1. A. In this chapter, the following terms have the meanings indicated.

2. B. Terms Defined.

   1. (1) “Accounting and Reporting System for Hospitals” means the system originally adopted by the Commission in 1973 and as amended which is in effect at the time the System is referred to in these regulations. The System is also referred to as “the Rate Review System”, or “the Accounting and Budget Manual for Fiscal and Operating Management”.
   2. (2) “Beneficial owner” means that person who ultimately benefits or suffers losses from the operation of the firm or has a vested interest in it, and includes, but is not limited to, limited partners, beneficiaries of voting or other trusts, and limited term and remaindermen beneficiaries or owners.
   3. (3) “Firm” means a partnership, corporation or other business professional, or academic entity, and, in the case of sole proprietors or practitioners, the trustee himself.
   4. (4) “Notify in writing” or “written notification” means personal delivery to the person to be notified, or mailing through the United States Postal Services, by registered or certified mail, return receipt requested to the person to be notified.

   5. (5) “Officer” means:

      1. (a) An individual who is elected to office pursuant to a resolution of the governing board of the hospital or related institution, to fill a position defined in the bylaws of the hospital or related institution; or
      2. (b) An individual who, although not specifically designated as an “officer” administers the policies of the hospital or related institution, and has the authority and performs the duties in the management of the property and affairs of the hospital or related institution as may be provided in the bylaws.
   6. (6) “Partner” means any partner who has voting power or management or policy responsibilities, regardless of restrictions thereon, but excludes limited partners or other partners who have no vote in or management or policy responsibilities as to the partnership.
   7. (7) “Section 556 hospitals” or “hospitals” means all hospitals as defined in Article 43, §556, Annotated Code of Maryland.
   8. (8) “Section 556 nursing homes” or “nursing homes” or “Section 556 care homes” or “care homes” means all nursing homes or care homes as defined in Article 43, §556, Annotated Code of Maryland.
   9. (9) “Section 556 related institutions” or “related institutions” means all related institutions as defined in Article 43, §556, Annotated Code of Maryland.
   10. (10) “Trustee" or "director” means any person serving on a governing board or committee of a nonprofit hospital or related institution who is empowered to vote on matters concerning the hospital's or related institution's governance or other matters generally concerning its policies.
   11. (11) “Willfully” means acting in a purposeful and not a negligent or accidental manner, but need not encompass a criminal intent not to observe or to breach any statute or rule of law.

Authority: Health-General Article, §§19-207, 19-215, and 19-303,Annotated Code of Maryland

Effective date: April 24, 1973

Regulation .01B, C, E, F, J, and K adopted effective September 19, 1974 (1:1 Md. R. 17)

Regulation .03 amended effective July 28, 1978 (5:15 Md. R. 1189)

Regulation .03A, C amended effective May 4, 1979 (6:9 Md. R. 728)

Regulation .03D amended effective October 29, 1975 (2:24 Md. R. 1481); May 11, 1977 (4:10 Md. R. 767)

Regulation .03D, E amended effective April 7, 1978 (5:7 Md. R. 522)

Regulation .03H amended effective August 18, 1976 (3:17 Md. R. 915); August 31, 1977 (4:18 Md. R. 1398); July 28, 1978 (5:15 Md. R. 1189); December 29, 1978 (5:26 Md. R. 1922); May 4, 1979 (6:9 Md. R. 728)

Regulation .03I adopted effective August 18, 1976 (3:17 Md. R. 915)

Regulation .03J adopted effective July 28, 1978 (5:15 Md. R. 1189); December 29, 1978 (5:26 Md. R. 1922); May 4, 1979 (6:9 Md. R. 728)

Regulations .04 and .05 effective April 29, 1973

Regulation .05G amended as an emergency provision effective December 23, 1976 (4:2 Md. R. 73)

Regulation .06 adopted effective September 19, 1974 (1:1 Md. R. 17)

Regulation .07 adopted effective April 7, 1978 (5:7 Md. R. 522)

Regulations .01—.03 amended effective October 3, 1980 (7:20 Md. R. 1879)

Regulation .01A amended effective December 14, 1987 (14:25 Md. R. 2660)

Regulation .02 amended effective December 14, 1987 (14:25 Md. R. 2660); May 29, 1989 (16:10 Md. R. 1109); April 5, 1999 (26:7 Md. R. 543)

Regulation .02A amended effective January 8, 1990 (16:26 Md. R. 2793); February 4, 1991 (18:2 Md. R. 149); January 6, 1992 (18:26 Md. R. 2830); August 30, 1993 (20:17 Md. R. 1346); January 2, 1995 (21:26 Md. R. 2188); May 6, 1996 (23:7 Md. R. 553); April 7, 1997 (24:7 Md. R. 553); May 4, 1998 (25:9 Md. R. 680); April 5, 1999 (26:7 Md. R. 543); March 6, 2000 (27:4 Md. R. 454); July 9, 2001 (28:13 Md. R. 1216); September 30, 2002 (29:19 Md. R. 1524); March 29, 2004 (31:6 Md. R. 509); August 1, 2005 (32:15 Md. R. 1321); April 10, 2006 (33:7 Md. R. 673); June 4, 2007 (34:11 Md. R. 971); May 18, 2009 (36:10 Md. R. 717); April 5, 2010 (37:7 Md. R. 571); June 27, 2011 (38:13 Md. R. 756); July 9, 2012 (39:13 Md. R. 785); April 14, 2014 (41:7 Md. R. 422); December 21, 2015 (42:25 Md. R. 1543); August 13, 2018 (45:16 Md. R. 775); March 9, 2020 (47:5 Md. R. 311); February 8, 2021 (48:3 Md. R. 94); December 11, 2023 (50:24 Md. R. 1042); November 25, 2024 (51:23 Md. R. 1036); April 14, 2025 (52:7 Md. R. 323)

Regulation .03 amended effective July 1, 1985 (12:13 Md. R. 1279); December 10, 2001 (28:24 Md. R. 2128); October 5, 2009 (36:20 Md. R. 1529)

Regulation .03 amended as an emergency provision effective January 1, 2014 (41:2 Md. R. 89); amended permanently effective April 14, 2014 (41:7 Md. R. 422)

Regulation .03 amended effective August 4, 2014 (41:15 Md. R. 890)

Regulation .03D, E amended effective November 30, 2009 (36:24 Md. R. 1858)

Regulation .03F repealed effective January 1, 1983 (9:16 Md. R. 1605)

Regulation .03H amended effective January 1, 1984 (10:15 Md. R. 1351); October 10, 1994 (21:20 Md. R. 1732); February 12, 2007 (34:3 Md. R. 299)

Regulation .03H, L amended effective August 3, 1981 (8:15 Md. R. 1308); November 19, 1984 (11:23 Md. R. 1992); July 1, 1985 (12:13 Md. R. 1279); March 10, 1986 (13:5 Md. R. 545)

Regulation .03H, L amended as an emergency provision effective May 25, 1986 (13:12 Md. R. 1372); emergency status expired September 16, 1986

Regulation .03H, L amended effective November 3, 1986 (13:22 Md. R. 2399); December 15, 1986 (13:25 Md. R. 2660); December 28, 1987 (14:26 Md. R. 2747); September 4, 1989 (16:17 Md. R. 1886); April 27, 1992 (19:8 Md. R. 805)

Regulation .03I repealed effective February 13, 2006 (33:3 Md. R. 241)

Regulation .03K amended as an emergency provision effective April 1, 2003 (30:8 Md. R. 538); amended permanently effective July 7, 2003 (30:13 Md. R. 854)

Regulation .03K amended effective June 6, 2005 (32:11 Md. R. 983)

Regulation .03L amended effective February 13, 2006 (33:3 Md. R. 241)

Regulation .03L-1, L-2 adopted effective March 8, 1999 (26:5 Md. R. 391)

Regulation .03L-1 amended effective November 15, 2010 (37:23 Md. R. 1610)

Regulation .03L-3 adopted effective June 9, 2003 (30:11 Md. R. 735)

Regulation .03L-5 adopted effective January 13, 2011 (38:1 Md. R. 11)

Regulation .03M amended effective November 11, 2024 (51:22 Md. R. 963)

Regulation .03N amended as an emergency provision effective September 2, 1991 (18:19 Md. R. 2095); emergency status expired February 3, 1992

Regulation .03N amended effective January 6, 1992 (18:26 Md. R. 2830); March 8, 1999 (26:5 Md. R. 391); March 4, 2013 (40:4 Md. R. 346)

Regulation .06D amended effective March 4, 2013 (40:4 Md. R. 346)

Regulation .06I adopted effective June 30, 1986 (13:13 Md. R. 1492)

Regulation .06I amended effective August 13, 2007 (34:16 Md. R. 1432)

Regulation .08 adopted effective January 6, 1992 (18:26 Md. R. 2830)

Regulation .08A, B amended effective September 14, 2015 (42:18 Md. R. 1174)