63 STAT.] 81ST CONG. , 1ST SESS.-CH. 722-OCT. 25 , 1949 ADDITIONAL FEDERAL AID IN CONSTRUCTION OF HOSPITALS SEC. 3 . (a) Section 623 of the Public Health Service Act is amended by adding after subsection (d) the following new subsection: "(e) The State plan may include standards for determination of the Federal share of the cost of projects approved in the State. Such standards shall provide equitably (and, to the extent practicable, on the basis of objective criteria) for variations between projects or classes of projects on the basis of the economic status of areas, relative need as between areas for additional hospital facilities, and other relevant factors. No such standards shall provide for a Federal share of more than 662/3 per centum or less than 331/3 per centum of the cost of construction of any project. The Surgeon General shall approve any such standards and any modifications thereof which comply with the provisions of this subsection." (b) Sections 624 and 625 (b) of such Act are each amended by striking out "33%/ per centum" and inserting in lieu thereof "the Federal share". (c) Section 625 (e) of such Act is amended by striking out "331/3 per centum of the then value of such hospital, as determined by agree- ment of the parties or by action brought in the district court of the United States for the district in which such hospital is situated" and inserting in lieu thereof the following: "an amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the district court of the United States for the district in which such hospital is situated) of so much of the hospital as constituted an approved project or projects, as the amount of the Federal participation bore to the cost of the construction of such project or projects". (d) Section 625 of such Act is amended by adding at the end thereof the following new subsection: "(f) If the Surgeon General finds with respect to an application for a hospital project that- "(1) the project is for the completion of a hospital the con- struction of which was commenced prior to the effective date of this subsection and without Federal aid under this title; "(2) completion of construction is necessary for use of the completed portion as a hospital; "(3) the State agency has certified that the applicant is unable, by use of all available funds and by exercise of reasonable effort in obtaining additional funds, to pay the non-Federal share (determined without regard to this subsection) of the cost of completing the hospital but will be able to complete construction with the additional Federal aid provided by this subsection; "(4) the plans and specifications for the entire hospital are in accord with the regulations prescribed pursuant to section 622, or if not in accord with such regulations, meet substantially the objectives of such regulations; "(5) the application meets all the requirements of subsection (a) of this section except in the respects covered by clauses (3) and (4) hereof and contains assurances applicable to the opera- tion and maintenance of the entire hospital which meet the requirements of such subsection; and (6) the unobligated balance of the sum allotted to the State is equal to or greater than the Federal share of the estimated cost of construction of such project plus the additional amount specified below in this subsection; he shall approve the application. Upon such approval the Federal share of the estimated cost of such project plus an additional amount 899 60 Stat. 1043 . 42 U.S. C. I 291f; Supp. II, § 291f. 60 Stat. 1045,1046. 42 . . C.§291h(b); Supp. II , § 291g. Post, p. 901. 60 Stat. 1046. 42 U... . 291h (e). 60 Stat. 1045. 42U.S. .§ 291h. Findings in applica- tion for hospital proj- ect. Contractual obliga- tion of Federal Gov- rnment.
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