12 U.S.C. § 1749aaa–5 — Definitions

This section defines the key terms used in the subchapter. It defines several kinds of medical facilities and organizations, as well as “State,” “mortgage,” “mortgagee,” and “mortgagor.”

For purposes of this subchapter—

(1) “Group practice facility” means a facility in a State for preventive, diagnostic, and treatment services for ambulatory patients. “Ambulatory patients” is not defined in this section. Patient care must be professionally supervised by people licensed in that State to practice medicine or osteopathy. Optometric care or treatment must be supervised by people licensed to practice optometry. Dental diagnosis or treatment must be supervised by people licensed to practice dentistry. Podiatric care or treatment must be supervised by people licensed to practice podiatry. The facility must mainly provide these health services through a medical or dental group.

(2) “Medical practice facility” means an adequately equipped facility where no more than four people licensed to practice medicine in the State where the facility is located can provide appropriate preventive, diagnostic, and treatment services. The facility must be in a rural area, a small town, or a low-income section of an urban area where the Secretary determines that there is a critical shortage of physicians.

(A) “Small town” means a town, village, or city with a population of no more than 10,000 inhabitants, according to the most recent available data compiled by the Bureau^* of the Census.

(B) “Low-income section of an urban area” means a section of a larger urban area where the median family income is substantially lower, as the Secretary determines, than the median family income for the urban area as a whole.

(3) “Medical or dental group” means a partnership, association, or group of people licensed in the State to practice medicine, osteopathy, surgery, optometry, dentistry, podiatry, or any combination of those professions. As their main professional activity and as a group responsibility, they must practice or undertake to practice their profession in a coordinated way, mainly in one or more group practice facilities. In connection with that practice, they must share common overhead expenses, if and to the extent group members pay those expenses; medical and other records; substantial parts of the equipment; and substantial parts of the professional, technical, and administrative staffs. The partnership, association, or group must contain at least the professional personnel and make available at least the health services that regulations under this subchapter may require.

(4) “Group practice unit or organization” means either of the following:

(A) A private nonprofit agency or organization that undertakes to provide, directly or through arrangements with a medical or dental group, comprehensive medical, osteopathic, optometric, dental, or podiatric care, or any combination of those kinds of care. The care may include hospitalization. It must be provided mainly to members or subscribers on a group-practice prepayment basis.

(B) A private nonprofit agency or organization established to improve the community's access to medical, osteopathic, optometric, dental, or podiatric care, or having a function related to providing that care. Through a lease or another arrangement, it must make the group practice facility for which assistance was requested under this subchapter available for use by a medical or dental group.

(5) “Nonprofit organization” means a corporation, association, foundation, trust, or other organization whose net earnings do not benefit, and may not lawfully benefit, any private shareholder or individual. An exception applies when the organization's purposes include providing personal health services to its members, subscribers, or their dependents under the organization's plan for providing those services. The plan may also include other services or insurance benefits. Under the plan, the organization must provide those health services, other services, or insurance benefits to the members, subscribers, or dependents.

(6) “State” includes the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, and the District of Columbia.

(7) “Mortgage” means a first mortgage on real estate held in fee simple, or on the interest of either the lessor or lessee under—

(A) a renewable lease lasting at least 99 years; or

(B) a lease with at least 50 years remaining when the mortgage is executed.

“First mortgage” means the classes of first liens commonly used under the law of the State where the real estate is located to secure advances, including construction advances, or the unpaid purchase price of real estate. It includes the credit^* instrument or instruments secured by the lien. A mortgage may be one or more trust mortgages, mortgage indentures, or deeds of trust securing notes, bonds, or other credit instruments. The same instrument or a separate instrument may also create a security interest in initial equipment, whether or not the equipment is attached to the real estate.

(8) “Mortgagee” means the original lender under a mortgage and that lender's successors and assigns. It also includes holders of credit instruments issued under a trust mortgage or deed of trust when those holders act through the trustee named in it.

(9) “Mortgagor” means the original borrower under a mortgage and that borrower's successors and assigns.