42 C.F.R. § 124.506

Allocation of services; plan requirement

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(a)(1) A facility shall provide its uncompensated services in accordance with a plan that sets out the method by which the facility will distribute its uncompensated services among persons unable to pay. The plan must:

(i) State the type of services that will be made available;

(ii) Specify the method, if any, for distributing those services in different periods of the year;

(iii) State whether Category B or, in the case of nursing homes only, Category C persons will be provided uncompensated services, and if so, whether the services will be available without charge or at a reduced charge;

(iv) If services will be made available to Category B persons at a reduced charge, specify the method used for reducing charges, and provide that the method is applicable to all persons in Category B;

(v) With respect to nursing homes only, if services will be made available to Category C persons at a reduced charge, specify the method used for reducing charges, provided that such method may not result in greater reductions than those afforded to Category B persons, and provide that this method is applicable to all persons in Category C; and

(vi) Provide that the facility provides uncompensated services to all persons eligible under the plan who request uncompensated services.

(2) A facility must adopt an allocation plan that meets the requirements of paragraph (a) by publishing the plan in a newspaper of general circulation in its area. The plan may take effect no earlier than 60 days following the date of publication.

(b)(1) If in any fiscal year a facility fails to adopt and publish a plan in accordance with paragraph (a) of this section, it shall provide uncompensated services in accordance with the last plan it published in a newspaper of general circulation in its area.

(2) If no plan was previously published in accordance with paragraph (a)(2) of this section, the facility must provide uncompensated services without charge to all applicants in Category A and Category B, and, with respect to nursing homes, Category C, who request service in the facility. This requirement applies until the facility ceases to provide uncompensated services under § 124.508 or until an allocation plan published in accordance with paragraph (a)(2) of this section becomes effective.

(c) A facility may revise its allocation plan during the fiscal year by publishing the revised plan in a newspaper of general circulation in the area it serves. A revised plan may take effect no earlier than 60 days following the date of publication.

[52 FR 46031, Dec. 3, 1987, as amended at 60 FR 16756, Mar. 31, 1995]

Notes of Decisions

Cited in 6 cases, 1980–1991 · leading case: Uneeda Davis v. Ball Mem'l Hosp. Ass'n Patricia Roberts Harris, in Her Capacity as Sec'y of Health, Educ. & Welfare, 640 F.2d 30 (7th Cir. 1980).

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Uneeda Davis v. Ball Mem'l Hosp. Ass'n Patricia Roberts Harris, in Her Capacity as Sec'y of Health, Educ. & Welfare, 640 F.2d 30 (7th Cir. 1980). · cites it 2× “On May 18, 1979, however, the Secretary promulgated the current regulations, which inter alia set out eligibility criteria ( 42 C.F.R. § 124.506 ), prescribe the level of uncompensated services required for compliance with the assurances ( 42 C.”

White v. Moses Taylor Hosp., 763 F. Supp. 776 (M.D. Penn. 1991). “505 15 and the facility’s allocation plan as prescribed in 42 C.F.R. § 124.506 . 16 This regulation states that, if a hospital fails to develop or publish its allocation plan, it must provide uncompensated services to all those applicants in Category A and Category B.”

Flagstaff Med. Ctr., Inc. v. Sullivan, 773 F. Supp. 1325 (D. Ariz. 1991). “21 Since the regulations allow a hospital to develop its own allocation plan, see 42 C.F.R. § 124.506 (1990), thereby determining the rate at which it fulfills its Hill-Burton obligation, it makes little sense to tie a hospital’s allocation plan to whether indigent patients have…”

Newsom v. Vanderbilt Univ., 653 F.2d 1100 (6th Cir. 1981). “See 42 C.F.R. §§ 124.506 , 124.507, reprinted in 44 Fed.”

Dark v. Prince George's Cnty., 430 A.2d 629 (Md. Ct. Spec. App. 1981). “” Under the new definition ( 42 CFR § 124.506 ), a person whose individual or family income for the twelve months preceding eligibility determination did not exceed the "current poverty income guideline of the Community Services Administration” had to be treated "without charge.”

Creditors Prot. Ass'n v. Flack, 763 P.2d 756 (Or. Ct. App. 1988). · cites it 2× “Reversed and remanded for entry of judgment for defendants.”

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