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Terms Used In Maryland Code, EDUCATION 13-405

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • state: means :

    (1) a state, possession, territory, or commonwealth of the United States; or

    (2) the District of Columbia. See
(a) (1) This section shall be effective only if the transfer or lease authorized by this subtitle occurs.

(2) This section shall be void if the Medical System Corporation no longer operates Montebello.

(b) The Medical System Corporation shall cause annual audited financial statements for Montebello to be prepared and filed with the Governor and the Joint Audit and Evaluation Committee as soon as practicable following the close of each fiscal year.

(c) The Medical System Corporation shall submit with the annual audited financial statements for Montebello a report on the amount of uncompensated care provided at Montebello for the fiscal year.

(d) In recognition of the provision of uncompensated care by Montebello and to assist with the capital financial needs of Montebello specified as part of the transfer under § 13-402 of this subtitle, the State shall pay the Medical System Corporation:

(1) In fiscal year 1993, $6,129,942;

(2) In fiscal year 1994, $5,500,000;

(3) In fiscal year 1995, $5,000,000;

(4) In fiscal year 1996, $5,000,000;

(5) In fiscal year 1997, $5,000,000; and

(6) In each fiscal year thereafter, an amount jointly agreed upon by the Maryland Department of Health and the Medical System Corporation and calculated to enable the Medical System Corporation to continue to provide uncompensated care by Montebello and to assist with the capital financial needs of Montebello specified as part of the transfer under § 13-402 of this subtitle.

(e) If the Health Services Cost Review Commission sets rates for services rendered at Montebello, then the Governor shall include in the budget bill each year an appropriation to the Medical System Corporation equal to the difference between the pension costs for Montebello University employees and employees of the Medical System Corporation working at Montebello and participating in the State Retirement and Pension Systems and the pension costs permitted by the Health Services Cost Review Commission in the rates for Montebello.

(f) The Health Services Cost Review Commission may not set rates for the services rendered at Montebello until:

(1) State law authorizes the State Medical Assistance Program to reimburse the Medical System Corporation at commission rates for services rendered at Montebello; and

(2) The United States Department of Health and Human Services agrees to accept commission rates as a method of providing federal financial participation in the State Medical Assistance Program.