---
kind: "section"
citation: "42 U.S.C. § 2002"
title: "42"
title_heading: "The Public Health and Welfare"
number: "2002"
heading: "Transfer of hospitals and facilities to State or private institutions; conditions and restrictions; failure to meet requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/2002"
units:
  - "Chapter 22 — Indian Hospitals and Health Facilities"
  - "Subchapter I — Maintenance and Operation"
---

# §2002. Transfer of hospitals and facilities to State or private institutions; conditions and restrictions; failure to meet requirements


Whenever the health needs of the Indians can be better met thereby, the [Secretary](/usc/42/242q–4.md?p=2) of Health and Human Services is authorized in his discretion to enter into contracts with any [State](/usc/42/2021b.md?p=14), Territory, or political subdivision thereof, or any private [nonprofit](/usc/42/300s–3.md?p=3) [corporation](/usc/42/2297h.md?p=2), [agency](/usc/42/8262.md?p=1) or institution providing for the transfer by the United States Public Health Service of Indian [hospitals](/usc/42/300s–3.md?p=1) or health facilities, including initial operating equipment and supplies.

It shall be a condition of such transfer that all facilities transferred shall be available to meet the health needs of the Indians and that such health needs shall be given priority over those of the non-Indian population. No [hospital](/usc/42/300s–3.md?p=1) or health facility that has been constructed or maintained for a specific tribe of Indians, or for a specific group of tribes, shall be transferred by the [Secretary](/usc/42/242q–4.md?p=2) of Health and Human Services to a non-Indian entity or organization under this subchapter unless such action has been approved by the governing body of the tribe, or by the governing bodies of a majority of the tribes, for which such [hospital](/usc/42/300s–3.md?p=1) or health facility has been constructed or maintained: Provided, That if, following such transfer by the United States Public Health Service, the [Secretary](/usc/42/242q–4.md?p=2) of Health and Human Services finds the [hospital](/usc/42/300s–3.md?p=1) or health facility transferred under this section is not thereafter serving the need of the Indians, the [Secretary](/usc/42/242q–4.md?p=2) of Health and Human Services shall notify those charged with management thereof, setting forth needed improvements, and in the event such improvements are not made within a time to be specified, shall immediately assume management and operation of such [hospital](/usc/42/300s–3.md?p=1) or health facility.


## Source credit

(Aug. 5, 1954, ch. 658, § 2, 68 Stat. 674; Pub. L. 96–88, title V, § 509(b), Oct. 17, 1979, 93 Stat. 695.)

## Notes

### Statutory Notes and Related Subsidiaries

### Change of Name

“Secretary of Health and Human Services” substituted in text for “Secretary of Health, Education, and Welfare” pursuant to section 509(b) of Pub. L. 96–88, which is classified to section 3508(b) of Title 20, Education.

### Effective Date

Section effective July 1, 1959, see section 6 of act Aug. 5, 1954, set out as a note under section 2001 of this title.

### Executive Documents

### Transfer of Functions

Functions of Public Health Service, Surgeon General of Public Health Service, and all other officers and employees of Public Health Service, and functions of all agencies of or in Public Health Service transferred to Secretary of Health, Education and Welfare by Reorg. Plan No. 3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, set out as a note under section 202 of this title.