Current as of: 2010
(a) The appropriate regulating entity may not approve an acquisition unless it finds the acquisition is in the public interest.
(b) An acquisition is not in the public interest unless appropriate steps have been taken to:
(1) ensure that the value of public or charitable assets is safeguarded;
(2) ensure that the value of public or charitable assets is spent in a manner that corresponds with the potential risk associated with the acquisition;
(3) ensure that:
(i) the fair value of the public or charitable assets of a nonprofit health service plan or a health maintenance organization will be distributed to the Maryland Health Care Trust established under § 6.5-401 of this title; or
(ii) 1. 40% of the fair value of the public or charitable assets of a nonprofit hospital will be distributed to the Maryland Health Care Trust established under § 6.5-401 of this title; and
2. 60% of the fair value of the public or charitable assets of a nonprofit hospital will be distributed to a public or nonprofit charitable entity or trust that is:
A. dedicated to serving the unmet health care needs of the affected community;
B. dedicated to promoting access to health care in the affected community;
C. dedicated to improving the quality of health care in the affected community; and
D. independent of the transferee;
(4) ensure that no part of the public or charitable assets of the acquisition inure directly or indirectly to an officer, director, or trustee of a nonprofit health entity; and
(5) ensure that no officer, director, or trustee of the nonprofit health entity receives any immediate or future remuneration as the result of an acquisition or proposed acquisition except in the form of compensation paid for continued employment with the acquiring entity.
(c) The regulating entity may determine that a distribution of assets of a nonprofit health entity is not required under this section if the transaction is:
(1) determined not to be an acquisition;
(2) in the ordinary course of business; and
(3) for fair value.
(d) In determining fair value, the appropriate regulating entity may consider all relevant factors, including, as determined by the regulating entity:
(1) the value of the nonprofit health entity or an affiliate or the assets of such an entity that is determined as if the entity had voting stock outstanding and 100% of its stock was freely transferable and available for purchase without restriction;
(2) the value as a going concern;
(3) the market value;
(4) the investment or earnings value;
(5) the net asset value; and
(6) a control premium, if any.
(e) (1) In determining whether an acquisition is in the public interest, the appPrev
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