§ 27-41-5. Powers of health maintenance organizations.
(a) The powers of a health maintenance organization include, but are not limited to, the
following:
(1) The purchase, lease, construction, renovation, operation, or maintenance of hospitals,
medical facilities, or both, and their ancillary equipment, and any property that
may reasonably be required for its principal office or for any other purposes that
may be necessary in the transaction of the business of the health maintenance organization
as defined in § 27-41-2(20);
(2) The making of loans to a medical group under contract with it in furtherance of its
program or the making of loans to a corporation or corporations under its control
for the purpose of acquiring or constructing medical facilities and hospitals or in
furtherance of a program providing healthcare services to enrollees;
(3) The furnishing of healthcare services through providers that are under contract with
or employed by the health maintenance organization;
(4) The contracting with any person for the performance on its behalf of certain functions
such as marketing, enrollment, and administration;
(5) The contracting with an insurance company or a hospital or medical service corporation
licensed in this state for the provision of insurance, indemnity, or reimbursement
against the cost of healthcare services provided by the health maintenance organization;
(6) The offering, in addition to basic healthcare services, of:
(i) Additional healthcare services;
(ii) Indemnity benefits covering out-of-area or emergency services; and
(iii) Indemnity benefits, in addition to those relating to out-of-area and emergency services,
provided through insurance companies or hospital or medical service corporations.
(b) A health maintenance organization shall file notice, with adequate supporting information,
with the director of business regulation prior to the exercise of any power granted
in subsection (a)(1), (a)(2), or (a)(4) of this section. The director of business
regulation shall disapprove any exercise of power only if in the director's opinion
it would substantially and adversely affect the financial soundness of the health
maintenance organization and endanger its ability to meet its obligations. The director
of business regulation shall approve or disapprove any exercise of power within a
reasonable time, subject to certification of approval from the director of health
and to the requirements of chapter 15 of title 23, the Health Care Certificate of Need Act of Rhode Island.
(c) Investment in real estate may be made only for the purposes set forth in subsection
(a)(1) of this section, except that the health maintenance organization shall not
be required to fully comply with the uses described in subsection (a)(1) of this section
until December 31 of the year following the year of purchase. Upon submission to the
director of evidence demonstrating that the health maintenance organization is making
satisfactory progress toward compliance with this subsection, the director may grant
an extension of no more than one year beyond the time provided.
(d) The director of business regulation may promulgate rules and regulations exempting
from the filing requirement of subsection (b) of this section those activities having
a de minimis effect.