[Code of Federal Regulations] [Title 42, Volume 2] [Revised as of October 1, 2006] From the U.S. Government Printing Office via GPO Access [CITE: 42CFR403.300] [Page 43-44] TITLE 42--PUBLIC HEALTH CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES PART 403_SPECIAL PROGRAMS AND PROJECTS--Table of Contents Subpart C_Recognition of State Reimbursement Control Systems Sec. 403.300 Basis and purpose. Source: 51 FR 15492, Apr. 24, 1986, unless otherwise noted. (a) Basis. This subpart implements section 1886(c) of the Act, which authorizes payment for Medicare inpatient hospital services in accordance with a State's reimbursement control system rather than under the Medicare [[Page 44]] reimbursement principles as described in CMS's regulations and instructions. (b) Purpose. Contained in this subpart are-- (1) The basic requirements that a State reimbursement control system must meet in order to be approved by CMS; (2) A description of CMS's review and evaluation procedures; and (3) The conditions that apply if the system is approved.