PUBLIC LAW 100-208—DEC. 22, 1987
101 STAT. 1330-51
(A) is located in a rural area (as determined in accordance with subsection (d)), (B) has less than 100 beds, and (C) is not for profit. (3)(A) Any eligible small rural hospital that desires to modify the type or extent of health care services that it provides in order to adjust for one or more of the factors specified in paragraph (1) may submit an application to the Governor of the State in which it is located. The application shall specify the nature of the project proposed by the hospital, the data and information on which the project is based, and a timetable (of not more than 24 months) for completion of the project. The application shall be submitted on or before a date specified by the Administrator and shall be in such form as the Administrator may require. (B) The Governor shall transmit any application submitted pursuant to subparagraph (A) to the Secretary not later than 30 days after it is received by the Governor, accompanied by any comments with respect to the application that the Governor deems appropriate. (C) The Governor of a State may designate an appropriate State agency to receive and comment on applications submitted under subparagraph (A). (4) A hospital shall be considered to be located in a rural area for purposes of this subsection if it is treated as being located in a rural area for purposes of section 1886(d)(3)(D) of the Social Security Act. (5) In determining which hospitals making application under paragraph (3) will receive grants under this subsection, the Administrator shall take into account— (A) any comments received under paragraph (3)(B) with respect to a proposed project; (B) the effect that the project will have on— (i) reducing expenditures from the Federal Hospital Insurance Trust Fund, (ii) improving the access of medicare beneficiaries to health care of a reasonable quality; (C) the extent to which the proposal of the hospital, using appropriate data, demonstrates an understanding of— (i) the primary market or service area of the hospital, and (ii) the health care needs of the elderly and disabled ' that are not currently being met by providers in such market or area, and (D) the degree of coordination that may be expected between the proposed project and— (i) other local or regional health care providers, and (ii) community and government leaders, as evidenced by the availability of support for the project (in cash or in kind) and other relevant factors. (6) A grant to a hospital under this subsection may not exceed $50,000 a year and may not exceed a term of 2 years. (7)(A) Except as provided in subparagraphs (D) and (C), a hospital receiving a grant under this subsection may use the grant for any of expenses incurred in planning and implementing the project with respect to which the grant is made.