Grants for discontinuance and conversion

42 U.S. Code § 300t-12. Grants for discontinuance and conversion

(a) Terms and conditions; determination of amount; authorized uses
(1)
A grant to a hospital under the program shall be 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.
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