ELIMINATION OF EXEMPTIONS FOR CERTAIN HOSPITALS.

SEC. 4419. ELIMINATION OF EXEMPTIONS FOR CERTAIN HOSPITALS. (a) Reduction of Exemptions.— (1) In general.—Section 1886(b)(4)(A)(i) (42 U.S.C. 1395ww(b)(4)(A)(i)) is amended in the first sentence by striking “The Secretary shall provide for an exemption from, or an exception and adjustment to,” and inserting “The Secretary shall provide for an exception and adjustment to (and in the case of a hospital or unit described in subsection (d)(1)(B)(iii), may provide an exemption from)”. (2) Effective date.—The amendment made by paragraph (1) shall apply to hospitals or units that first qualify as a hospital or unit described in section 1886(d)(1)(B) (42 U.S.C. 1395ww(d)(1)(B)) for cost reporting periods beginning on or after October 1, 1997. (b) Report on Exceptions.—The Secretary of Health and Human Services shall publish annually in the Federal Register a report describing the total amount of payments made to hospitals by reason of section 1886(b)(4) of the Social Security Act (42 U.S.C. .111 STAT. 4101395ww(b)(4)), as amended by subsection (a), ending during the previous fiscal year