Sec. 1640. development grants for area health services development funds

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## Sec. 1640 development grants for area health services development funds **[**300t**]** ###

(a)The Secretary shall make in each fiscal year a grant to each health systems agency— ####

(1)with which there is in effect a designation agreement under section 1515(c), ####

(2)which has in effect an HSP and AIP reviewed by the Statewide Health Coordinating Council, and ####

(3)which, as determined under the review made under section 1535(c), is organized and operated in the manner prescribed by section 1512(b) and is performing its functions under section 1513 in a manner satisfactory to the Secretary, to enable the agency to establish and maintain an Area Health Services Development Fund from which it may make grants and enter into contracts in accordance with section 1513(c)(3). ###

(b)####

(1)Except as provided in paragraph (2), the amount of any grant under subsection

(a)shall be determined by the Secretary after taking into consideration the population of the health service area for which the health systems agency is designated, the average family income of the area, and the supply of health services in the area. ####

(2)The amount of any grant under subsection

(a)to a health systems agency for any fiscal year may not exceed the product of $1 and the population of the health service area for which such agency is designated. ###

(c)No grant may be made under subsection

(a)unless an application therefor has been submitted to, and approved by, the Secretary. Such an application shall be submitted in such form and manner and contain such information as the Secretary may require. ###

(d)For the purpose of making payments pursuant to grants under subsection (a), there are authorized to be appropriated $25,000,000 for the fiscal year ending June 30, 1975, $75,000,000 for the fiscal year ending June 30, 1976, $120,000,000 each for the fiscal years ending September 30, 1977, and September 30, 1978, $20,000,000 for the fiscal year ending September 30, 1981, and $30,000,000 for the fiscal year ending September 30, 1982. ### Part E Program To Assist and Encourage the Voluntary Discontinuance of Unneeded Hospital Services and the Conversion of Unneeded Hospital Services to Other Health Services Needed by the Community