payment, in consideration of the value of the services they 
render. 
(c) LIMITATIONS
ON MAXIMUM NUMBER
OF PA-
TIENTS.—Maximum limits upon the number of eligible in-
dividuals with respect to whom any person may undertake 
to render services in any local health-service area may be 
fixed by the local administrative committee or local admin-
istrative officer of that health-service area only on the 
basis of a recommendation of the professional committee 
in that area that such limitation is necessary to maintain 
high standards in the quality of medical, dental, or other 
services furnished as benefits. Any such limits shall take 
account of professional needs and practices and shall pro-
vide suitable exceptions for emergency and temporary situ-
ations. 
(d) TREATMENT OF GROUPS.—The making of an 
agreement under section 206 with a group or other organi-
zation shall not operate to increase the payments to be 
made pursuant to any such agreement over the amounts 
which, in the absence of such group or organization would 
be payable for the same services pursuant to agreements 
made under section 205 directly with the person or per-
sons who furnish the services.
SEC. 210. PROFESSIONAL RIGHTS AND RESPONSIBILITIES. 
(a) TERMINATION
ARRANGEMENTS.—Any person 
who enters into an agreement under this title may termi-
nate such agreement after reasonable notice and after 
suitable arrangements are made to fulfill professional obli-
gations to eligible individuals. 
(b) FREEDOM OF PRACTICE.—Every physician, den-
tist, or nurse agreeing to render services as benefits under 
this Act shall be free to practice such professional’s profes-
sion in the locality of the professional’s own choosing, con-
sistent with the requirements of the laws of the States. 
(c) FREEDOM IN ACCEPTANCE OF PATIENTS.—Every 
physician, dentist, nurse, hospital, or other person enter-
ing into an agreement under this title shall be free to the 
extent consistent with applicable State law and customary 
professional ethics to accept or reject as a patient any in-
dividual requesting the professional’s services. 
(d) FREEDOM FROM SUPERVISION OR CONTROL.— 
No supervision or control over the details of administra-
tion or operation, or over the selection, tenure, or com-
pensation of personnel, shall be exercised under the au-
thority of this Act over any hospital which has agreed to 
furnish personal health services as benefits.
TITLE III—LOCAL 
ADMINISTRATION 
SEC. 301. DECENTRALIZATION OF ADMINISTRATION. 
(a) IN GENERAL.—In order that personal health- 
service benefits may be made available promptly and in 
a manner best adapted to local practices, conditions, and 
needs, responsibility for administration of the benefits pro-
vided under this Act in the several local health-service 
areas shall be decentralized as fully as practicable to local 
administrative committees or local administrative officers, 
acting with the advice and assistance, as provided in this 
title, of local professional committees and, in the case of 
local administrative officers, the advice and assistance of 
local area committees. 
(b) DESIGNATION OF HEALTH-SERVICE AREAS.— 
The health-service areas of a State shall be those so des-
ignated in the State plan of operations. 
SEC. 302. LOCAL ADMINISTRATIVE COMMITTEE OR OFFI-
CER. 
(a) IN GENERAL.—The local administrative agency 
for each local health-service area may, as determined by 
the State, be either— 
(1) a local administrative committee established 
in accordance with section 303, which shall act 
through a local executive officer; or
(2) a local administrative officer, who shall act 
with the advice and assistance of a local advisory 
committee established in accordance with section 
303. 
(b) ARRANGEMENTS FOR SERVICES.—The local ad-
ministrative committee or officer, with the advice and as-
sistance of such local professional committees as may from 
time to time be established, shall arrange for the fur-
nishing of personal health-service benefits to eligible indi-
viduals in the area and to that end shall— 
(1) publish, and make readily available to eligi-
ble individuals in the area, lists of the names of all 
persons who have agreed to furnish personal health 
services in the area, together with the class or class-
es of services which each has undertaken to furnish; 
(2) disseminate pertinent information con-
cerning the rights and privileges under this Act of 
eligible individuals and of persons qualified to fur-
nish personal health services as benefits; 
(3) maintain effective relationships with physi-
cians, dentists, nurses, hospitals, and other persons 
who have entered into agreements to furnish per-
sonal health services in the area, in order to facili-
tate the furnishing of such services in accordance 
with such agreements, to assure full and prompt
payment to such persons for services so furnished, 
and to enlist their full cooperation in the administra-
tion of benefits under this Act in the area; 
(4) receive and, to the extent possible in the 
local area, adjust any complaints which may be 
made concerning the administration of benefits 
under this Act in the area; 
(5) perform such other duties (including the 
making of payments to persons furnishing personal 
health services in the area) as may be assigned by 
the State agency; and 
(6) take or initiate such other administrative 
action as the committee or officer finds will best 
carry out, within the area, the provisions of this Act, 
and best effectuate its purposes. 
SEC. 303. LOCAL AREA COMMITTEES. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—A local area committee shall 
be established in each health-service area. 
(2) FUNCTIONS.—If designated by the State as 
a local administrative committee, the local area com-
mittee shall perform the functions specified in sec-
tion 302 and shall formulate policies for the admin-
istration of benefits under this Act in the area. If 
designated as an advisory committee, it shall advise
and assist in the performance of such functions and 
the formulation of such policies. The committee, 
whether administrative or advisory, shall— 
(A) participate in the solution of problems 
affecting the administration of such benefits; 
(B) promote impartiality and freedom from 
political influence in such administration; 
(C) perform related functions to the end 
that administration in the area may be respon-
sive to the wishes and needs of persons fur-
nishing and receiving benefits in the area, be 
adapted to local practices and resources; and 
(D) provide adequate and high quality per-
sonal health services to all eligible individuals. 
(b) COMPOSITION.—Each local area committee shall 
consist of not less than 8 nor more than 16 members. The 
members shall be so selected that— 
(1) a majority of the committee shall be rep-
resentative of the interests of individuals in the area 
who are eligible for benefits; and 
(2) the remaining members shall be chosen 
from the several professions, hospitals, and other or-
ganizations in the area by whom such benefits will 
be provided. 
(c) MEETINGS.—