PUBLIC LAW 106-113—APPENDIX F 113 STAT. 1501A-363 "(iv) ADJUSTMENT IN RATE OF' INCREASE FOR HOS- PITALS WITH FTE APPROVED AMOUNT ABOVE 140 PERCENT OF LOCALITY ADJUSTED NATIONAL AVERAGE PER RESI- DENT AMOUNT.— "(I) FREEZE FOR FISCAL YICARS 2001 AND 2002. — For a cost reporting period beginning during fiscal year 2001 or fiscal year 2002, if the approved FTE resident amount for a hospital for the preceding cost reporting period exceeds 140 percent of the locality adjusted national average per resident amount computed under subparagraph (E) for that hospital and period, subject to subclause (III), the approved FTE resident amount for the period involved shall be the same as the approved FTE resident amount for the hospital for such preceding cost reporting period. "(II) 2 PERCENT DECREASE IN UPDATE FOR FISCAL YEARS 2003, 2004, A>fD 2005. —For a cost reporting period beginning during fiscal year 2003, fiscal year 2004, or fiscal year 2005, if the approved FTE resident amount for a hospital for the preceding cost reporting period exceeds 140 percent of the locality adjusted national average per resident amount computed under subparagraph (E) for that hospital and preceding period, the approved FTE resident amount for the period involved shall be updated in the manner described in subparagraph (D)(i) except that, subject to subclause (III), the consumer price index applied for a 12-month period shall be reduced (but not below zero) by 2 percentage points. "(Ill) No ADJUSTMENT BELOW 140 PERCENT.— In no case shall subclause (I) or (II) reduce an approved FTE resident amount for a hospital for a cost reporting period below 140 percent of the locality adjusted national average per resident amount computed under subparagraph (E) for such hospital and period."; (3) by redesignating subparagraph (E) as subparagraph (F); and (4) by inserting after subparagraph (D) the following new subparagraph: "(E) DETERMINATION OF LOCALITY ADJUSTED NATIONAL AVERAGE PER RESIDENT AMOUNT. —The Secretary shall determine a locality adjusted national average per resident amount with respect to a cost reporting period of a hospital beginning during a fiscal year as follows: "(i) DETERMINING HOSPITAL SINGLE PER RESIDENT AMOUNT.— The Secretary shall c;ompute for each hospital operating an approved giraduate medical education program a single per rejsident amount equal to the average (weighted by number of full-time equivalent residents, as determined under paragraph (4)) of the primary care per resident amount and the nonprimary care per resident amount computed under paragraph (2) for cost reporting periods ending during fiscal year 1997.
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