Section 5-101 - Definitions.

§ 6.5-101. Definitions.
 

(a)  In general.- In this title the following words have the meanings indicated. 

(b)  Acquisition.- "Acquisition" means: 

(1) a sale, lease, transfer, merger, or joint venture that results in the disposal of the assets of a nonprofit health entity to a for-profit corporation or entity or to a mutual benefit corporation or entity when a substantial or significant portion of the assets of the nonprofit health entity are involved or will be involved in the agreement or transaction; 

(2) a transfer of ownership, control, responsibility, or governance of a substantial or significant portion of the assets, operations, or business of the nonprofit health entity to any for-profit corporation or entity or to any mutual benefit corporation or entity; 

(3) a public offering of stock; or 

(4) a conversion to a for-profit entity. 

(c)  Administration.- "Administration" means the Maryland Insurance Administration. 

(d)  Department.- "Department" means the Department of Health and Mental Hygiene. 

(e)  Health maintenance organization.- "Health maintenance organization" has the meaning stated in § 19-701 of the Health - General Article. 

(f)  Hospital.- "Hospital" has the meaning stated in § 19-301 of the Health - General Article. 

(g)  Nonprofit health entity.- "Nonprofit health entity" means: 

(1) a nonprofit hospital; 

(2) a nonprofit health service plan; or 

(3) a nonprofit health maintenance organization. 

(h)  Nonprofit health service plan.- "Nonprofit health service plan" means a corporation without capital stock with a certificate of authority from the Insurance Commissioner to operate as a nonprofit health service plan or a nonprofit dental plan. 

(i)  Public assets.- "Public assets" include: 

(1) assets held for the benefit of the public or the community; 

(2) assets in which the public has an ownership interest; and 

(3) assets owned by a governmental entity. 

(j)  Regulating entity.- "Regulating entity" means: 

(1) for an acquisition of a nonprofit hospital, the Attorney General in consultation with the Department; 

(2) for an acquisition of a nonprofit health service plan, the Administration; and 

(3) for an acquisition of a nonprofit health maintenance organization, the Administration. 

(k)  Transferee.- "Transferee" means the person in an acquisition that receives the ownership or control of the nonprofit health entity that is the subject of the acquisition. 

(l)  Transferor.- "Transferor" means the nonprofit health entity that is the subject of the acquisition, or the corporation that owns the nonprofit health entity that is the subject of the acquisition. 
 

[1998, chs. 123, 124; 2002, ch. 154.]