(1) “Health facility”, except as otherwise provided in subsection (2), means:

    (a) A hospital licensed under part 215.

    (b) A psychiatric hospital or psychiatric unit licensed under the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106.

    (c) A nursing home licensed under part 217 or a hospital long-term care unit as defined in section 20106(6).

    (d) A freestanding surgical outpatient facility licensed under part 208.

    (e) A health maintenance organization issued a license or certificate of authority in this state.

    (2) “Health facility” does not include the following:

    (a) An institution conducted by and for the adherents of a church or religious denomination for the purpose of providing facilities for the care and treatment of the sick who depend solely upon spiritual means through prayer for healing.

    (b) A health facility or agency located in a correctional institution.

    (c) A veterans facility operated by the state or federal government.

    (d) A facility owned and operated by the department of community health.

    (3) “Initiate” means the offering of a covered clinical service that has not been offered in compliance with this part or former part 221 on a regular basis at that location within the 12-month period immediately preceding the date the covered clinical service will be offered.

    (4) “Medical equipment” means a single equipment component or a related system of components that is used for clinical purposes.