
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC248b]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
                SUBCHAPTER II--GENERAL POWERS AND DUTIES
 
        Part C--Hospitals, Medical Examinations, and Medical Care
 
Sec. 248b. Transfer or financial self-sufficiency of public 
        health service hospitals and clinics
        

(a) Deadline for closure, transfer, or financial self-sufficiency

    The Secretary of Health and Human Services (hereinafter in this 
subtitle referred to as the ``Secretary'') shall, in accordance with 
this section and notwithstanding section 248a of this title, provide for 
the closure, transfer, or financial self-sufficiency of all hospitals 
and other stations of the Public Health Service (hereinafter in this 
subtitle referred to as the ``Service'') not later than September 30, 
1982.

(b) Proposals for transfer or financial self-sufficiency

    Not later than July 1, 1981, the Secretary shall notify each Service 
hospital and other station, and the chief executive officer of each 
State and of each locality in which such a hospital or other station is 
located, that the Secretary will accept proposals for the transfer of 
each such hospital and station from the Service to a public (including 
Federal) or nonprofit private entity or for the achievement of financial 
self-sufficiency of each such hospital and station not later than 
September 30, 1982. No such proposal shall be considered by the 
Secretary if it is submitted later than September 1, 1981.

(c) Evaluation of proposals

    The Secretary shall evaluate promptly each proposal submitted under 
subsection (b) of this section with respect to a hospital or other 
station and determine, not later than September 30, 1981, whether or not 
under such proposal the hospital or station--
        (1) will be maintained as a general health care facility 
    providing a range of services to the population within its service 
    area,
        (2) will continue to make services available to existing patient 
    populations, and
        (3) has a reasonable expectation of financial viability and, in 
    the case of a hospital or station that is not proposed to be 
    transferred, of financial self-sufficiency.

    Paragraph (1) shall not apply in the case of a proposal for the 
transfer of a discrete, minor, freestanding part of a hospital or 
station to a local public entity for the purpose of continuing the 
provision of services to refugees.

(d) Rejection or approval of proposal

    (1) If the Secretary determines that a proposal for a hospital or 
other station does not meet the standards of subsection (c) of this 
section or if there is no proposal submitted under subsection (b) of 
this section with respect to a hospital or other station, the Secretary 
shall provide for the closure of the hospital or station by not later 
than October 31, 1981.
    (2) If the Secretary determines that a proposal for a hospital or 
other station meets the standards of subsection (c) of this section, the 
Secretary shall take such steps, within the amounts available through 
appropriations, as may be necessary and proper--
        (A) to operate (or participate or assist in the operation of) 
    the hospital or station by the Service until the transfer is 
    accomplished or financial self-sufficiency is achieved,
        (B) to bring the hospital or station into compliance with 
    applicable licensure, accreditation, and local medical practice 
    standards, and
        (C) to provide for such other legal, administrative, personnel, 
    and financial arrangements (including allowing payments made with 
    respect to services provided by the hospital or station to be made 
    directly to that hospital or station) as may be necessary to effect 
    a timely and orderly transfer of such hospital or station (including 
    the land, building, and equipment thereof) from the Service, or for 
    the financial self-sufficiency of the hospital or station, not later 
    than September 30, 1982.

(e) Establishment of identifiable administrative unit

    There is established, within the Office of the Assistant Secretary 
for Health of the Department of Health and Human Services, an 
identifiable administrative unit which shall have direct responsibility 
and authority for overseeing the activities under this section.

(f) Finding of financial self-sufficiency

    For purposes of this section, a hospital or station cannot be found 
to be financially self-sufficient if the hospital or station is relying, 
in whole or in part, on direct appropriated funds for its continued 
operations.

(Pub. L. 97-35, title IX, Sec. 987, Aug. 13, 1981, 95 Stat. 603.)

                       References in Text

    This subtitle, referred to in subsec. (a), is subtitle J of title IX 
of Pub. L. 97-35, Secs. 985 to 988, Aug. 13, 1981, 95 Stat. 602, which 
enacted this section, amended sections 201, 249, and 254e of this title, 
and enacted provisions set out as notes under this section and section 
249 of this title. For complete classification of this subtitle to the 
Code, see Tables.
    Section 248a of this title, referred to in subsec. (a), was in the 
original ``section 818 of Public Law 93-155'', meaning section 818 of 
Pub. L. 93-155, title VIII, Nov. 16, 1973, 87 Stat. 622, which enacted 
section 248a of this title and repealed section 3 of Pub. L. 92-585, 
Oct. 27, 1972, 86 Stat. 1292.

                          Codification

    Section was enacted as part of the Omnibus Budget Reconciliation Act 
of 1981, and not as part of the Public Health Service Act which 
comprises this chapter.


            Congressional Findings and Declaration of Purpose

    Section 985 of Pub. L. 97-35 provided that:
    ``(a) Congress finds that--
        ``(1) because of national budgetary considerations, it has 
    become necessary to terminate Federal appropriations for Public 
    Health Service hospitals and clinics,
        ``(2) with proper planning and coordination, some of these 
    hospitals and clinics could be transferred to State, local, or 
    private control or become financially self-sufficient and continue 
    to provide effective and efficient health care to individuals in the 
    areas in which they are located,
        ``(3) a precipitous closure of these hospitals and clinics will 
    preclude the possibility of such orderly transfer to entities which 
    are willing and able to take over operations at such facilities and 
    will cause unnecessary and costly hardships on the patients and 
    staffs at such facilities and on the communities in which the 
    facilities are located, and
        ``(4) it is in the national interest, consistent with sound 
    budgetary considerations, to assist in the orderly and prompt 
    transfer of such operations to State, local, or private operation or 
    in the achievement of financial self-sufficiency where feasible.
    ``(b) The purposes of this subtitle [enacting this section, amending 
sections 201, 249, and 254e of this title, and enacting provisions set 
out as notes under section 249 of this title] are--
        ``(1) to provide for the prompt and orderly closure by October 
    31, 1981, of Public Health Service hospitals and clinics which 
    cannot reasonably be transferred to State, local, or private 
    operation or become financially self-sufficient and for the transfer 
    or achievement of financial self-sufficiency by September 30, 1982, 
    of those hospitals and clinics which can be so transferred or which 
    can achieve such financial self-sufficiency, and
        ``(2) to provide for transitional assistance for merchant seamen 
    whose entitlement to receive free care through Public Health Service 
    hospitals and clinics is repealed and who are hospitalized at the 
    end of fiscal year 1981 and require continuing hospitalization.''
