Medicare and Medicaid programs; statement of policy concerning approval of statewide hospital reimbursement systems demonstration projects--Health Care Financing Administration. Statement of policy.

Section 402(a)(1)(C) of the Social Security amendments of 1967, 42 U.S.C. 1395b-1, authorizes the secretary to conduct demonstration projects for the purpose of determining the effectiveness of health care reimbursement systems established under State law. This notice sets forth the general criteria under which HCFA will ordinarily consider approval of demonstration projects using a statewide hospital reimbursement system.