ENHANCED DISPROPORTIONATE SHARE HOSPITAL (DSH) TREATMENT FOR RURAL HOSPITALS AND URBAN HOSPITALS WITH FEWER THAN 100 BEDS.

SEC. 402. ENHANCED DISPROPORTIONATE SHARE HOSPITAL (DSH) TREATMENT FOR RURAL HOSPITALS AND URBAN HOSPITALS WITH FEWER THAN 100 BEDS.(a) Doubling the Cap.—Section 1886(d)(5)(F) (42 U.S.C. 1395ww(d)(5)(F)) is amended by adding at the end the following new clause:“(xiv)(I) In the case of discharges occurring on or after April 1, 2004, subject to subclause (II), there shall be substituted for the disproportionate share adjustment percentage otherwise determined under clause (iv) (other than subclause (I)) or under clause (viii), (x), (xi), (xii), or (xiii), the disproportionate share adjustment percentage determined under clause (vii) (relating to large, urban hospitals).“(II) Under subclause (I), the disproportionate share adjustment percentage shall not exceed 12 percent for a hospital that is not classified as a rural referral center under subparagraph (C).”. 117 STAT. 2265(b) Conforming Amendments.—Section 1886(d) (42 U.S.C. 1395ww(d)) is amended—(1) in paragraph (5)(F)—(A) in each of subclauses (II), (III), (IV), (V), and (VI) of clause (iv), by inserting “subject to clause (xiv) and” before “for discharges occurring”;(B) in clause (viii), by striking “The formula” and inserting “Subject to clause (xiv), the formula”; and(C) in each of clauses (x), (xi), (xii), and (xiii), by striking “For purposes” and inserting “Subject to clause (xiv), for purposes”; and(2) in paragraph (2)(C)(iv)—(A) by striking “or” before “the enactment of section 303”; and(B) by inserting before the period at the end the following: “, or the enactment of section 402(a)(1) of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003”.