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To amend the Public Health Service Act to assure the development of a national
health policy and of effective State and area health planning and resources
development programs, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SHORT TITLE; TABLE OF CONTENTS

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"PART D-GENERAL I'ROVISIONS

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88 STAT. 2226

TABLE OF CONTENTS—Continued

"TITLE XVI-HEALTH RESOURCES DEVELOPMENT-Continued

"Sec. 1610. Allotments.

"Part B-ALLOTMENTS

"Sec. 1611. Payments from allotments.

"Sec. 1612. Withholding of payments and other compliance actions.
"Sec. 1613. Authorization of appropriations.

"PART C-LOANS AND LOAN Guarantees

"Sec. 1620. Authority for loans and loan guarantees.

"Sec. 1621. Allocation among States.

"Sec. 1622. General provisions relating to loan guarantees and loans.

"PART D-PROJECT GRANTS

"Sec. 1625. Project grants.

42 USC 300k.

"PART E-GENERAL PROVISIONS

"Sec. 1630. Judicial review.

"Sec. 1631. Recovery.

"Sec. 1632. State control of operations.

"Sec. 1633. Definitions.

"Sec. 1634. Financial statements; records and audit.

"Sec. 1635. Technical assistance.

"PART F-AREA HEALTH SERVICES DEVELOPMENT FUNDS

"Sec. 1640. Area health services development funds."

Sec. 5. Miscellaneous and transitional provisions.

Sec. 6. Advisory committees.

Sec. 7. Agency reports.

Sec. 8. Technical amendment.

FINDINGS AND PURPOSE

SEC. 2. (a) The Congress makes the following findings:

(1) The achievement of equal access to quality health care at a reasonable cost is a priority of the Federal Government.

(2) The massive infusion of Federal funds into the existing health care system has contributed to inflationary increases in the cost of health care and failed to produce an adequate supply or distribution of health resources, and consequently has not made possible equal access for everyone to such resources.

(3) The many and increasing responses to these problems by the public sector (Federal, State, and local) and the private sector have not resulted in a comprehensive, rational approach to the present

(A) lack of uniformly effective methods of delivering health care;

(B) maldistribution of health care facilities and manpower; and

(C) increasing cost of health care.

(4) Increases in the cost of health care, particularly of hospital stays, have been uncontrollable and inflationary, and there are presently inadequate incentives for the use of appropriate alternative levels of health care, and for the substitution of ambulatory and intermediate care for inpatient hospital care.

(5) Since the health care provider is one of the most important participants in any health care delivery system, health policy must address the legitimate needs and concerns of the provider if it is to achieve meaningful results; and, thus, it is imperative

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