Section 5-305 - Nonprofit health service plan. - Maryland Statutes

§ 6.5-305. Nonprofit health service plan.
 

(a)  Revocation or suspension of license.- The Secretary of the Department may revoke or suspend a license to operate a hospital in accordance with § 19-327 of the Health - General Article if an acquisition occurs without the approval of the Attorney General. 

(b)  Approval required.- An acquisition of a nonprofit health service plan or a nonprofit health maintenance organization may not occur without the approval of the Administration. 

(c)  Operation for profit.- A nonprofit health service plan or a nonprofit health maintenance organization may not be operated for profit. 

(d)  Violations.- If the Commissioner determines that a nonprofit health service plan or a nonprofit health maintenance organization is in violation of subsection (b) or (c) of this section, the Commissioner may, in addition to any other remedies authorized by law, require the following: 

(1) the divestiture of the acquisition; 

(2) that the entity fully comply with this title; 

(3) that the entity file a plan for conversion to a for-profit entity as required under this title; 

(4) that the certificate of authority of the entity to operate as a nonprofit health service plan or a nonprofit health maintenance organization in this State be revoked or suspended; or 

(5) the payment of a penalty as provided for in § 4-113 (d) (1) of the Insurance Article for each violation of subsection (b) or (c) of this section. 
 

[1998, chs. 123, 124.]