113 STAT. 1501A-372 PUBLIC LAW 106-113—APPENDIX F SEC. 404. 5 -YEAR EXTENSION OF MEDICARE DEPENDENT HOSPITAL (MDH) PROGRAM. (a) EXTENSION OF PAYMENT METHODOLOGY. —Section 1886(d)(5)(G) (42 U.S.C. 1395ww(d)(5)(G)) is amended— (1) in clause (i), by striking "and before October 1, 2001," and inserting "and before October 1, 2006,"; and (2) in clause (ii)(II), by striking "and before October 1, 2001," and inserting "and before October 1, 2006,". (b) CONFORMING AMENDMENTS.— (1) EXTENSION OF TARGET AMOUNT.—Section 1886(b)(3)(D) (42 U.S.C. 1395ww(b)(3)(D)) is amended— (A) in the matter preceding clause (i), by striking "and before October 1, 2001," and inserting "and before October 1, 2006,"; and (B) in clause (iv), by striking "during fiscal year 1998 through fiscal year 2000" and inserting "during fiscal year 1998 through fiscal year 2005". (2) PERMITTING HOSPITALS TO DECLINE RECLASSIFICATION.— Section 13501(e)(2) of Omnibus Budget Reconciliation Act of 1993 (42 U.S.C. 1395WW note), as amended by section 4204(a)(3) of BBA, is amended by striking "or fiscal year 2000" and inserting "or fiscal year 2000 through fiscal year 2005". SEC. 405. REBASING FOR CERTAIN SOLE COMMUNITY HOSPITALS. Section 1886(b)(3) (42 U.S.C. 1395ww(b)(3)) is amended— (1) in subparagraph (C), by inserting "subject to subparagraph (I)," before "the term 'target amount' means"; and (2) by adding at the end the following new subparagraph: "(I)(i) For cost reporting periods beginning on or after October 1, 2000, in the case of a sole community hospital that for its cost reporting period beginning during 1999 is paid on the basis of the target amount applicable to the hospital under subparagraph (C) and that elects (in a form and manner determined by the Secretary) this subparagraph to apply to the hospital, there shall be substituted for such target amount— "(I) with respect to discharges occurring in fiscal year 2001, 75 percent of the target amount otherwise applicable to the hospital under subparagraph (C) (referred to in this clause as the 'subparagraph (C) target amount') and 25 percent of the rebased target amount (as defined in clause (ii)); "(II) with respect to discharges occurring in fiscal year 2002, 50 percent of the subparagraph (C) target amount and 50 percent of the rebased target amount; "(III) with respect to discharges occurring in fiscal year 2003, 25 percent of the subparagraph (C) target amount and 75 percent of the rebased target amount; and "(IV) with respect to discharges occurring after fiscal year 2003, 100 percent of the rebased target amount. "(ii) For purposes of this subparagraph, the 'rebased target amount' has the meaning given the term 'target amount' in subparagraph (C) except that— "(I) there shall be substituted for the base cost reporting period the 12-month cost reporting period beginning during fiscal year 1996; "(II) any reference in subparagraph (C)(i) to the 'first cost reporting period' described in such subparagraph is deemed
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