MEDICARE-DEPENDENT, SMALL RURAL HOSPITAL PAYMENT EXTENSION.

SEC. 4204. MEDICARE-DEPENDENT, SMALL RURAL HOSPITAL PAYMENT EXTENSION. (a) Special Treatment Extended.— (1) Payment methodology.—Section 1886(d)(5)(G) (42 U.S.C. 1395ww(d)(5)(G)) is amended— (A) in clause (i), by striking “October 1, 1994,” and inserting “October 1, 1994, or beginning on or after October 1, 1997, and before October 1, 2001,”; and (B) in clause (ii)(II), by striking “October 1, 1994,” and inserting “October 1, 1994, or beginning on or after October 1, 1997, and before October 1, 2001,”. (2) Extension of target amount.—Section 1886(b)(3)(D) (42 U.S.C. 1395ww(b)(3)(D)) id amended— (A) in the matter preceding clause (i), by striking “September 30, 1994,” and inserting “September 30, 1994, and for cost reporting periods beginning on or after October 1, 1997, and before October 1, 2001,”; (B) in clause (ii), by striking “and” at the end; (C) in clause (iii), by striking the period at the end and inserting “, and”; and111 STAT. 376 (D) by adding after clause (iii) the following new clause: “(iv) with respect to discharges occurring during fiscal year 1998 through fiscal year 2000, the target amount for the preceding year increased by the applicable percentage increase under subparagraph (B)(iv).”. (3) Permitting hospitals to decline reclassification.—Section 13501(e)(2) of OBRA–93 (42 U.S.C. 1395ww note) is amended by striking “or fiscal year 1994” and inserting fiscal year “, 1994, fiscal year 1998, fiscal year 1999, or fiscal year 2000”. (b) Effective Date.—The amendments made by subsection (a) shall apply with respect to discharges occurring on or after October 1, 1997.