42 CFR § 403.300 - Basis and purpose.
---
identifier: "/us/cfr/t42/s403.300"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 403.300 - Basis and purpose."
title_number: 42
title_name: "Public Health"
section_number: "403.300"
section_name: "Basis and purpose."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "A"
subchapter_name: "GENERAL PROVISIONS"
part_number: "403"
part_name: "SPECIAL PROGRAMS AND PROJECTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302 and 1395hh."
cfr_part: "403"
---
# 403.300 Basis and purpose.
(a) *Basis.* This subpart implements section 1886(c) of the Act, which authorizes payment for Medicare inpatient hospital services in accordance with a State's reimbursement control system rather than under the Medicare reimbursement principles as described in CMS's regulations and instructions.
(b) *Purpose.* Contained in this subpart are—
(1) The basic requirements that a State reimbursement control system must meet in order to be approved by CMS;
(2) A description of CMS's review and evaluation procedures; and
(3) The conditions that apply if the system is approved.