{"data":{"id":"us/42-cfr-412.300","jurisdiction":"us","citation":"42 CFR 412.300","heading":"Scope of subpart and definition.","body":"(a) Purpose. This subpart implements section 1886(g)(1)(A) of the Act by establishing a prospective payment system for inpatient hospital capital-related costs. Under this system, payment is made on the basis described in § 412.304 through § 412.374 for inpatient hospital capital-related costs furnished by hospitals subject to the prospective payment system under subpart B of this part.\n(b) Definition. For purposes of this subpart, a new hospital means a hospital that has operated (under previous or present ownership) for less than 2 years. The following hospitals are not new hospitals:\n(1) A hospital that builds new or replacement facilities at the same or another location even if coincidental with a change of ownership, a change in management, or a lease arrangement.\n(2) A hospital that closes and subsequently reopens.\n(3) A hospital that has been in operation for more than 2 years but has participated in the Medicare program for less than 2 years.\n(4) A hospital that changes its status from a hospital that is excluded from the prospective payment systems to a hospital that is subject to the capital prospective payment systems.","path":["Title 42—Public Health","CHAPTER IV—CENTERS FOR MEDICARE \u0026 MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES","SUBCHAPTER B—MEDICARE PROGRAM","PART 412—PROSPECTIVE PAYMENT SYSTEMS FOR INPATIENT HOSPITAL SERVICES","Subpart M—Prospective Payment System for Inpatient Hospital Capital Costs"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-42.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:11Z","sha256":"cec457a66cdaf8bfb014f1256c7c7f349ae1661f54234ea7a9bdcfd2d6b3ab57","source_id":"us-cfr","stale":true,"prev":"us/42-cfr-412.280","next":"us/42-cfr-412.302"},"notice":"GroundRules: Original legal text. Not legal advice."}