(1) The proposed practice location must:
(a)  Be located in an area of underservice federally designated by the secretary of health and human services; or
(b)  Serve patients who reside in an area of underservice federally designated by the secretary of health and human services for flex waiver applications only.
(2)  If a new practice location is planned, additional criteria apply. New practice locations must:
(a)  Have the legal, financial, and organizational structure necessary to provide a stable practice environment, and must provide a business plan that supports this information;
(b)  Support a full-time physician practice;
(c)  Have written referral plans that describe how patients using the new practice care location will be connected to existing secondary and tertiary care if needed.