| C.__Expenditures from the fund are authorized for the | following purposes: |
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| (1)__One percent of the budget of the fund for health | promotion and injury, disease and disability prevention | programs; |
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| (2)__Payments to participating providers for health | care services rendered pursuant to section 372, | subsection 4; |
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| (3)__Payments to nonparticipating providers for health | care services rendered pursuant to section 372, | subsection 4; |
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| (4)__Payments for capital expenditures approved | pursuant to chapter 103-A; |
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| (5)__Payments to the Small Business Hardship Fund; |
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| (6)__Payments for administration of the fund and the | plan; |
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| (7)__Payments for the operations and expenditures of | the agency, the council and any advisory committees | authorized by law or appointed by the agency; and |
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| (8)__Other payments made pursuant to law. |
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| | 2.__Requirements for expenditures.__The agency shall adopt | rules setting the requirements for expenditures from the fund.__ | Rules adopted pursuant to this subsection are routine technical | rules as defined in Title 5, chapter 375, subchapter 2-A.__The | agency shall perform quarterly reviews of expenditures within the | open plan and organized delivery systems to determine whether | expenditures are within the budget of the agency.__The | requirements include: |
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| A.__For organized delivery systems, rates that are based on | capitation, that utilize risk adjustment and that are set to | reflect whether a region is underserved or has low income | and utilization rates; |
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| B.__For participating providers in the open plan, rates that | are set to reflect costs, volume and relative value of | services and that may be based on contracts and capitation; |
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| C.__For institutional providers and hospitals, rates that | are based on global budgets; and |
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