42 U.S.C. § 300t–13

(a) “Excess hospital capacity” defined; particular activities For the purpose of demonstrating the effectiveness of various means for reducing excesses in resources and facilities of hospitals (referred to in this section as “excess hospital capacity”), the Secretary may make grants to State Agencies designated under section 300m(b)(3) 1 1 See References in Text note below. of this title to assist such Agencies in— (1) identifying (by geographic region or by health service) excess hospital capacity, (2) developing programs to inform the public of the costs associated with excess hospital capacity, (3) developing programs to reduce excess hospital capacity in a manner which will produce the greatest savings in the cost of health care delivery, (4) developing means to overcome barriers to the reduction of excess hospital capacity, (5) in planning, evaluating, and carrying out programs to decertify health care facilities providing health services that are not appropriate, and (6) any other activity related to the reduction of excess hospital capacity. (b) Terms and conditions Grants under subsection (a) shall be made on such terms and conditions as the Secretary may prescribe.