---
kind: "section"
citation: "42 U.S.C. § 1320c–7"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1320c–7"
heading: "Application of this part to certain State programs receiving Federal financial assistance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1320c-7"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter XI — General Provisions, Peer Review, and Administrative Simplification"
  - "Part B — Peer Review of Utilization and Quality of Health Care Services"
---

# §1320c–7. Application of this part to certain State programs receiving Federal financial assistance

- (a) **State plan provision that functions of quality improvement organizations may be performed by contract with such organization—** A [State](/usc/42/619.md?p=5) plan approved under subchapter XIX of this chapter may provide that the functions specified in [section 1320c–3 of this title](/usc/42/1320c–3.md) may be performed in an area by contract with a quality improvement organization that has entered into a contract with the [Secretary](/usc/42/1301.md?p=a-6) in accordance with the provisions of [section 1395y(g) of this title](/usc/42/1395y.md?p=g).
- (b) **Federal share of expenditures—** In the event a [State](/usc/42/619.md?p=5) enters into a contract in accordance with [subsection (a)](#a), the Federal share of the expenditures made to the contracting organization for its costs in the performance of its functions under the [State](/usc/42/619.md?p=5) plan shall be 75 percent (as provided in [section 1396b(a)(3)(C) of this title](/usc/42/1396b.md?p=a-3-C)).

## Source credit

(Aug. 14, 1935, ch. 531, title XI, § 1158, as added Pub. L. 97–248, title I, § 143, Sept. 3, 1982, 96 Stat. 390; amended Pub. L. 112–40, title II, § 261(a)(2)(C), Oct. 21, 2011, 125 Stat. 423.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1320c–7, act Aug. 14, 1935, ch. 531, title XI, § 1158, as added Oct. 30, 1972, Pub. L. 92–603, title II, § 249F(b), 86 Stat. 1437; amended Oct. 25, 1977, Pub. L. 95–142, §§ 5(d)(1), 22(a), 91 Stat. 1185, 1208; Dec. 5, 1980, Pub. L. 96–499, title IX, §§ 902(a)(3), 931(h), 94 Stat. 2613, 2634; Aug. 13, 1981, Pub. L. 97–35, title XXI, §§ 2113(e), 2121(g), 95 Stat. 794, 796, related to review approval as a condition of payment of claims, prior to the general revision of this part by Pub. L. 97–248.

### Amendments

2011—Subsec. (a). Pub. L. 112–40 substituted “quality improvement” for “utilization and quality control peer review” in text.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2011 Amendment

Amendment by Pub. L. 112–40 applicable to contracts entered into or renewed on or after Jan. 1, 2012, see section 261(e) of Pub. L. 112–40, set out as a note under section 1320c of this title.