§1320b–4 — Title 42 The Public Health and Welfare | U.S. Code

Summary

When the government figures reasonable costs for nonprofit hospitals or critical access hospitals under subchapters XVIII and XIX, some money must not be counted as part of the hospital’s operating costs. These include unrestricted donations, grants, endowments and their income; government grants that by their terms cannot be used as operating money; donor-designated gifts and similar payments that the Secretary decides should be encouraged for needed health care; and proceeds from selling or mortgaging donated real estate or other capital assets when the original gift or grant bars using those proceeds for operations.

Title 42, §1320b–4

The Public Health and Welfare — Source: USLM XML via OLRC

For purposes of determining, under subchapters XVIII and XIX of this chapter, the reasonable costs of services provided by nonprofit hospitals or critical access hospitals, the following items shall not be deducted from the operating costs of such hospitals or critical access hospitals:

(1)A grant, gift, or endowment, or income therefrom, which is to or for such a hospital and which has not been designated by the donor for paying any specific operating costs.

(2)A grant or similar payment which is to such a hospital, which was made by a governmental entity, and which is not available under the terms of the grant or payment for use as operating funds.

(3)Those types of donor designated grants and gifts (including grants and similar payments which are made by a governmental entity), and income therefrom, which the Secretary determines, in the best interests of needed health care, should be encouraged.

(4)The proceeds from the sale or mortgage of any real estate or other capital asset of such a hospital, which real estate or asset the hospital acquired through gift or grant, if such proceeds are not available for use as operating funds under the terms of the gift or grant.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1997—Pub. L. 105–33 substituted “critical access” for “rural primary care” in two places in introductory provisions. 1989—Pub. L. 101–239 substituted “hospitals or rural primary care hospitals” for “hospitals” in two places in introductory provisions. 1982—Par. (4). Pub. L. 97–248 substituted “sale” for “scale”. 1981—Pub. L. 97–35 substituted “subchapters XVIII and” for “subchapters V, XVIII, and” in provision preceding par. (1).

Statutory Notes and Related Subsidiaries

Effective Date

of 1997 AmendmentAmendment by Pub. L. 105–33 applicable to services furnished on or after Oct. 1, 1997, see section 4201(d) of Pub. L. 105–33, set out as a note under section 1395f of this title.

Effective Date

of 1982 AmendmentAmendment by Pub. L. 97–248 effective as if originally included as part of this section as this section was amended by the Omnibus Budget Reconciliation Act of 1981, Pub. L. 97–35, see section 137(d)(2) of Pub. L. 97–248, set out as a note under section 1396a of this title.

Effective Date

of 1981 Amendment, Savings, and Transitional ProvisionsFor

Effective Date

, savings, and transitional provisions relating to amendment by Pub. L. 97–35, see section 2194 of Pub. L. 97–35, set out as a note under section 701 of this title.

Effective Date

Pub. L. 96–499, title IX, § 901(b), Dec. 5, 1980, 94 Stat. 2611, provided that: “The amendment made by subsection (a) [enacting this section] shall apply to grants, gifts, and endowments, and income therefrom, made or established after the date of the enactment of this Act [Dec. 5, 1980].”

§1320b–4 Nonprofit hospital or critical access hospital philanthropy

Summary

Title 42, §1320b–4

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Effective Date

Effective Date

Citations & Metadata