Pub. L. 101-239, tit. VI, subtit. A, pt. 1, subpt. B, sec. 6020
INTERMEDIATE SANCTIONS FOR PSYCHIATRIC HOSPITALS.
SEC. 6020. INTERMEDIATE SANCTIONS FOR PSYCHIATRIC HOSPITALS. Section 1866 of the Social Security Act (42 U.S.C. 1395cc) is amended by adding at the end the following new subsection: “(i)(1) If the Secretary determines that a psychiatric hospital which has an agreement in effect under this section no longer meets the requirements for a psychiatric hospital under this title and further finds that the hospital’s deficiencies— “(A) immediately jeopardize the health and safety of its patients, the Secretary shall terminate such agreement; or “(B) do not immediately jeopardize the health and safety of its patients, the Secretary may terminate such agreement, or provide that no payment will be made under this title with respect to any individual admitted to such hospital after the effective date of the finding, or both. “(2) If a psychiatric hospital, found to have deficiencies described in paragraph (1)(B), has not complied with the requirements of this title— “(A) within 3 months after the date the hospital is found to be out of compliance with such requirements, the Secretary shall provide that no payment will be made under this title with respect to any individual admitted to such hospital after the end of such 3-month period, or “(B) within 6 months after the date the hospital is found to be out of compliance with such requirements, no payment may be made under this title with respect to any individual in the hospital until the Secretary finds that the hospital is in compliance with the requirements of this title.”.