Page:United States Statutes at Large Volume 87.djvu/957

 87 STAT. ]

PUBLIC LAW 93-222-DEC. 29, 1973

No loan or loan guarantee may be made under this subsection for the operating costs of a health maintenance organization unless the Secretary determines that the organization has made all reasonable attempts to meet such costs. " (b)(1) Except as provided in paragraph (2), the principal amount of any loan made or guaranteed under subsection (a) in any fiscal year for a health maintenance organization may not exceed $1,000,000 and the aggregate amount of principal of loans made or guaranteed, or both, under this section for a health maintenance organization may not exceed $2,500,000. "(2) The cumulative total of the principal of the loans outstanding at any time which have been directly made, or with respect to which guarantees have been issued, under subsection (a) may not exceed such limitations as may be specified in appropriation Acts. "(c) Loans under this section shall be made from the fund established under section 1308(e). " (d) A loan or loan guarantee may be made under this section through the fiscal year ending June 30, 1978. "(e) Of the sums used for loans under this section in any fiscal year from the loan fund established under section 1308(e), not less than 20 per centum shall be used for loans for projects (1) for the initial operation of health maintenance organizations which the Secretary determines have not less than 66 per centum of their membership drawn from residents of nonmetropolitan areas, and (2) the applications for which meet the requirements of this title for approval.

925

Limitations.

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"APPLICATION REQUIREMENTS

"SEC. 1306. (a) No grant, contract, loan, or loan guarantee may be made under this title unless an application therefor has been submitted to, and approved by, the Secretary. "(b) The Secretary may not approve an application for a grant, contract, loan, or loan guarantee under this title unless— "(1) in the case of an application for assistance under section 1303 or 1304, such application meets the application requirements of such section and in the case of an application for a loan or loan guarantee, such application meets the requirements of section 1308; "(2) he determines that the applicant making the application would not be able to complete the project or undertaking for which the application is submitted without the assistance applied for; "(3) the application contains satisfactory specification of the existing or anticipated (A) population group or groups to be served by the proposed or existing health maintenance organization described in the application, (B) membership of such organization, (C) methods, terms, and periods of the enrollment of members of such organization, (I)^ estimated costs ner member of the health and educational services to be provided by such organization and the nature of such costs, (E) sources of professional services for such organization, and organizational arranQ;ements of such organization for providing health and educational services, (F) organizational arrangements of such organization for an ongoing quality assurance program in conformity with the requirements of section 1301(c), (G) sources of prepavment and other forms of payment for the services to be provided by such organization, (H) facilities, and additional capital investments and sources of financing therefor, available to such organization to provide the ]eve\ and scope of services proposed. (I) administrative, managerial, and financial arrangements and capabilities

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