PERMITTING PAYMENT TO NONHOSPITAL PROVIDERS.

SEC. 4625. PERMITTING PAYMENT TO NONHOSPITAL PROVIDERS. (a) In General.—Section 1886 (42 U.S.C. 1395ww), as amended by section 4421(a), is amended by adding at the end the following: “(k) Payment to Nonhospital Providers.— “(1) In general.—For cost reporting periods beginning on or after October 1, 1997, the Secretary may establish rules for payment to qualified nonhospital providers for their direct costs of medical education, if those costs are incurred in the operation of an approved medical residency training program described in subsection (h). Such rules shall specify the amounts, form, and manner in which such payments will be made and the portion of such payments that will be made from each of the trust funds under this title. “(2) Qualified nonhospital providers.—For purposes of this subsection, the term ‘qualified nonhospital providers’ means— “(A) a Federally qualified health center, as defined in section 1861(aa)(4); “(B) a rural health clinic, as defined in section 1861(aa)(2); “(C) Medicare+Choice organizations; and “(D) such other providers (other than hospitals) as the Secretary determines to be appropriate.”. (b) Prohibition on Double Payments.—Section 1886(h)(3)(B) (42 U.S.C. 1395ww(h)(3)(B)) is amended by adding at the end the following: “The Secretary shall reduce the aggregate approved amount to the extent payment is made under subsection (k) for residents included in the hospital’s count of full-time equivalent residents.”.111 STAT. 480