Laws: Cases and Codes : U.S. Code : Title 42 : Section 254b


   
U.S. Code as of: 01/19/04
Section 254b. Health centers

    (a) "Health center" defined
      (1) In general
        For purposes of this section, the term "health center" means an
      entity that serves a population that is medically underserved, or
      a special medically underserved population comprised of migratory
      and seasonal agricultural workers, the homeless, and residents of
      public housing, by providing, either through the staff and
      supporting resources of the center or through contracts or
      cooperative arrangements - 
          (A) required primary health services (as defined in
        subsection (b)(1) of this section); and
          (B) as may be appropriate for particular centers, additional
        health services (as defined in subsection (b)(2) of this
        section) necessary for the adequate support of the primary
        health services required under subparagraph (A);

      for all residents of the area served by the center (hereafter
      referred to in this section as the "catchment area").
      (2) Limitation
        The requirement in paragraph (1) to provide services for all
      residents within a catchment area shall not apply in the case of
      a health center receiving a grant only under subsection (g), (h),
      or (i) of this section.
    (b) Definitions
      For purposes of this section:
      (1) Required primary health services
        (A) In general
          The term "required primary health services" means - 
            (i) basic health services which, for purposes of this
          section, shall consist of - 
              (I) health services related to family medicine, internal
            medicine, pediatrics, obstetrics, or gynecology that are
            furnished by physicians and where appropriate, physician
            assistants, nurse practitioners, and nurse midwives;
              (II) diagnostic laboratory and radiologic services;
              (III) preventive health services, including - 
                (aa) prenatal and perinatal services;
                (bb) appropriate cancer screening;
                (cc) well-child services;
                (dd) immunizations against vaccine-preventable
              diseases;
                (ee) screenings for elevated blood lead levels,
              communicable diseases, and cholesterol;
                (ff) pediatric eye, ear, and dental screenings to
              determine the need for vision and hearing correction and
              dental care;
                (gg) voluntary family planning services; and
                (hh) preventive dental services;

              (IV) emergency medical services; and
              (V) pharmaceutical services as may be appropriate for
            particular centers;

            (ii) referrals to providers of medical services (including
          specialty referral when medically indicated) and other
          health-related services (including substance abuse and mental
          health services);
            (iii) patient case management services (including
          counseling, referral, and follow-up services) and other
          services designed to assist health center patients in
          establishing eligibility for and gaining access to Federal,
          State, and local programs that provide or financially support
          the provision of medical, social, housing, educational, or
          other related services;
            (iv) services that enable individuals to use the services
          of the health center (including outreach and transportation
          services and, if a substantial number of the individuals in
          the population served by a center are of limited
          English-speaking ability, the services of appropriate
          personnel fluent in the language spoken by a predominant
          number of such individuals); and
            (v) education of patients and the general population served
          by the health center regarding the availability and proper
          use of health services.
        (B) Exception
          With respect to a health center that receives a grant only
        under subsection (g) of this section, the Secretary, upon a
        showing of good cause, shall - 
            (i) waive the requirement that the center provide all
          required primary health services under this paragraph; and
            (ii) approve, as appropriate, the provision of certain
          required primary health services only during certain periods
          of the year.
      (2) Additional health services
        The term "additional health services" means services that are
      not included as required primary health services and that are
      appropriate to meet the health needs of the population served by
      the health center involved. Such term may include - 
          (A) behavioral and mental health and substance abuse
        services;
          (B) recuperative care services;
          (C) environmental health services, including - 
            (i) the detection and alleviation of unhealthful conditions
          associated with - 
              (I) water supply;
              (II) chemical and pesticide exposures;
              (III) air quality; or
              (IV) exposure to lead;

            (ii) sewage treatment;
            (iii) solid waste disposal;
            (iv) rodent and parasitic infestation;
            (v) field sanitation;
            (vi) housing; and
            (vii) other environmental factors related to health; and

          (D) in the case of health centers receiving grants under
        subsection (g) of this section, special occupation-related
        health services for migratory and seasonal agricultural
        workers, including - 
            (i) screening for and control of infectious diseases,
          including parasitic diseases; and
            (ii) injury prevention programs, including prevention of
          exposure to unsafe levels of agricultural chemicals including
          pesticides.
      (3) Medically underserved populations
        (A) In general
          The term "medically underserved population" means the
        population of an urban or rural area designated by the
        Secretary as an area with a shortage of personal health
        services or a population group designated by the Secretary as
        having a shortage of such services.
        (B) Criteria
          In carrying out subparagraph (A), the Secretary shall
        prescribe criteria for determining the specific shortages of
        personal health services of an area or population group. Such
        criteria shall - 
            (i) take into account comments received by the Secretary
          from the chief executive officer of a State and local
          officials in a State; and
            (ii) include factors indicative of the health status of a
          population group or residents of an area, the ability of the
          residents of an area or of a population group to pay for
          health services and their accessibility to them, and the
          availability of health professionals to residents of an area
          or to a population group.
        (C) Limitation
          The Secretary may not designate a medically underserved
        population in a State or terminate the designation of such a
        population unless, prior to such designation or termination,
        the Secretary provides reasonable notice and opportunity for
        comment and consults with - 
            (i) the chief executive officer of such State;
            (ii) local officials in such State; and
            (iii) the organization, if any, which represents a majority
          of health centers in such State.
        (D) Permissible designation
          The Secretary may designate a medically underserved
        population that does not meet the criteria established under
        subparagraph (B) if the chief executive officer of the State in
        which such population is located and local officials of such
        State recommend the designation of such population based on
        unusual local conditions which are a barrier to access to or
        the availability of personal health services.
    (c) Planning grants
      (1) In general
        (A) Centers
          The Secretary may make grants to public and nonprofit private
        entities for projects to plan and develop health centers which
        will serve medically underserved populations. A project for
        which a grant may be made under this subsection may include the
        cost of the acquisition and lease of buildings and equipment
        (including the costs of amortizing the principal of, and paying
        the interest on, loans) and shall include - 
            (i) an assessment of the need that the population proposed
          to be served by the health center for which the project is
          undertaken has for required primary health services and
          additional health services;
            (ii) the design of a health center program for such
          population based on such assessment;
            (iii) efforts to secure, within the proposed catchment area
          of such center, financial and professional assistance and
          support for the project;
            (iv) initiation and encouragement of continuing community
          involvement in the development and operation of the project;
          and
            (v) proposed linkages between the center and other
          appropriate provider entities, such as health departments,
          local hospitals, and rural health clinics, to provide better
          coordinated, higher quality, and more cost-effective health
          care services.
        (B) Managed care networks and plans
          The Secretary may make grants to health centers that receive
        assistance under this section to enable the centers to plan and
        develop a managed care network or plan. Such a grant may only
        be made for such a center if - 
            (i) the center has received grants under subsection
          (e)(1)(A) of this section for at least 2 consecutive years
          preceding the year of the grant under this subparagraph or
          has otherwise demonstrated, as required by the Secretary,
          that such center has been providing primary care services for
          at least the 2 consecutive years immediately preceding such
          year; and
            (ii) the center provides assurances satisfactory to the
          Secretary that the provision of such services on a prepaid
          basis, or under another managed care arrangement, will not
          result in the diminution of the level or quality of health
          services provided to the medically underserved population
          served prior to the grant under this subparagraph.
        (C) Practice management networks
          The Secretary may make grants to health centers that receive
        assistance under this section to enable the centers to plan and
        develop practice management networks that will enable the
        centers to - 
            (i) reduce costs associated with the provision of health
          care services;
            (ii) improve access to, and availability of, health care
          services provided to individuals served by the centers;
            (iii) enhance the quality and coordination of health care
          services; or
            (iv) improve the health status of communities.
        (D) Use of funds
          The activities for which a grant may be made under
        subparagraph (B) or (C) may include the purchase or lease of
        equipment, which may include data and information systems
        (including paying for the costs of amortizing the principal of,
        and paying the interest on, loans for equipment), the provision
        of training and technical assistance related to the provision
        of health care services on a prepaid basis or under another
        managed care arrangement, and other activities that promote the
        development of practice management or managed care networks and
        plans.
      (2) Limitation
        Not more than two grants may be made under this subsection for
      the same project, except that upon a showing of good cause, the
      Secretary may make additional grant awards.
    (d) Loan guarantee program
      (1) Establishment
        (A) In general
          The Secretary shall establish a program under which the
        Secretary may, in accordance with this subsection and to the
        extent that appropriations are provided in advance for such
        program, guarantee up to 90 percent of the principal and
        interest on loans made by non-Federal lenders to health
        centers, funded under this section, for the costs of developing
        and operating managed care networks or plans described in
        subsection (c)(1)(B) of this section, or practice management
        networks described in subsection (c)(1)(C) of this section.
        (B) Use of funds
          Loan funds guaranteed under this subsection may be used - 
            (i) to establish reserves for the furnishing of services on
          a pre-paid basis;
            (ii) for costs incurred by the center or centers, otherwise
          permitted under this section, as the Secretary determines are
          necessary to enable a center or centers to develop, operate,
          and own the network or plan; or
            (iii) to refinance an existing loan (as of the date of
          refinancing) to the center or centers, if the Secretary
          determines - 
              (I) that such refinancing will be beneficial to the
            health center and the Federal Government; or
              (II) that the center (or centers) can demonstrate an
            ability to repay the refinanced loan equal to or greater
            than the ability of the center (or centers) to repay the
            original loan on the date the original loan was made.
        (C) Publication of guidance
          Prior to considering an application submitted under this
        subsection, the Secretary shall publish guidelines to provide
        guidance on the implementation of this section. The Secretary
        shall make such guidelines available to the universe of parties
        affected under this subsection, distribute such guidelines to
        such parties upon the request of such parties, and provide a
        copy of such guidelines to the appropriate committees of
        Congress.
        (D) Provision directly to networks or plans
          At the request of health centers receiving assistance under
        this section, loan guarantees provided under this paragraph may
        be made directly to networks or plans that are at least
        majority controlled and, as applicable, at least majority owned
        by those health centers.
        (E) Federal credit reform
          The requirements of the Federal Credit Reform Act of 1990 (2
        U.S.C. 661 et seq.) shall apply with respect to loans
        refinanced under subparagraph (B)(iii).
      (2) Protection of financial interests
        (A) In general
          The Secretary may not approve a loan guarantee for a project
        under this subsection unless the Secretary determines that - 
            (i) the terms, conditions, security (if any), and schedule
          and amount of repayments with respect to the loan are
          sufficient to protect the financial interests of the United
          States and are otherwise reasonable, including a
          determination that the rate of interest does not exceed such
          percent per annum on the principal obligation outstanding as
          the Secretary determines to be reasonable, taking into
          account the range of interest rates prevailing in the private
          market for similar loans and the risks assumed by the United
          States, except that the Secretary may not require as security
          any center asset that is, or may be, needed by the center or
          centers involved to provide health services;
            (ii) the loan would not be available on reasonable terms
          and conditions without the guarantee under this subsection;
          and
            (iii) amounts appropriated for the program under this
          subsection are sufficient to provide loan guarantees under
          this subsection.
        (B) Recovery of payments
          (i) In general
            The United States shall be entitled to recover from the
          applicant for a loan guarantee under this subsection the
          amount of any payment made pursuant to such guarantee, unless
          the Secretary for good cause waives such right of recovery
          (subject to appropriations remaining available to permit such
          a waiver) and, upon making any such payment, the United
          States shall be subrogated to all of the rights of the
          recipient of the payments with respect to which the guarantee
          was made. Amounts recovered under this clause shall be
          credited as reimbursements to the financing account of the
          program.
          (ii) Modification of terms and conditions
            To the extent permitted by clause (iii) and subject to the
          requirements of section 504(e) of the Credit Reform Act of
          1990 (2 U.S.C. 661c(e)), any terms and conditions applicable
          to a loan guarantee under this subsection (including terms
          and conditions imposed under clause (iv)) may be modified or
          waived by the Secretary to the extent the Secretary
          determines it to be consistent with the financial interest of
          the United States.
          (iii) Incontestability
            Any loan guarantee made by the Secretary under this
          subsection shall be incontestable - 
              (I) in the hands of an applicant on whose behalf such
            guarantee is made unless the applicant engaged in fraud or
            misrepresentation in securing such guarantee; and
              (II) as to any person (or successor in interest) who
            makes or contracts to make a loan to such applicant in
            reliance thereon unless such person (or successor in
            interest) engaged in fraud or misrepresentation in making
            or contracting to make such loan.
          (iv) Further terms and conditions
            Guarantees of loans under this subsection shall be subject
          to such further terms and conditions as the Secretary
          determines to be necessary to assure that the purposes of
          this section will be achieved.
      (3) Loan origination fees
        (A) In general
          The Secretary shall collect a loan origination fee with
        respect to loans to be guaranteed under this subsection, except
        as provided in subparagraph (C).
        (B) Amount
          The amount of a loan origination fee collected by the
        Secretary under subparagraph (A) shall be equal to the
        estimated long term cost of the loan guarantees involved to the
        Federal Government (excluding administrative costs), calculated
        on a net present value basis, after taking into account any
        appropriations that may be made for the purpose of offsetting
        such costs, and in accordance with the criteria used to award
        loan guarantees under this subsection.
        (C) Waiver
          The Secretary may waive the loan origination fee for a health
        center applicant who demonstrates to the Secretary that the
        applicant will be unable to meet the conditions of the loan if
        the applicant incurs the additional cost of the fee.
      (4) Defaults
        (A) In general
          Subject to the requirements of the Credit Reform Act of 1990
        (!1) (2 U.S.C. 661 et seq.), the Secretary may take such action
        as may be necessary to prevent a default on a loan guaranteed
        under this subsection, including the waiver of regulatory
        conditions, deferral of loan payments, renegotiation of loans,
        and the expenditure of funds for technical and consultative
        assistance, for the temporary payment of the interest and
        principal on such a loan, and for other purposes. Any such
        expenditure made under the preceding sentence on behalf of a
        health center or centers shall be made under such terms and
        conditions as the Secretary shall prescribe, including the
        implementation of such organizational, operational, and
        financial reforms as the Secretary determines are appropriate
        and the disclosure of such financial or other information as
        the Secretary may require to determine the extent of the
        implementation of such reforms.

        (B) Foreclosure
          The Secretary may take such action, consistent with State law
        respecting foreclosure procedures and, with respect to reserves
        required for furnishing services on a prepaid basis, subject to
        the consent of the affected States, as the Secretary determines
        appropriate to protect the interest of the United States in the
        event of a default on a loan guaranteed under this subsection,
        except that the Secretary may only foreclose on assets offered
        as security (if any) in accordance with paragraph (2)(A)(i).
      (5) Limitation
        Not more than one loan guarantee may be made under this
      subsection for the same network or plan, except that upon a
      showing of good cause the Secretary may make additional loan
      guarantees.
      (6) Authorization of appropriations
        There are authorized to be appropriated to carry out this
      subsection such sums as may be necessary.
    (e) Operating grants
      (1) Authority
        (A) In general
          The Secretary may make grants for the costs of the operation
        of public and nonprofit private health centers that provide
        health services to medically underserved populations.
        (B) Entities that fail to meet certain requirements
          The Secretary may make grants, for a period of not to exceed
        2 years, for the costs of the operation of public and nonprofit
        private entities which provide health services to medically
        underserved populations but with respect to which the Secretary
        is unable to make each of the determinations required by
        subsection (k)(3) of this section.
        (C) Operation of networks and plans
          The Secretary may make grants to health centers that receive
        assistance under this section, or at the request of the health
        centers, directly to a network or plan (as described in
        subparagraphs (B) and (C) of subsection (c)(1) of this section)
        that is at least majority controlled and, as applicable, at
        least majority owned by such health centers receiving
        assistance under this section, for the costs associated with
        the operation of such network or plan, including the purchase
        or lease of equipment (including the costs of amortizing the
        principal of, and paying the interest on, loans for equipment).
      (2) Use of funds
        The costs for which a grant may be made under subparagraph (A)
      or (B) of paragraph (1) may include the costs of acquiring and
      leasing buildings and equipment (including the costs of
      amortizing the principal of, and paying interest on, loans), and
      the costs of providing training related to the provision of
      required primary health services and additional health services
      and to the management of health center programs.
      (3) Construction
        The Secretary may award grants which may be used to pay the
      costs associated with expanding and modernizing existing
      buildings or constructing new buildings (including the costs of
      amortizing the principal of, and paying the interest on, loans)
      for projects approved prior to October 1, 1996.
      (4) Limitation
        Not more than two grants may be made under subparagraph (B) of
      paragraph (1) for the same entity.
      (5) Amount
        (A) In general
          The amount of any grant made in any fiscal year under
        subparagraphs (A) and (B) of paragraph (1) to a health center
        shall be determined by the Secretary, but may not exceed the
        amount by which the costs of operation of the center in such
        fiscal year exceed the total of - 
            (i) State, local, and other operational funding provided to
          the center; and
            (ii) the fees, premiums, and third-party reimbursements,
          which the center may reasonably be expected to receive for
          its operations in such fiscal year.
        (B) Networks and plans
          The total amount of grant funds made available for any fiscal
        year under paragraph (1)(C) and subparagraphs (B) and (C) of
        subsection (c)(1) of this section to a health center or to a
        network or plan shall be determined by the Secretary, but may
        not exceed 2 percent of the total amount appropriated under
        this section for such fiscal year.
        (C) Payments
          Payments under grants under subparagraph (A) or (B) of
        paragraph (1) shall be made in advance or by way of
        reimbursement and in such installments as the Secretary finds
        necessary and adjustments may be made for overpayments or
        underpayments.
        (D) Use of nongrant funds
          Nongrant funds described in clauses (i) and (ii) of
        subparagraph (A), including any such funds in excess of those
        originally expected, shall be used as permitted under this
        section, and may be used for such other purposes as are not
        specifically prohibited under this section if such use furthers
        the objectives of the project.
    (f) Infant mortality grants
      (1) In general
        The Secretary may make grants to health centers for the purpose
      of assisting such centers in - 
          (A) providing comprehensive health care and support services
        for the reduction of - 
            (i) the incidence of infant mortality; and
            (ii) morbidity among children who are less than 3 years of
          age; and

          (B) developing and coordinating service and referral
        arrangements between health centers and other entities for the
        health management of pregnant women and children described in
        subparagraph (A).
      (2) Priority
        In making grants under this subsection the Secretary shall give
      priority to health centers providing services to any medically
      underserved population among which there is a substantial
      incidence of infant mortality or among which there is a
      significant increase in the incidence of infant mortality.
      (3) Requirements
        The Secretary may make a grant under this subsection only if
      the health center involved agrees that - 
          (A) the center will coordinate the provision of services
        under the grant to each of the recipients of the services;
          (B) such services will be continuous for each such recipient;
          (C) the center will provide follow-up services for
        individuals who are referred by the center for services
        described in paragraph (1);
          (D) the grant will be expended to supplement, and not
        supplant, the expenditures of the center for primary health
        services (including prenatal care) with respect to the purpose
        described in this subsection; and
          (E) the center will coordinate the provision of services with
        other maternal and child health providers operating in the
        catchment area.
    (g) Migratory and seasonal agricultural workers
      (1) In general
        The Secretary may award grants for the purposes described in
      subsections (c), (e), and (f) of this section for the planning
      and delivery of services to a special medically underserved
      population comprised of - 
          (A) migratory agricultural workers, seasonal agricultural
        workers, and members of the families of such migratory and
        seasonal agricultural workers who are within a designated
        catchment area; and
          (B) individuals who have previously been migratory
        agricultural workers but who no longer meet the requirements of
        subparagraph (A) of paragraph (3) because of age or disability
        and members of the families of such individuals who are within
        such catchment area.
      (2) Environmental concerns
        The Secretary may enter into grants or contracts under this
      subsection with public and private entities to - 
          (A) assist the States in the implementation and enforcement
        of acceptable environmental health standards, including
        enforcement of standards for sanitation in migratory
        agricultural worker and seasonal agricultural worker labor
        camps, and applicable Federal and State pesticide control
        standards; and
          (B) conduct projects and studies to assist the several States
        and entities which have received grants or contracts under this
        section in the assessment of problems related to camp and field
        sanitation, exposure to unsafe levels of agricultural chemicals
        including pesticides, and other environmental health hazards to
        which migratory agricultural workers and seasonal agricultural
        workers, and members of their families, are exposed.
      (3) Definitions
        For purposes of this subsection:
        (A) Migratory agricultural worker
          The term "migratory agricultural worker" means an individual
        whose principal employment is in agriculture, who has been so
        employed within the last 24 months, and who establishes for the
        purposes of such employment a temporary abode.
        (B) Seasonal agricultural worker
          The term "seasonal agricultural worker" means an individual
        whose principal employment is in agriculture on a seasonal
        basis and who is not a migratory agricultural worker.
        (C) Agriculture
          The term "agriculture" means farming in all its branches,
        including - 
            (i) cultivation and tillage of the soil;
            (ii) the production, cultivation, growing, and harvesting
          of any commodity grown on, in, or as an adjunct to or part of
          a commodity grown in or on, the land; and
            (iii) any practice (including preparation and processing
          for market and delivery to storage or to market or to
          carriers for transportation to market) performed by a farmer
          or on a farm incident to or in conjunction with an activity
          described in clause (ii).
    (h) Homeless population
      (1) In general
        The Secretary may award grants for the purposes described in
      subsections (c), (e), and (f) of this section for the planning
      and delivery of services to a special medically underserved
      population comprised of homeless individuals, including grants
      for innovative programs that provide outreach and comprehensive
      primary health services to homeless children and youth and
      children and youth at risk of homelessness.
      (2) Required services
        In addition to required primary health services (as defined in
      subsection (b)(1) of this section), an entity that receives a
      grant under this subsection shall be required to provide
      substance abuse services as a condition of such grant.
      (3) Supplement not supplant requirement
        A grant awarded under this subsection shall be expended to
      supplement, and not supplant, the expenditures of the health
      center and the value of in kind contributions for the delivery of
      services to the population described in paragraph (1).
      (4) Temporary continued provision of services to certain former
        homeless individuals
        If any grantee under this subsection has provided services
      described in this section under the grant to a homeless
      individual, such grantee may, notwithstanding that the individual
      is no longer homeless as a result of becoming a resident in
      permanent housing, expend the grant to continue to provide such
      services to the individual for not more than 12 months.
      (5) Definitions
        For purposes of this section:
        (A) Homeless individual
          The term "homeless individual" means an individual who lacks
        housing (without regard to whether the individual is a member
        of a family), including an individual whose primary residence
        during the night is a supervised public or private facility
        that provides temporary living accommodations and an individual
        who is a resident in transitional housing.
        (B) Substance abuse
          The term "substance abuse" has the same meaning given such
        term in section 290cc-34(4) of this title.
        (C) Substance abuse services
          The term "substance abuse services" includes detoxification,
        risk reduction, outpatient treatment, residential treatment,
        and rehabilitation for substance abuse provided in settings
        other than hospitals.
    (i) Residents of public housing
      (1) In general
        The Secretary may award grants for the purposes described in
      subsections (c), (e), and (f) of this section for the planning
      and delivery of services to a special medically underserved
      population comprised of residents of public housing (such term,
      for purposes of this subsection, shall have the same meaning
      given such term in section 1437a(b)(1) of this title) and
      individuals living in areas immediately accessible to such public
      housing.
      (2) Supplement not supplant
        A grant awarded under this subsection shall be expended to
      supplement, and not supplant, the expenditures of the health
      center and the value of in kind contributions for the delivery of
      services to the population described in paragraph (1).
      (3) Consultation with residents
        The Secretary may not make a grant under paragraph (1) unless,
      with respect to the residents of the public housing involved, the
      applicant for the grant - 
          (A) has consulted with the residents in the preparation of
        the application for the grant; and
          (B) agrees to provide for ongoing consultation with the
        residents regarding the planning and administration of the
        program carried out with the grant.
    (j) Access grants
      (1) In general
        The Secretary may award grants to eligible health centers with
      a substantial number of clients with limited English speaking
      proficiency to provide translation, interpretation, and other
      such services for such clients with limited English speaking
      proficiency.
      (2) Eligible health center
        In this subsection, the term "eligible health center" means an
      entity that - 
          (A) is a health center as defined under subsection (a) of
        this section;
          (B) provides health care services for clients for whom
        English is a second language; and
          (C) has exceptional needs with respect to linguistic access
        or faces exceptional challenges with respect to linguistic
        access.
      (3) Grant amount
        The amount of a grant awarded to a center under this subsection
      shall be determined by the Administrator. Such determination of
      such amount shall be based on the number of clients for whom
      English is a second language that is served by such center, and
      larger grant amounts shall be awarded to centers serving larger
      numbers of such clients.
      (4) Use of funds
        An eligible health center that receives a grant under this
      subsection may use funds received through such grant to - 
          (A) provide translation, interpretation, and other such
        services for clients for whom English is a second language,
        including hiring professional translation and interpretation
        services; and
          (B) compensate bilingual or multilingual staff for language
        assistance services provided by the staff for such clients.
      (5) Application
        An eligible health center desiring a grant under this
      subsection shall submit an application to the Secretary at such
      time, in such manner, and containing such information as the
      Secretary may reasonably require, including - 
          (A) an estimate of the number of clients that the center
        serves for whom English is a second language;
          (B) the ratio of the number of clients for whom English is a
        second language to the total number of clients served by the
        center;
          (C) a description of any language assistance services that
        the center proposes to provide to aid clients for whom English
        is a second language; and
          (D) a description of the exceptional needs of such center
        with respect to linguistic access or a description of the
        exceptional challenges faced by such center with respect to
        linguistic access.
      (6) Authorization of appropriations
        There are authorized to be appropriated to carry out this
      subsection, in addition to any funds authorized to be
      appropriated or appropriated for health centers under any other
      subsection of this section, such sums as may be necessary for
      each of fiscal years 2002 through 2006.
    (k) Applications
      (1) Submission
        No grant may be made under this section unless an application
      therefore is submitted to, and approved by, the Secretary. Such
      an application shall be submitted in such form and manner and
      shall contain such information as the Secretary shall prescribe.
      (2) Description of need
        An application for a grant under subparagraph (A) or (B) of
      subsection (e)(1) of this section for a health center shall
      include - 
          (A) a description of the need for health services in the
        catchment area of the center;
          (B) a demonstration by the applicant that the area or the
        population group to be served by the applicant has a shortage
        of personal health services; and
          (C) a demonstration that the center will be located so that
        it will provide services to the greatest number of individuals
        residing in the catchment area or included in such population
        group.

      Such a demonstration shall be made on the basis of the criteria
      prescribed by the Secretary under subsection (b)(3) of this
      section or on any other criteria which the Secretary may
      prescribe to determine if the area or population group to be
      served by the applicant has a shortage of personal health
      services. In considering an application for a grant under
      subparagraph (A) or (B) of subsection (e)(1) of this section, the
      Secretary may require as a condition to the approval of such
      application an assurance that the applicant will provide any
      health service defined under paragraphs (1) and (2) of subsection
      (b) of this section that the Secretary finds is needed to meet
      specific health needs of the area to be served by the applicant.
      Such a finding shall be made in writing and a copy shall be
      provided to the applicant.
      (3) Requirements
        Except as provided in subsection (e)(1)(B) of this section, the
      Secretary may not approve an application for a grant under
      subparagraph (A) or (B) of subsection (e)(1) of this section
      unless the Secretary determines that the entity for which the
      application is submitted is a health center (within the meaning
      of subsection (a) of this section) and that - 
          (A) the required primary health services of the center will
        be available and accessible in the catchment area of the center
        promptly, as appropriate, and in a manner which assures
        continuity;
          (B) the center has made and will continue to make every
        reasonable effort to establish and maintain collaborative
        relationships with other health care providers in the catchment
        area of the center;
          (C) the center will have an ongoing quality improvement
        system that includes clinical services and management, and that
        maintains the confidentiality of patient records;
          (D) the center will demonstrate its financial responsibility
        by the use of such accounting procedures and other requirements
        as may be prescribed by the Secretary;
          (E) the center - 
            (i)(I) has or will have a contractual or other arrangement
          with the agency of the State, in which it provides services,
          which administers or supervises the administration of a State
          plan approved under title XIX of the Social Security Act [42
          U.S.C. 1396 et seq.] for the payment of all or a part of the
          center's costs in providing health services to persons who
          are eligible for medical assistance under such a State plan;
          and
            (II) has or will have a contractual or other arrangement
          with the State agency administering the program under title
          XXI of such Act (42 U.S.C. 1397aa et seq.) with respect to
          individuals who are State children's health insurance program
          beneficiaries; or
            (ii) has made or will make every reasonable effort to enter
          into arrangements described in subclauses (I) and (II) of
          clause (i);

          (F) the center has made or will make and will continue to
        make every reasonable effort to collect appropriate
        reimbursement for its costs in providing health services to
        persons who are entitled to insurance benefits under title
        XVIII of the Social Security Act [42 U.S.C. 1395 et seq.], to
        medical assistance under a State plan approved under title XIX
        of such Act [42 U.S.C. 1396 et seq.], or to assistance for
        medical expenses under any other public assistance program or
        private health insurance program;
          (G) the center - 
            (i) has prepared a schedule of fees or payments for the
          provision of its services consistent with locally prevailing
          rates or charges and designed to cover its reasonable costs
          of operation and has prepared a corresponding schedule of
          discounts to be applied to the payment of such fees or
          payments, which discounts are adjusted on the basis of the
          patient's ability to pay;
            (ii) has made and will continue to make every reasonable
          effort - 
              (I) to secure from patients payment for services in
            accordance with such schedules; and
              (II) to collect reimbursement for health services to
            persons described in subparagraph (F) on the basis of the
            full amount of fees and payments for such services without
            application of any discount;

            (iii)(I) will assure that no patient will be denied health
          care services due to an individual's inability to pay for
          such services; and
            (II) will assure that any fees or payments required by the
          center for such services will be reduced or waived to enable
          the center to fulfill the assurance described in subclause
          (I); and
            (iv) has submitted to the Secretary such reports as the
          Secretary may require to determine compliance with this
          subparagraph;

          (H) the center has established a governing board which except
        in the case of an entity operated by an Indian tribe or tribal
        or Indian organization under the Indian Self-Determination Act
        [25 U.S.C. 450f et seq.] or an urban Indian organization under
        the Indian Health Care Improvement Act (25 U.S.C. 1651 et seq.)
        - 
            (i) is composed of individuals, a majority of whom are
          being served by the center and who, as a group, represent the
          individuals being served by the center;
            (ii) meets at least once a month, selects the services to
          be provided by the center, schedules the hours during which
          such services will be provided, approves the center's annual
          budget, approves the selection of a director for the center,
          and, except in the case of a governing board of a public
          center (as defined in the second sentence of this paragraph),
          establishes general policies for the center; and
            (iii) in the case of an application for a second or
          subsequent grant for a public center, has approved the
          application or if the governing body has not approved the
          application, the failure of the governing body to approve the
          application was unreasonable;

        except that, upon a showing of good cause the Secretary shall
        waive, for the length of the project period, all or part of the
        requirements of this subparagraph in the case of a health
        center that receives a grant pursuant to subsection (g), (h),
        (i), or (p) of this section;
          (I) the center has developed - 
            (i) an overall plan and budget that meets the requirements
          of the Secretary; and
            (ii) an effective procedure for compiling and reporting to
          the Secretary such statistics and other information as the
          Secretary may require relating to - 
              (I) the costs of its operations;
              (II) the patterns of use of its services;
              (III) the availability, accessibility, and acceptability
            of its services; and
              (IV) such other matters relating to operations of the
            applicant as the Secretary may require;

          (J) the center will review periodically its catchment area to
        - 
            (i) ensure that the size of such area is such that the
          services to be provided through the center (including any
          satellite) are available and accessible to the residents of
          the area promptly and as appropriate;
            (ii) ensure that the boundaries of such area conform, to
          the extent practicable, to relevant boundaries of political
          subdivisions, school districts, and Federal and State health
          and social service programs; and
            (iii) ensure that the boundaries of such area eliminate, to
          the extent possible, barriers to access to the services of
          the center, including barriers resulting from the area's
          physical characteristics, its residential patterns, its
          economic and social grouping, and available transportation;

          (K) in the case of a center which serves a population
        including a substantial proportion of individuals of limited
        English-speaking ability, the center has - 
            (i) developed a plan and made arrangements responsive to
          the needs of such population for providing services to the
          extent practicable in the language and cultural context most
          appropriate to such individuals; and
            (ii) identified an individual on its staff who is fluent in
          both that language and in English and whose responsibilities
          shall include providing guidance to such individuals and to
          appropriate staff members with respect to cultural
          sensitivities and bridging linguistic and cultural
          differences;

          (L) the center, has developed an ongoing referral
        relationship with one or more hospitals; and
          (M) the center encourages persons receiving or seeking health
        services from the center to participate in any public or
        private (including employer-offered) health programs or plans
        for which the persons are eligible, so long as the center, in
        complying with this subparagraph, does not violate the
        requirements of subparagraph (G)(iii)(I).

      For purposes of subparagraph (H), the term "public center" means
      a health center funded (or to be funded) through a grant under
      this section to a public agency.
      (4) Approval of new or expanded service applications
        The Secretary shall approve applications for grants under
      subparagraph (A) or (B) of subsection (e)(1) of this section for
      health centers which - 
          (A) have not received a previous grant under such subsection;
        or
          (B) have applied for such a grant to expand their services;

      in such a manner that the ratio of the medically underserved
      populations in rural areas which may be expected to use the
      services provided by such centers to the medically underserved
      populations in urban areas which may be expected to use the
      services provided by such centers is not less than two to three
      or greater than three to two.
    (l) Technical assistance
      The Secretary shall establish a program through which the
    Secretary shall provide (either through the Department of Health
    and Human Services or by grant or contract) technical and other
    assistance to eligible entities to assist such entities to meet the
    requirements of subsection (k)(3) of this section. Services
    provided through the program may include necessary technical and
    nonfinancial assistance, including fiscal and program management
    assistance, training in fiscal and program management, operational
    and administrative support, and the provision of information to the
    entities of the variety of resources available under this
    subchapter and how those resources can be best used to meet the
    health needs of the communities served by the entities.
    (m) Memorandum of agreement
      In carrying out this section, the Secretary may enter into a
    memorandum of agreement with a State. Such memorandum may include,
    where appropriate, provisions permitting such State to - 
        (1) analyze the need for primary health services for medically
      underserved populations within such State;
        (2) assist in the planning and development of new health
      centers;
        (3) review and comment upon annual program plans and budgets of
      health centers, including comments upon allocations of health
      care resources in the State;
        (4) assist health centers in the development of clinical
      practices and fiscal and administrative systems through a
      technical assistance plan which is responsive to the requests of
      health centers; and
        (5) share information and data relevant to the operation of new
      and existing health centers.
    (n) Records
      (1) In general
        Each entity which receives a grant under subsection (e) of this
      section shall establish and maintain such records as the
      Secretary shall require.
      (2) Availability
        Each entity which is required to establish and maintain records
      under this subsection shall make such books, documents, papers,
      and records available to the Secretary or the Comptroller General
      of the United States, or any of their duly authorized
      representatives, for examination, copying or mechanical
      reproduction on or off the premises of such entity upon a
      reasonable request therefore. The Secretary and the Comptroller
      General of the United States, or any of their duly authorized
      representatives, shall have the authority to conduct such
      examination, copying, and reproduction.
    (o) Delegation of authority
      The Secretary may delegate the authority to administer the
    programs authorized by this section to any office, except that the
    authority to enter into, modify, or issue approvals with respect to
    grants or contracts may be delegated only within the central office
    of the Health Resources and Services Administration.
    (p) Special consideration
      In making grants under this section, the Secretary shall give
    special consideration to the unique needs of sparsely populated
    rural areas, including giving priority in the awarding of grants
    for new health centers under subsections (c) and (e) of this
    section, and the granting of waivers as appropriate and permitted
    under subsections (b)(1)(B)(i) and (k)(3)(G) of this section.
    (q) Audits
      (1) In general
        Each entity which receives a grant under this section shall
      provide for an independent annual financial audit of any books,
      accounts, financial records, files, and other papers and property
      which relate to the disposition or use of the funds received
      under such grant and such other funds received by or allocated to
      the project for which such grant was made. For purposes of
      assuring accurate, current, and complete disclosure of the
      disposition or use of the funds received, each such audit shall
      be conducted in accordance with generally accepted accounting
      principles. Each audit shall evaluate - 
          (A) the entity's implementation of the guidelines established
        by the Secretary respecting cost accounting,
          (B) the processes used by the entity to meet the financial
        and program reporting requirements of the Secretary, and
          (C) the billing and collection procedures of the entity and
        the relation of the procedures to its fee schedule and schedule
        of discounts and to the availability of health insurance and
        public programs to pay for the health services it provides.

      A report of each such audit shall be filed with the Secretary at
      such time and in such manner as the Secretary may require.
      (2) Records
        Each entity which receives a grant under this section shall
      establish and maintain such records as the Secretary shall by
      regulation require to facilitate the audit required by paragraph
      (1). The Secretary may specify by regulation the form and manner
      in which such records shall be established and maintained.
      (3) Availability of records
        Each entity which is required to establish and maintain records
      or to provide for and (!2) audit under this subsection shall make
      such books, documents, papers, and records available to the
      Secretary or the Comptroller General of the United States, or any
      of their duly authorized representatives, for examination,
      copying or mechanical reproduction on or off the premises of such
      entity upon a reasonable request therefore. The Secretary and the
      Comptroller General of the United States, or any of their duly
      authorized representatives, shall have the authority to conduct
      such examination, copying, and reproduction.

      (4) Waiver
        The Secretary may, under appropriate circumstances, waive the
      application of all or part of the requirements of this subsection
      with respect to an entity.
    (r) Authorization of appropriations
      (1) In general
        For the purpose of carrying out this section, in addition to
      the amounts authorized to be appropriated under subsection (d) of
      this section, there are authorized to be appropriated
      $1,340,000,000 for fiscal year 2002 and such sums as may be
      necessary for each of the fiscal years 2003 through 2006.
      (2) Special provisions
        (A) Public centers
          The Secretary may not expend in any fiscal year, for grants
        under this section to public centers (as defined in the second
        sentence of subsection (k)(3) of this section) the governing
        boards of which (as described in subsection (k)(3)(H) of this
        section) do not establish general policies for such centers, an
        amount which exceeds 5 percent of the amounts appropriated
        under this section for that fiscal year. For purposes of
        applying the preceding sentence, the term "public centers"
        shall not include health centers that receive grants pursuant
        to subsection (h) or (i) of this section.
        (B) Distribution of grants
          For fiscal year 2002 and each of the following fiscal years,
        the Secretary, in awarding grants under this section, shall
        ensure that the proportion of the amount made available under
        each of subsections (g), (h), and (i) of this section, relative
        to the total amount appropriated to carry out this section for
        that fiscal year, is equal to the proportion of the amount made
        available under that subsection for fiscal year 2001, relative
        to the total amount appropriated to carry out this section for
        fiscal year 2001.
      (3) Funding report
        The Secretary shall annually prepare and submit to the
      appropriate committees of Congress a report concerning the
      distribution of funds under this section that are provided to
      meet the health care needs of medically underserved populations,
      including the homeless, residents of public housing, and
      migratory and seasonal agricultural workers, and the
      appropriateness of the delivery systems involved in responding to
      the needs of the particular populations. Such report shall
      include an assessment of the relative health care access needs of
      the targeted populations and the rationale for any substantial
      changes in the distribution of funds.



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