
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1320b-4]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
   SUBCHAPTER XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE 
                             SIMPLIFICATION
 
                       Part A--General Provisions
 
Sec. 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.

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


                               Amendments

    1997--Pub. L. 105-33 substituted ``critical access'' for ``rural 
primary care'' in two places in introductory provisions.
    1989--Pub. L. 101-239 substituted ``hospitals or rural primary care 
hospitals'' for ``hospitals'' in two places in introductory provisions.
    1982--Par. (4). Pub. L. 97-248 substituted ``sale'' for ``scale''.
    1981--Pub. L. 97-35 substituted ``subchapters XVIII and'' for 
``subchapters V, XVIII, and'' in provision preceding par. (1).


                    Effective Date of 1997 Amendment

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


                    Effective Date of 1982 Amendment

    Amendment by Pub. L. 97-248 effective 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) of Pub. 
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 of Pub. L. 97-35, set out 
as a note under section 701 of this title.


                             Effective Date

    Section 901(b) of Pub. L. 96-499 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].''
