When a psychologist or physical therapist is a salaried member of the staff of a hospital, their diagnostic or therapeutic services to inpatients of that hospital are covered on a reasonable cost basis in the same manner as the services of other nonphysician hospital employees. The services of a psychologist or physical therapist who is not a salaried staff member are covered if furnished by the hospital as part of the services it ordinarily furnishes under arrangements which provide for billing to be handled by the hospital.

Diagnostic services furnished to an inpatient by an independent clinical laboratory under arrangements with the hospital are reimbursable under hospital insurance.

An independent laboratory is one which is independent both of the attending or consulting physician's office and of a hospital which is participating in the program as a provider of services.

A clinical laboratory is a laboratory where micro-biological, serological, chemical, hematological, bio-physical, cytological, immunohematological or pathological examinations are performed on materials derived from the human body to provide information for diagnosis, prevention, or treatment of a disease or assessment of a medical condition.

Diagnostic services furnished a hospital inpatient under arrangements with a laboratory of another participating hospital are reimbursable on a cost basis under Part A to the hospital obtaining the services.