[Code of Federal Regulations]

[Title 42, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR505.5]



[Page 1112-1113]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 505_ESTABLISHMENT OF THE HEALTH CARE INFRASTRUCTURE IMPROVEMENT 

 

                         Subpart A_Loan Criteria

 

Sec.  505.5  Loan criteria.



    (a) Qualifying criteria. To qualify for the loan program, the 

applicant must meet the following conditions:

    (1) Meet the definition of a ``qualifying hospital'' as set forth in 

Sec.  505.3 of this part.

    (2) Request a loan for the capital costs of an ``eligible project'' 

as defined in Sec.  505.3 of this part. The capital costs



[[Page 1113]]



for which a qualifying hospital may obtain a loan are limited to the 

reasonable costs incurred by the hospital, and capitalized on the 

Medicare cost report, for any facility or item of equipment that it has 

acquired the possession or use of at the time the loan funding is 

awarded.

    (b) Selection criteria. In selecting loan recipients, CMS 

prioritizes qualifying hospitals that meet the following criteria:

    (1) The hospital is located in a State that, based on population 

density, is defined as a rural State. A rural State is one of ten States 

with the lowest population density. An applicant entity is required to 

be located in one of these ten States. The ten States are prioritized 

beginning with the State with the lowest population density. Population 

density is determined based on the most recent available U.S. Census 

Bureau data.

    (2) The hospital is located in a State with multiple Indian tribes 

in the State. After prioritizing based on paragraph (b)(1) of this 

section, States are further prioritized based on the States with the 

most Indian tribes. The number of Indian tribes in a State is based on 

the most recent data available published in ``Indian Entities Recognized 

and Eligible to Receive Services from the United State Bureau of Indian 

Affairs.'' (68 FR 68180) published on December 5, 2003.

    (c) CMS will send written notice to qualifying hospitals that have 

been selected to participate in the loan program under this part.