Ill STAT. 482 PUBLIC LAW 105-33 —AUG. 5, 1997 "(I) the base number of residents for the entity is less than 750 or the entity is described in subparagraph (C)(ii); and "(II) the entity represents in its appHcation under subparagraph (B) that it will increase the number of full-time equivalent residents in primary care by at least 20 percent (from such number included in the base number of residents) by not later than the 5th residency training year in which the application under subparagraph (B) is effective. If a qualifying entity fails to comply with the representation described in subclause (II) by the end of such 5th residency training year, the entity shall be subject to repayment of all amounts paid under this paragraph, in accordance with procedures established to carry out subparagraph (F), " (vi) BASE NUMBER OF RESIDENTS DEFINED. —For purposes of this paragraph, the term TDase number of residents' means, with respect to a qualifying entity (or its participating hospitals) operating approved medical residency training programs, the number of full-time equivalent residents in such programs (before application of weighting factors) of the entity as of the most recent residency training year ending before June 30, 1997, or, if less, for any subsequent residency training year that ends before the date the entity makes application under this paragraph. "(E) APPLICABLE HOLD HARMLESS PERCENTAGE.— For purposes of subparagraph (A), the 'applicable hold harmless percentage' for the— "(i) first and second residency training years in which the reduction plan is in effect, 100 percent, "(ii) third such year, 75 percent, "(iii) fourth such year, 50 percent, and "(iv) fifth such year, 25 percent. "(F) PENALTY FOR NONCOMPLIANCE.— "(i) IN GENERAL.— No payment may be made under this paragraph to a hospital for a residency training year if the hospital has failed to reduce the number of full-time equivalent residents (in the manner required under subparagraph (D)) to the number agreed to by the Secretary and the qualifying entity in approving the application under this paragraph with respect to such year. " (ii) INCREASE IN NUMBER OF RESIDENTS IN SUBSE- QUENT YEARS. —I f payments are made under this paragraph to a hospital, and if the hospital increases the number of full-time equivalent residents above the number of such residents permitted under the reduction plan as of the completion of the plan, then, as specified by the Secretary, the entity is liable for repay- ment to the Secretary of the total amounts paid under this paragraph to the entity.
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