A psychiatric hospital is an institution which is primarily engaged in providing by
      or under the supervision of a physician, psychiatric services for the diagnosis and
      treatment of mentally ill persons. To be eligible for participation in the program
      as a psychiatric hospital it must be accredited by the JCAH, have in effect a utilization
      review plan, and comply with additional staffing and medical record requirements necessary
      to carry out an active program of treatment and intensive care.