§ 1320c-7. Application of this part to certain State programs receiving Federal financial assistance
(a)
State plan provision that functions of peer review organizations may be performed by contract with such organization
A State plan approved under subchapter XIX of this chapter may provide that the functions specified in section
1320c–3 of this title may be performed in an area by contract with a utilization and quality control peer review organization that has entered into a contract with the Secretary in accordance with the provisions of section
1395y
(g) of this title.
(b)
Federal share of expenditures
In the event a State enters into a contract in accordance with subsection (a) of this section, the Federal share of the expenditures made to the contracting organization for its costs in the performance of its functions under the State plan shall be 75 percent (as provided in section
1396b
(a)(3)(C) of this title).