§ 15902 — Demonstration Health Projects

(a) To demonstrate the value of adequate health facilities and services to the economic development of the region, a Commission may make grants for the planning, construction, equipment, and operation of demonstration health, nutrition, and child care projects to serve distressed areas (referred to in this section as a “demonstration health project”), including hospitals, regional health diagnostic and treatment centers, and other facilities and services necessary for the purposes of this section. (b) An entity eligible to receive a grant under this section is— (1) an entity described in section 15501(a); (2) an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))); (3) a hospital (as defined in section 1861 of the Social Security Act (42 U.S.C. 1395x)); or (4) a critical access hospital (as defined in that section). (1) A Commission may make grants for planning expenses necessary for the development and operation of demonstration health projects for the region served by the Commission. (2) The maximum Commission contribution for a demonstration health project that receives a grant under paragraph (1) shall be made in accordance with section 15501(d). (3) A grant under paragraph (1) may be provided entirely from amounts made available to carry out this section or in combination with amounts provided under other Federal grant programs. (4) Notwithstanding any provision of law limiting the Federal share in other Federal grant programs, amounts made available to carry out this subsection may be used to increase the Federal share of another Federal grant up to the maximum contribution described in paragraph (2). (1) A grant under this section for construction or equipment of a demonstration health project may be used for— (A) costs of construction; (B) the acquisition of privately owned facilities— (i) not operated for profit; or (ii) previously operated for profit if the Commission finds that health services would not otherwise be provided in the area served by the facility if the acquisition is not made; and (C) the acquisition of initial equipment. (2) A grant under paragraph (1)— (A) shall be approved in accordance with section 15503; and (B) shall not be incompatible with the applicable provisions of title VI of the Public Health Service Act (42 U.S.C. 291 et seq.), the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15001 et seq.), and other laws authorizing grants for the construction of health-related facilities, without regard to any provisions in those laws relating to appropriation authorization ceilings or to allotments among the States. (3) The maximum Commission contribution for a demonstration health project that receives a grant under paragraph (1) shall be made in accordance with section 15501(d). (4) A grant under paragraph (1) may be provided entirely from amounts made available to carry out this section or in combination with amounts provided under other Federal grant programs. (5) Notwithstanding any provision of law limiting the Federal share in another Federal grant program for the construction or equipment of a demonstration health project, amounts made available to carry out this subsection may be used to increase Federal grants for component facilities of a demonstration health project to a maximum of 90 percent of the cost of the facilities. (1) A grant under this section for the operation of a demonstration health project may be used for— (A) the costs of operation of the facility; and (B) initial operating costs, including the costs of attracting, training, and retaining qualified personnel. (2) A grant for the operation of a demonstration health project shall not be made unless the facility funded by the grant is— (A) publicly owned; (B) owned by a public or private nonprofit organization; (C) a private hospital described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code; or (D) a private hospital that provides a certain amount of uncompensated care, as determined by the Commission, and applies for the grant in partnership with a State, local government, or Indian Tribe. (3) The maximum Commission contribution for a demonstration health project that receives a grant under paragraph (1) shall be made in accordance with section 15501(d). (4) A grant under paragraph (1) may be provided entirely from amounts made available to carry out this section or in combination with amounts provided under other Federal grant programs for the operation of health-related facilities or the provision of health and child development services, including parts A and B of title IV and title XX of the Social Security Act (42 U.S.C. 601 et seq., 621 et seq., 1397 et seq.). (5) Notwithstanding any provision of law limiting the Federal share in the other Federal programs described in paragraph (4), amounts made available to carry out this subsection may be used to increase the Federal share of a grant under those programs up to the maximum contribution described in paragraph (3). (f) If a Commission elects to make grants under this section, the Commission shall establish specific regional health priorities for such grants that address— (1) addiction treatment and access to resources helping individuals in recovery; (2) workforce shortages in the healthcare industry; or (3) access to services for screening and diagnosing chronic health issues.