42 C.F.R. § 485.508 – Condition of participation: Compliance with Federal, state, and local laws and regulations.

(a) The REH must be in compliance with applicable Federal laws related to the health and safety of patients.
(b) The REH must be located in a state that provides for the licensing of such hospitals under state or applicable local law; and is
1. (1) Licensed in the state as an REH; or
2. (2) Approved as meeting standards for licensing established by the agency of the state or locality responsible for licensing hospitals.
(c) The REH must assure that personnel are licensed or meet other applicable standards that are required by state or local laws to provide services within the applicable scope of practice.