ELIMINATION OF FORMULA-DRIVEN OVERPAYMENTS (FDO) FOR CERTAIN OUTPATIENT HOSPITAL SERVICES.

SEC. 4521. ELIMINATION OF FORMULA-DRIVEN OVERPAYMENTS (FDO) FOR CERTAIN OUTPATIENT HOSPITAL SERVICES. (a) Elimination of FDO for Ambulatory Surgical Center Procedures.—Section 1833(i)(3)(B)(i)(II) (42 U.S.C. 13951(i)(3)(B)(i)(II)) is amended— (1) by striking “of 80 percent”; and (2) by striking the period at the end and inserting the following: “, less the amount a provider may charge as described in clause (ii) of section 1866(a)(2)(A).”. (b) Elimination of FDO for Radiology Services and Diagnostic Procedures.—Section 1833(n)(1)(B)(i) (42 U.S.C. 13951(n)(1)(B)(i)) is amended— (1) by striking “of 80 percent”, and (2) by inserting before the period at the end the following: “, less the amount a provider may charge as described in clause (ii) of section 1866(a)(2)(A)”. (c) Effective Date.—The amendments made by this section shall apply to services furnished during portions of cost reporting periods occurring on or after October 1, 1997.