The Nation - News from March 19, 1985
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The government proposed regulations that would permit hospitals sold to profit-making companies to set up trust funds for free care of the poor instead of repaying federal construction money. Under the Hill-Burton Act, hospitals, nursing homes and other health facilities received more than $4 billion in federal construction grants since 1946, in return for which they must provide free care for the poor. The law provides that hospitals must repay some of the federal grant if they are sold to profit-making companies, or otherwise change use.
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