Mid-Atlantic Health Law TOPICS

1. In June, the Health Services Cost Review Commission (HSCRC) approved new hospital rates for fiscal year 2022. Maryland hospitals’ revenues will be permitted to rise 2.34% (inclusive of an extraordinary adjustment of 0.20% to account for rising labor and malpractice costs due to COVID-19). Hospitals that administer high-cost oncology and infusion drugs will receive an additional 0.23%. The HSCRC will temporarily suspend the productivity adjustment for nonglobal budget hospitals, such as psychiatric hospitals and Mount Washington Pediatric Hospital, as a result of low volumes caused by the COVID-19 pandemic.    

2. The HSCRC staff also made final recommendations on the Integrated Efficiency Policy. Maryland hospitals that score in the bottom of the HSCRC’s efficiency matrix will have their global budget revenue reduced. As implemented currently, approximately $17.8 million in inflation will be withheld across 10 hospitals in the state. On the other end of the spectrum, the currently five hospitals performing well on the efficiency matrix and meeting other technical requirements will be eligible to apply for a global budget revenue enhancement. 

3. The Maryland Department of Health (MDH) is proposing amendments to the regulations governing physician discipline actions. The proposed amendments are designed to bring the regulations in line with recent legislation that prohibits physicians from engaging in certain conduct. For example, the proposed amendments will explicitly state that a physician who fails to complete a required criminal history records check in accordance with the Health Occupations statute or fails to comply with the requirements of the Prescription Drug Monitoring Program may be subject to disciplinary action. 

4. The MDH Behavioral Health Administration has launched a request for proposals for Residential Eating Disorder Programs, to determine if MDH should create a new licensure category for these types of treatment facilities. Applications for the pilot program will be accepted and approved on a rolling basis until March 1, 2022, with the project set to expire in 2025. At the project’s conclusion, MDH will review each participant’s efficacy and financial stability. Participants will not receive funding as part of the pilot but some current regulatory requirements will be waived.

Alexandria K. Montanio
410-576-4278 • amontanio@gfrlaw.com