Page:United States Statutes at Large Volume 79.djvu/362

 322

PUBLIC LAW 89-97-JULY 30, 1965

[79 STAT.

"(3) diagnostic X-ray tests, diagnostic laboratory tests, and other diagnostic tests; "(4) X-ray, radium, and radioactive isotope therapy, including materials and services of technicians; "(5) surgical dressings, and splints, casts, and other devices used for reduction of fractures and dislocations; "(6) rental of durable medical equipment, including iron lungs, oxygen tents, hospital beds, and wheelchairs used in the patient's home (including an institution used as his home); "(7) ambulance service where the use of other methods of transportation is contraindicated by the individual's condition, but only to the extent provided in regulations; "(8) prosthetic devices (other than dental) which replace all (Or part of an internal body organ, including replacement of such devices; and "(9) leg, arm, back, and neck braces, and artificial legs, arms, and eyes, including replacements if required because of a change in the patient's physical condition. No diagnostic tests performed in any laboratory which is independent of a physician's office or a hospital shall be included within paragraph (3) unless such laboratory— " (10) if situated in any State in which State or applicable local law provides for licensing of establishments of this nature, (A) is licensed pursuant to such law, or (B) is approved, by the agency of such State or locality responsible for licensing establishments of this nature, as meeting the standards establi^ed for such licensing; and "(11) meets such other conditions relating to the health and safety of individuals with respect to whom such tests are performed as the Secretary may find necessary. "Drugs and Biologicals " (t) The term 'drugs' and the term 'biologicals', except for purposes of subsection (m)(5) of this section, include only such drugs and biologicals, respectively, as are included (or approved for inclusion) in the United States Pharmacopoeia, the National Formulary, or the United States Homeopathic Pharmacopoeia, or in New Drugs or Accepted Dental Remedies (except for any drugs and biologicals unfavorably evaluated therein), or as are approved by the pharmacy and drug therapeutics committee (or equivalent committee) of the medical staff of the hospital furnishing such drugs and biologicals for use in such hospital. "Provider of Services " (u) The term 'provider of services' means a hospital, extended care facility, or home health agency. "Keasonable Cost " (v)(l) The reasonable cost of any services shall be determined in accordance with regulations establishing the method or methods to be used, and the items to be included, in determining such costs for various types or classes of institutions, agencies, and services; except that in any case to which paragraph (2) or (3) applies, the amount of the payment determined under such paragraph with respect to the services involved shall be considered the reasonable cost of such services. I n prescribing the regulations referred to in the preceding

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