DESIGNATION OF CERTAIN HOSPITALS AS EYE OR EYE AND EAR HOSPITALS.

SEC. 13532. DESIGNATION OF CERTAIN HOSPITALS AS EYE OR EYE AND EAR HOSPITALS. (a) In General.— Section 1833(i) (42 U.S.C. 13951(i)) is amended— (1) in paragraph (3)(B)(ii)— (A) in the matter preceding subclause (I), by striking “the last sentence of this clause” and inserting “paragraph (4)”, and (B) by striking the last sentence; and (2) by inserting after paragraph (3) the following new paragraph: “(4) (A) In the case of a hospital that— “(i) makes application to the Secretary and demonstrates that it specializes in eye services or eye and ear services (as determined by the Secretary), “(ii) receives more than 30 percent of its total revenues from outpatient services, and “(iii) on October 1, 1987— 107 STAT. 587 “(I) was an eye specialty hospital or an eye and ear specialty hospital, or “(II) was operated as an eye or eye and ear unit (as defined in subparagraph (B)) of a general acute care hospital which, on the date of the application described in clause (i), operates less than 20 percent of the beds that the hospital operated on October 1, 1987, and has sold or otherwise disposed of a substantial portion of the hospital’s other acute care operations, the cost proportion and ASC proportion in effect under subclauses (I) and (II) of paragraph (3)(B)(ii) for cost reporting periods beginning in fiscal year 1988 shall remain in effect for cost reporting periods beginning on or after October 1, 1988, and before January 1, 1995. “(B) For purposes of this subparagraph (A)(iii)(II), the term ‘eye or eye and ear unit’ means a physically separate or distinct unit containing separate surgical suites devoted solely to eye or eye and ear services.”. (b) Effective Date.— The amendments made by subsection (a) shall apply to portions of cost reporting periods beginning on or after January 1, 1994.