Section 10-423 - Operating reserves - Unconverted facilities. - Maryland Statutes

§ 10-423. Operating reserves - Unconverted facilities.
 

(a)  Amount.- For a facility that has not been the subject of a conversion and that has residents who are not parties to continuing care agreements, the provider shall set aside operating reserves equal to at least 15% of the pro rata proportion of the net operating expenses calculated under subsection (b) of this section. 

(b)  Calculation of pro rata proportion of net operating expenses.- The pro rata proportion of the net operating expenses equals the number of units in the facility for which the Department has issued a certificate of registration divided by the total number of accommodations in the facility multiplied by the net operating expenses for the most recent fiscal year for which a certified financial statement is available. 
 

[An. Code 1957, art. 70B, § 11B(h); 2007, ch. 3, § 2.]