General rules
(a) General rules. Payment for certain voluntary services by physicians in teaching hospitals (as these services are described in 415.160) is made on a salary equivalent basis (as described in 415.162(d)) subject to the conditions and limitations contained in parts 405 and 413 of this chapter and this part 415, to a single fund (as defined in paragraph (b) of this section) designated by the organized medical staff of the hospital (or, if the services are furnished in the hospital by the faculty of a medical school, to a fund as may be designated by the faculty), if the following conditions are met: (1) The hospital (or medical school furnishing the services under arrangement with the hospital) incurs no actual cost in furnishing the services. (2) The hospital has an agreement with CMS under part 489 of this chapter. (3) The intermediary, or CMS as appropriate, has received written assurances that (i) The payment is used solely for the improvement of care of hospital patients or for educational or charitable purposes; and (ii) Neither the individuals who are furnished the services nor any other persons are charged for the services (and if charged, provision is made for the return of any monies incorrectly collected).