42 U.S.C. § 248b — Transfer or financial self-sufficiency of public health service hospitals and clinics

(a) Deadline for closure, transfer, or financial self-sufficiency: The Secretary of Health and Human Services (called "the Secretary") must make sure every hospital and station run by the Public Health Service (called "the Service") is closed, transferred to someone else, or made financially self-sufficient. This must happen by September 30, 1982. This rule applies even though section 248a of this title says something different. (b) Proposals for transfer or financial self-sufficiency: By July 1, 1981, the Secretary must tell each Service hospital and station — and the top official of each state and locality where it sits — that the Secretary will accept proposals. A proposal can suggest transferring the hospital to a public or nonprofit private group, or making it financially self-sufficient, by September 30, 1982. The Secretary will not look at any proposal submitted after September 1, 1981. (c) Evaluation of proposals: The Secretary must quickly review each proposal and decide, by September 30, 1981, whether the hospital or station would: (1) stay open as a general health facility serving its area; (2) keep serving the patients it already has; and (3) have a reasonable chance of financial viability — or, if it isn't being transferred, of full financial self-sufficiency. Rule (1) does not apply if the proposal is to transfer a small, separate part of a hospital to a local public entity just to keep serving refugees. (d) Rejection or approval of proposal: (1) If a proposal fails these standards, or no proposal was submitted, the Secretary must close the hospital or station by October 31, 1981. (2) If a proposal meets the standards, the Secretary — using available appropriated funds — must take the steps necessary to: (A) keep running the hospital through the Service until the transfer happens or it becomes self-sufficient; (B) bring the hospital up to the licensing, accreditation, and local medical practice standards it needs; and (C) make legal, administrative, personnel, and financial arrangements — including letting payment for its services go straight to the hospital — needed for an orderly transfer (including its land, buildings, and equipment) or to reach self-sufficiency, by September 30, 1982. (e) Establishment of identifiable administrative unit: The law creates a specific unit inside the Office of the Assistant Secretary for Health, within the Department of Health and Human Services. This unit is directly responsible for overseeing everything this section requires. (f) Finding of financial self-sufficiency: A hospital or station is not "financially self-sufficient" if it still relies, even partly, on direct appropriated government funds to keep running.