42 CFR § 50.503 - Policy.

---
identifier: "/us/cfr/t42/s50.503"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 50.503 - Policy."
title_number: 42
title_name: "Public Health"
section_number: "50.503"
section_name: "Policy."
chapter_name: "PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "D"
subchapter_name: "GRANTS"
part_number: "50"
part_name: "POLICIES OF GENERAL APPLICABILITY"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 215, Public Health Service Act, 58 Stat. 690 (42 U.S.C. 216); Sec. 1006, Public Health Service Act, 84 Stat. 1507 (42 U.S.C. 300a-4), unless otherwise noted."
regulatory_source: "43 FR 52165, Nov. 8, 1978, unless otherwise noted."
cfr_part: "50"
---


# 50.503 Policy.

It is the policy of the Secretary that program funds which are utilized for the acquisition of drugs be expended in the most economical manner feasible. In furtherance of this policy, the Secretary has established, in 45 CFR part 19, a procedure for determining the Maximum Allowable Cost for drugs which are purchased with program funds.