42 U.S. Code § 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.

Source

(Aug. 14, 1935, ch. 531, title XI, § 1134, as added Pub. L. 96–499, title IX, § 901(a),Dec. 5, 1980, 94 Stat. 2611; amended Pub. L. 97–35, title XXI, § 2193(c)(6),Aug. 13, 1981, 95 Stat. 827; Pub. L. 97–248, title I, § 137(b)(5),Sept. 3, 1982, 96 Stat. 377; Pub. L. 101–239, title VI, § 6003(g)(3)(D)(iii),Dec. 19, 1989, 103 Stat. 2153; Pub. L. 105–33, title IV, § 4201(c)(1),Aug. 5, 1997, 111 Stat. 373.)
Amendments

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

Amendment by Pub. L. 105–33applicable to services furnished on or after Oct. 1, 1997, see section 4201(d) ofPub. L. 105–33, set out as a note under section 1395f of this title.
Effective Date of 1982 Amendment

Amendment by Pub. L. 97–248effective 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) ofPub. L. 97–248, set out as a note under section 1396a of this title.
Effective Date of 1981 Amendment, Savings, and Transitional Provisions

For effective date, savings, and transitional provisions relating to amendment by Pub. L. 97–35, see section 2194 ofPub. 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].”

 

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