42 U.S.C. § 300e–12: Limitation on source of…

Summary

Money from this chapter — except money from this subchapter and except as allowed under sections 254b and 254b — must not be used to help create or grow health maintenance organizations (HMOs) or other groups that give health care to a specific population for a set payment. This rule bars using grants, contracts, loans, or loan-guarantee payments for things like feasibility studies or surveys, planning, initial development or expansion, or to cover startup operations or the purchase or construction of outpatient health care facilities.

Title 42, §300e–12

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

No funds appropriated under any provision of this chapter (except as provided in section 254b and 254b of this title) other than this subchapter may be used—

(1)for grants or contracts for surveys or other activities to determine the feasibility of developing or expanding health maintenance organizations or other entities which provide, directly or indirectly, health services to a defined population on a prepaid basis;

(2)for grants or contracts, or for payments under loan guarantees, for planning projects for the establishment or expansion of such organizations or entities;

(3)for grants or contracts, or for payments under loan guarantees, for projects for the initial development or expansion of such organizations or entities; or

(4)for loans, or for payments under loan guarantees, to assist in meeting the costs of the initial operation after establishment or expansion of such organizations or entities or in meeting the costs of such organizations in acquiring or constructing ambulatory health care facilities.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The reference to section 254b of this title the first place appearing in text was in the original a reference to section 329, meaning section 329 of act July 1, 1944, which was omitted in the general amendment of subpart I (§ 254b et seq.) of part D of this subchapter by Pub. L. 104–299, § 2, Oct. 11, 1996, 110 Stat. 3626.

Amendments

2003—Pub. L. 108–163 substituted “254b and 254b” for “254b, 254c, and 254b(h)” in introductory provisions. 2002—Pub. L. 107–251 substituted “254b(h)” for “256” in introductory provisions. 1978—Pub. L. 95–626 inserted “(except as provided in section 254b, 254c, and 256 of this title)” after “under any provision of this chapter” in provisions preceding par. (1). Par. (4). Pub. L. 95–559 inserted “or in meeting the costs of such organizations in acquiring or constructing ambulatory health care facilities” after “or entities”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2003 AmendmentAmendment by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

§300e–12 Limitation on Source of Funding for Health Maintenance Organizations