PUBLIC LAW 105-33—AUG. 5, 1997 111 STAT. 407 (C) (1) by redesignating subparagraph (B) as subparagraph (2) in subparagraph (C), as so redesignated— (A) by striking "greater than the target amount" and inserting "greater than 110 percent of the target amount", and (B) by striking "exceed the target amount" and inserting "exceed 110 percent of the target amount", and (3) by inserting after subparagraph (A), the following new subparagraph: "(B) are greater than the target amount but do not exceed 110 percent of the target amount, the amount of the payment with respect to those operating costs payable under part A on a per discharge basis shall equal the target amount; or". (d) REPORT.— Not later than October 1, 1999, the Secretary of Health and Human Services shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report that describes the effect of the amendments to section 1886(b)(1) of the Social Security Act (42 U.S.C. 1395ww(b)(l)), made under this section, on psy- chiatric hospitals (as defined in section 1886(d)(l)(B)(i) of such Act (42 U.S.C. 1395ww(d)(l)(B)(i)) that have approved medical residency training programs under title XVIII of such Act (42 U.S.C. 1395 et seq.)). (e) EFFECTIVE DATE.—The amendments made by subsections (a) and (c) shall apply with respect to cost reporting periods beginning on or after October 1, 1997. SEC. 4416. CHANGE IN PAYMENT AND TARGET AMOUNT FOR NEW PROVIDERS. Section 1886(b) (42 U.S.C. 1395ww(b)) is amended— (1) by adding at the end the following new paragraph: "(7)(A) Notwithstanding paragraph (1), in the case of a hospital or unit that is within a class of hospital described in subparagraph (B) which first receives payments under this section on or after October 1, 1997— "(i) for each of the first 2 cost reporting periods for which the hospital has a settled cost report, the amount of the pay- ment with respect to operating costs described in paragraph (1) under part A on a per discharge or per admission basis (as the case may be) is equal to the lesser of— "(I) the amount of operating costs for such respective period, or "(II) 110 percent of the national median of the target amount for hospitals in the same class as the hospital for cost reporting periods ending during fiscal year 1996, updated by the hospital market basket increase percentage to the fiscal year in which the hospital first received pay- ments under this section, as adjusted under subparagraph (C); and "(ii) for purposes of computing the target amount for the subsequent cost reporting period, the target amount for the preceding cost reporting period is equal to the amount determined under clause (i) for such preceding period. "(B) For purposes of this paragraph, each of the following shall be treated as a separate class of hospital: 42 USC 1395WW note. 42 USC 1395WW note.
�
