LAWRENCE J. HOGAN, JR., Governor Ch. 727
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Chapter 727
(House Bill 972)
AN ACT concerning
Continuing Care at Home – Certificate of Need – Exemption
FOR the purpose of providing that the definition of a health care facility, for the purpose of
providing an exemption from the certificate of need requirement, does not include
certain facilities that are for the exclusive use of the provider’s subscribers who have
executed continuing care at home agreements and paid certain entrance fees;
establishing an exception to certain application requirements for certain continuing
care at home providers; and generally relating to continuing care at home and
exemptions to certificate of need.
BY repealing and reenacting, with amendments,
Article – Health – General
Section 19–114(d)(2)(ii)
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Human Services
Section 10–458
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Health – General
19–114.
(d) (2) “Health care facility” does not include:
(ii) For the purpose of providing an exception to the requirement for
a certificate of need under § 19–120 of this subtitle, a facility to provide comprehensive care
constructed by a provider of continuing care, as defined in § 10–401 of the Human Services
Article, if:
1. Except as provided under § 19–123 of this subtitle, the
facility is for the exclusive use of the provider’s subscribers who have executed continuing
care agreements, INCLUDING CONTINUING CARE AT HOME AGREEMENTS , and paid
entrance fees that are at least equal to the lowest entrance fee charged for an independent Ch. 727 2022 LAWS OF MARYLAND
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living unit [or], an assisted living unit, OR A CONTINUING CARE AT HOME AGREEMENT
before entering the continuing care community, regardless of the level of care needed by
the subscribers at the time of admission;
2. The facility is located on the campus of the continuing care
community; and
3. The number of comprehensive care nursing beds in the
community does not exceed:
A. 24 percent of the number of independent living units in a
community having less than 300 independent living units; or
B. 20 percent of the number of independent living units in a
community having 300 or more independent living units;
Article – Human Services
10–458.
(a) A provider may not provide continuing care at home services until the
Department issues a certificate of registration to the provider.
(b) An application for a certificate of registration shall:
(1) be filed in a form satisfactory to the Department; and
(2) include at least the following information:
(i) EXCEPT AS PROVIDED I N SUBSECTION (D) OF THIS SECTION,
verification that the required number of agreements has been executed and the
corresponding deposits collected;
(ii) the form and substance of any proposed advertisements,
advertising campaigns, or other promotional materials for the program that are available
at the time of filing and that have not been filed previously with the Department;
(iii) verification that any other license or certificate required by other
appropriate State units has been issued to the provider; and
(iv) any other information that the Department requires.
(c) The Department shall issue a certificate of registration to a provider if the
Department determines that:
LAWRENCE J. HOGAN, JR., Governor Ch. 727
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(1) the information and documents submitted with the feasibility study
and application for a preliminary certificate of registration are current and accurate or have
been updated to make them accurate;
(2) EXCEPT AS PROVIDED I N SUBSECTION (D) OF THIS SECTION , the
required number of agreements has been executed and the corresponding deposits
collected;
(3) any other license or certificate required by other appropriate State
units has been issued to the provider;
(4) the provider has submitted all proposed advertisements, advertising
campaigns, and other promotional materials for the program;
(5) the form and substance of all advertisements, advertising campaigns,
and other promotional materials submitted are not deceptive, misleading, or likely to
mislead; and
(6) the provider has submitted any other information that the Department
required.
(D) SUBSECTIONS (B)(2)(I) AND (C)(2) OF THIS SECTION DO N OT APPLY TO
A PROVIDER OF CONTIN UING CARE AT HOME SE RVICES THAT:
(1) MEETS ANY RESERVE RE QUIREMENTS ; AND
(2) UNTIL THE PROVIDER H AS ENROLLED THE MINI MUM NUMBER OF
SUBSCRIBERS NEEDED F OR ITS REVENUES TO E QUAL ITS EXPENSES :
(I) HOLDS IN ESCROW THE ENTIRETY OF ALL ENTR ANCE FEES;
OR
(II) MAINTAINS A SURETY B OND OF $1,000,000 OR AN
EQUIVALENT REPLACEME NT SECURITY SUCH AS CASH, IRREVOCABLE LETTERS OF
CREDIT, CERTIFICATES OF DEPO SIT, OR TREASURY BILLS .
[(d)] (E) If a provider intends to advertise before the Department issues a
certificate of registration under subsection (c) of this section, the provider shall submit to
the Department any advertisement, advertising campaign, or other promotional materials
before using it.
[(e)] (F) If a certificate of registration is not issued to a provider within 24
months after the Department approves a feasibility study, or a longer time allowed by the
Department for good cause shown, the provider shall refund all deposits collected and stop
offering continuing care at home services under that application. Ch. 727 2022 LAWS OF MARYLAND
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SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October July 1, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.