---
kind: "section"
citation: "42 C.F.R. § 412.300"
title: "42"
number: "412.300"
heading: "Scope of subpart and definition."
url: "https://uscodex.org/cfr/42/412.300"
---

# §412.300. Scope of subpart and definition.

- (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](/cfr/42/412.304.md) through [§ 412.374](/cfr/42/412.374.md) for inpatient hospital capital-related costs furnished by hospitals subject to the prospective payment system under [subpart B](/cfr/42/subpartB.md) of this part.
- (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:
  - (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.
  - (2) **A hospital that closes and subsequently reopens.**
  - (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.
  - (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.

## Notes

### Amendments

[56 FR 43449, Aug. 30, 1991, as amended at 57 FR 39827, Sept. 1, 1992]

### Source

Source: 56 FR 43449, Aug. 30, 1991, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 50 FR 12741, Mar. 29, 1985, unless otherwise noted.

### Amendments

[56 FR 43449, Aug. 30, 1991, as amended at 57 FR 39827, Sept. 1, 1992]