COSTS OF NURSING AND ALLIED HEALTH EDUCATION.

SEC. 6205. COSTS OF NURSING AND ALLIED HEALTH EDUCATION. (a) Recognition of Costs of Certain Hospital-Based Nursing Schools.— (1) In general.—(A) The reasonable costs incurred by a hospital in training students of a hospital-based nursing school shall be allowable as reasonable costs under title XVIII of the Social Security Act and reimbursed under such title on the same basis as if they were allowable direct costs of a hospital-operated educational program (other than an approved graduate medical education program) if, before June 15, 1989, and thereafter, the hospital demonstrates that for each year, it incurs at least 50 percent of the costs of training nursing students at such school, the nursing school and the hospital share some common board members, and all instruction is provided at the hospital or, if in another building, a building on the immediate grounds of the hospital. (B) Section 8411(b) of the Technical and Miscellaneous Revenue Act of 1988 is amended by striking “1989, 1990, and” and inserting “1986 through”. (2) Effective date.—Paragraph (1)(A) shall apply with respect to cost reporting periods beginning on or after the date of the enactment of this Act and on or before the date on which the Secretary issues regulations pursuant to subsection (b)(2)(A). (b) Delay in Recoupment of Certain Nursing and Allied Education Costs.— (1) The Secretary of Health and Human Services (in this subsection referred to as the “Secretary”) shall not, before October 1, 1990, recoup from, or otherwise reduce or adjust payments under title XVIII of the Social Security Act to, hospitals because of alleged overpayments to such hospitals under such title due to a determination that costs which were reported by a hospital on its medicare cost reports relating to approved nursing and allied health education programs were allowable costs and are included in the definition of “operating costs of inpatient hospital services” pursuant to section 1886(a)(4) of such Act, so that no pass-through of such costs was permitted under that section. (2)(A) Before July 1, 1990, the Secretary shall issue regulations respecting payment of costs described in paragraph (1). (B) In issuing such regulations— (i) the Secretary shall allow a comment period of not less than 60 days, (ii) the Secretary shall consult with the Prospective Payment Assessment Commission, and 103 STAT. 2244 (iii) any final rule shall not be effective prior to October 1, 1990, or 30 days after publication of the final rule in the Federal Register, whichever is later. (C) Such regulations shall specify— (i) the relationship required between an approved nursing or allied health education program and a hospital for the program’s costs to be attributed to the hospital; (ii) the types of costs related to nursing or allied health education programs that are allowable by medicare; (iii) the distinction between costs of approved educational activities as recognized under section 1886(a)(3) of the Social Security Act and educational costs treated as operating costs of inpatient hospital services; and (iv) the treatment of other funding sources for the program.