# Treas. Reg. § 54.9816-3: Definitions.

Source: eCFR as of 2026-10-19 <https://www.ecfr.gov/current/title-26/section-54.9816-3>. Interprets 26 U.S.C. § 9816.

(a) The definitions in § 54.9801-2 apply to §§ 54.9816-4 through 54.9816-9, 54.9817-1, 54.9817-2, and 54.9822-1, unless otherwise specified. In addition, for purposes of §§ 54.9816-4 through 54.9816-9, 54.9817-1, 54.9817-2, and 54.9822-1, the following definition applies: 

Bundled payment arrangement means an arrangement under which— 

(1) A provider, facility, or provider of air ambulance services bills for multiple items or services furnished to a single patient under a single service code that represents multiple items or services (for example, a Diagnosis-Related Group (DRG) code); or 

(2) A plan or issuer makes an initial payment or notice of denial of payment to a provider, facility, or provider of air ambulance services under a single service code that represents multiple items or services furnished to a single patient (for example, a DRG code). 

(b) For further guidance, see 29 CFR 2590.716-3. 

[T.D. 10049, 91 FR 34047, June 4, 2026]