retrieval. MRO argues that that reflects an intent to capture the process of retrieving, which necessarily involves a search and which need not necessarily be sucсessful.
We disagree for two reasons. First, although we agree that a search for medical records is a necessary antecedent to retrieving those records, that does not necessarily make it a component of that retrieval. Retrieval is a similarly necessary antecedent to preparation of records, but they are separate steps, as are handling and mailing. Moreover, even if we were to view a search as an integral component of the process of retrieving a record—
Second, “retrieve” does not have a meaningfully different interpretation than “retrieval” for these purposes. Retrieve is defined as “get or bring (something) back” or “regain possession of,” Retrieve, New Oxford American Dictionary (3d ed. 2010), and, most relevantly, “to get back again” or “to return . . . successfully,” Retrieve, Merriam-Webster‘s Collegiate Dictionary (11th ed. 2014). Those definitions also require that there is a something that exists, as well as the ultimate acquisition of that something. We do not typically conceive of nouns that describe their verb form as encompassing only a subpart of the action or process they describe. Take, for example, “arrive” and “arrival.” An individual‘s arrival at an event may involve the drive to the venue. But if the individual
MRO also argues that our interpretation of
It is also notable that the federal government expressly limits search fees while allowing other fees in connection with fulfilling certain records requests.
In sum, the General Assembly has made decisions concerning when providers may charge fees, what those fees may be charged for, and the amount of those fees for complying with obligations to provide medical records. That it has drawn lines in places MRO might not agree with does not make those lines illogical.11
For the same reason, we do not agree with the rationale in the thoughtful opinion of our Appellate Court colleagues. As that court noted, one purpose of the Confidentiality
To be sure, MRO makes policy-based arguments in favor of allowing providers to charge fees for unsuccessful searches that may be sound. A provider certainly expends at least some uncompensated effort in conducting a search. And a no-records response may provide information that is valuable for the requester, even if it is not the information requested. MRO also suggests that if providers cannot charge for unsuccessful searches, they will be inundated with meritless requests and overwhelmed by the cost of complying with those requests, a contention we are not in a position to assess on this record. Regardless, such policy-based arguments are for the General Assembly, not this Court.
CONCLUSION
In sum, we hold that: (1) at the motion to dismiss stage, the allegations of Ms. Hollabaugh‘s operative complaint were adequate to support the circuit court‘s conclusion that she has standing to pursue the claim before us; and (2)
JUDGMENT OF THE APPELLATE COURT OF MARYLAND AFFIRMED IN PART AND REVERSED IN PART, WITH INSTRUCTIONS TO REMAND TO THE CIRCUIT COURT FOR BALTIMORE COUNTY FOR PROCEEDINGS CONSISTENT WITH THIS OPINION; COSTS TO BE PAID BY RESPONDENT / CROSS-PETITIONER.
Notes
(3)(i) Except as provided in subparagraph (iii) of this paragraph, for a copy of a medical record requested by a person in interest or any other authorized person under paragraph (2)(ii) of this subsection, a health care provider may charge a fee for copying and mailing not exceeding 76 cents for each page of the medical record.
(ii) In addition to the fee charged under subparagraph (i) оf this paragraph, a hospital or a health care provider may charge:
- Subject to the fee limitations that apply to persons in interest under 45 C.F.R. 164.524 and any guidance on those limitations issued by the U.S. Department of Health and Human Services, a preparation fee not to exceed $22.88 for medical record retrieval and preparation; and
- The actual cost for postage and handling of the medical record.
(iii) Subject to the fee limitations that apply to persons in interest under 45 C.F.R. 164.524 and any guidance on those limitations issued by the U.S. Department of Health and Human Services, a hospital or a health care provider that uses or maintains the requested medical records in an electronic format may charge for an electronic copy of a medical record in an electronic format requested by a person in interest or any other authorized person:
- A preparation fee not to exceed $22.88 for electronic format medical records retrieval and preparation;
- A per-page fee of 75% of the per-page fee charged by a health care provider under subparagraph (i) of this paragraph that may not exceed $80; and
- The actual cost for postage and handling of the electronic format medical records.
