PUBLIC LAW 93-641-JAN. 4, 1975
" (C) provide for such methods of administration as fomid by the Secretary to be necessary for the proper and efficient administration of such functions; " (D) perform its functions in accordance with procedures established and published by it, which procedures shall conform to the requirements of section 1532; " (E) comply with the requirements prescribed by paragraphs (6) through (12) of section 1522(b) with respect to the functions prescribed by subsection (a); " (F) provide for the establishment of a procedure under which the State Agency will obtain the recommendation of the appropriate health systems agency prior to conducting a review of the rates charged or proposed to be charged for services; and " (G) meet such other requirements as the Secretary may prescribe. "(2) I n prescribing requirements under paragraph (1) of this subsection, the Secretary shall consider the manner in which a State Agency shall perform its functions under a grant under subsection (a), including whether the State Agency should— " (A) permit those engaged in the delivery of health services to retain savings accruing to them from effective management and cost control, " (B) create incentives at each point in the delivery of health services for utilization of the most economical modes of services feasible, " (C) document the need for and cost implications of each new service for which a determination of reimbursement rates is sought, and " (D) employ for each type or class of person engaged in the delivery of health services— "(i) a unit for determining the reimbursement rates, and "(ii) a base for determining rates of change in the reimbursement rates, which unit and base are satisfactory to the Secretary. Terms and con"(c) Grants under subsection (a) shall be made on such terms and ditions. conditions as the Secretary may prescribe, except that (1) such a grant shall be available for obligation only during the one-year period beginning on the date such grant was made, and (2) no State Agency may receive more than three grants tinder subsection (a). Report to secre(d) Each State Agency which receives a grant under subsection tary. (a) shall report to the Secretary (in such form and manner as he shall prescribe) on the effectiveness of the rate regulation program assisted fsT"*^*'° ^°"' by such grant. The Secretary shall report annually to the Congress on gress the effectiveness of the programs assisted by the grants authorized by subsection (a). Appropriations. "(e) Thcrc are authorized to be appropriated to make payments under grants under subsection (a), $4,000,000 for the fiscal year ending June 30, 1975, $5,000,000 for the fiscal year ending June 30, 1976, and $6,000,000 for the fiscal year ending June 30, 1977. "PART D—GENERAL PROVISIONS a DEFINITIONS
42 USC 3oon.
"SEC. 1531. FoT purposes of this title t "(1) The term 'State' includes the District of Columbia and the Commonwealth of Puerto Rico. " (2) The term 'Governor' means the chief executive officer of a State or his designee.