PUBLIC LAW 96-79—OCT. 4, 1979
93 STAT. 637
"GRANTS FOR DISCONTINUANCE AND CONVERSION
"SEC. 1642. (a)(1) A grant to a hospital under the program shall be 42 USC 300t-i2. subject to such terms and conditions as the Secretary may by regulation prescribe to assure that the grant is used for the purpose for which it was made. "(2) The amount of any such grant shall be determined by the Secretary. The recipient of such a grant may use the grant— "(A) in the case of a grantee which discontinues the provision of all hospital services or all inpatient hospital services or an identifiable part of a hospital facility which provides inpatient hospital services, for the liquidation of the outstanding debt on the facilities of the grantee used for the provision of the services or for the liquidation of the outstanding debt of the grantee on such identifiable part; "(B) in the case of a grantee which in discontinuing the provision of an inpatient hospital service converts or proposes to convert an identifiable part of a hospital facility used in the provision of the discontinued service to the delivery of other health services, for the planning, development (including construction and acquisition of equipment), and delivery of the health service; "(C) to provide reasonable termination pay for personnel of the grantee who will lose employment because of the discontinuance of hospital services made by the grantee, retraining of such personnel, assisting such personnel in securing employment, and other costs of implementing arrangements described in subsection (c); and "(D) for such other costs which the Secretary determines may need to be incurred by the grantee in discontinuing hospital services. "(b)(1) No grant may be made to a hospital unless an application therefor is submitted to and approved by the Secretary. Such an application shall be in such form and submitted in such manner as the Secretary may prescribe and shall include— "(A) a description of each service to be discontinued and, if a part of a hospital is to be discontinued or converted to another use in connection with such discontinuance, a description of such part; "(B) an evaluation of the impact of such discontinuance and conversion on the provision of health care in the health service area in which such service is provided; "(C) an estimate of the change in the applicant's costs which will result from such discontinuance and conversion; and "(D) reasonable assurance that all laborers and mechanics employed by contractors or subcontractors in the performance of work on a project will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Act of March 3, 1931 (40 U.S.C. 276a—276a-5, known as the Davis-Bacon Act), and the Secretary of Labor shall have with respect to such labor standards the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 FR 3176; 5 U.S.C. Appendix) and section 2 of the Act of June 13, 1934 (40 U.S.C. 276c); "(E) such other information as the Secretary may require. "(2)(A) The health systems agency for the health service area in which is located a hospital applying for a grant under the program shall (i) in making the review of the applicant's application under section 1513(e), determine the need for each service or part proposed 42 USC 300/-2.
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