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B-164031(5).02 1 (1976-06-25)

handle is hein.gao/gaobadoou0001 and id is 1 raw text is: DIGEST - NO CIRCUiALtU: . COMPTROLLEIt GENERAL OF THE UNII £D STATES WASHINGTON. D.C- 2048 JUN 7?1 2 5 The Honorable Lawton Chies Uited States Senate Dear Senator Chiles: This s in reply to your request for our iLses on the refusal by the Dpartiant of Health, ZduWation and Welfare (HEa) to approve the application of Mount Sinai Medical Center, Miat, Florida, 'for transfer of a $2.97 million loan uaentee and 3 percent interest subsidy from fiscal year 1971 Hill-Burton funds. The loan giuarantee had originally been approved in 1973 for the Fort Pierce MfmorTLal Hospital, Fort Pierce, Florda, which as uable to use ito apparently due to financial difficulties. Transfer of the low panrnte to Mount Sinai was re- quested, in October 1974 by the Florida Department of Health end Re- habilitative Services and approved by the HEW Regiogn IV office. Sub- sequently, however, HMW disapproved the transfer on the &rounds that the two hospitals were not located in the sme 'service area. Your letter indicates a particular interest .in vuether disapproval on this ground is statutorily required. The so-called Hill-Burton Progre, which provides Federal assistance for construction and mod risation of hospitals an .other medical facilitieu,. is authorized in 42 U.S.C. Chapter 6A.4Sauchapter IV. Part B of Subchapter IV, 42 U.S.C. i.291J-1 through 291.37 1970 & Supp. .I, t973), covers loans and loan guarantees. The origina. applications by the Mount Sinai and Fort Pierce Hospitals were made pursuant to section 291J-2(d)whvch provides that: The allotments of any State under subsec-tion (a) of this section for the fiscal year ending June 30, 1971, and the suceeding fiscal year-sall also be available to guarantee loans wLth respect to any pro- ject for modemimatm or coustraction of a nonprofit private hospital or other health facility referred to In section 291J l(a)(1) of this title, if the modern- isation or construction of such facility was not coanced earlier than January I, 1968, and if the State certifies and the Secretary finds that without such guarLnteed loa such facility could not be completed and begin to operate or could not- oUtinue to operate, but with such i guaranteed loan vould be able to do so: Provided, That th;T. subsection J, shall not apply to move than two projects in may one State. '-e3 percent interest subsidy is authorized by sec:tou 291-4.V 6 [ii;..>;:syi..~~v~bv............-. ... B-.1, on(5),0P4

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