Laws: Cases and Codes : U.S. Code : Title 42 : Section 1320b-4


   
U.S. Code as of: 01/19/04
Section 1320b-4. Nonprofit hospital or critical access hospital philanthropy

      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.

    Paragraph (4) shall not apply to the recovery of the appropriate
    share of depreciation when gains or losses are realized from the
    disposal of depreciable assets.



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