25 USC 1661 - Establishment of Indian Health Service as an agency of Public Health Service

(a) Establishment 
In order to more effectively and efficiently carry out the responsibilities, authorities, and functions of the United States to provide health care services to Indians and Indian tribes, as are or may be on and after November 23, 1988, provided by Federal statute or treaties, there is established within the Public Health Service of the Department of Health and Human Services the Indian Health Service. The Indian Health Service shall be administered by a Director, who shall be appointed by the President, by and with the advice and consent of the Senate. The Director of the Indian Health Service shall report to the Secretary through the Assistant Secretary for Health of the Department of Health and Human Services. Effective with respect to an individual appointed by the President, by and with the advice and consent of the Senate, after January 1, 1993, the term of service of the Director shall be 4 years. A Director may serve more than 1 term.
(b) Agency status 
The Indian Health Service shall be an agency within the Public Health Service of the Department of Health and Human Services, and shall not be an office, component, or unit of any other agency of the Department.
(c) Duties 
The Secretary shall carry out through the Director of the Indian Health Service
(1) all functions which were, on the day before November 23, 1988, carried out by or under the direction of the individual serving as Director of the Indian Health Service on such day;
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(2) all functions of the Secretary relating to the maintenance and operation of hospital and health facilities for Indians and the planning for, and provision and utilization of, health services for Indians;
(3) all health programs under which health care is provided to Indians based upon their status as Indians which are administered by the Secretary, including (but not limited to) programs under
(A) this chapter;
(B) section 13 of this title;
(C) the Act of August 5, 1954 (42 U.S.C. 2001, et seq.);
(D) the Act of August 16, 1957 (42 U.S.C. 2005 et seq.); and
(E) the Indian Self-Determination Act (25 U.S.C. 450f, et seq.); and
(4) all scholarship and loan functions carried out under subchapter I of this chapter.
(d) Authority of Secretary 

(1) The Secretary, acting through the Director of the Indian Health Service, shall have the authority
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(A) except to the extent provided in paragraph (2), to appoint and compensate employees for the Service in accordance with title 5;
(B) to enter into contracts for the procurement of goods and services to carry out the functions of the Service; and
(C) to manage, expend, and obligate all funds appropriated for the Service.
(2) Notwithstanding any other law, the provisions of section 472 of this title shall apply to all personnel actions taken with respect to new positions created within the Service as a result of its establishment under subsection (a) of this section.