REBASING FOR SOLE COMMUNITY HOSPITALS.

SEC. 122. REBASING FOR SOLE COMMUNITY HOSPITALS.(a) Rebasing Permitted.—Section 1886(b)(3) of the Social Security Act (42 U.S.C. 1395ww(b)(3)) is amended by adding at the end the following new subparagraph:“(L)(i) For cost reporting periods beginning on or after January 1, 2009, in the case of a sole community hospital there shall be substituted for the amount otherwise determined under subsection (d)(5)(D)(i) of this section, if such substitution results in a greater amount of payment under this section for the hospital, the subparagraph (L) rebased target amount.“(ii) For purposes of this subparagraph, the term ‘subparagraph (L) rebased target amount’ has the meaning given the term ‘target amount’ in subparagraph (C), except that—“(I) there shall be substituted for the base cost reporting period the 12-month cost reporting period beginning during fiscal year 2006;“(II) any reference in subparagraph (C)(i) to the ‘first cost reporting period’ described in such subparagraph is deemed a reference to the first cost reporting period beginning on or after January 1, 2009; and“(III) the applicable percentage increase shall only be applied under subparagraph (C)(iv) for discharges occurring on or after January 1, 2009.”.(b) Conforming Amendments.—Section 1886(b)(3) of the Social Security Act (42 U.S.C. 1395ww(b)(3)) is amended—(1) in subparagraph (C), in the matter preceding clause (i), by striking “subparagraph (I)” and inserting “subparagraphs (I) and (L)”; and(2) in subparagraph (I)(i), in the matter preceding subclause (I), by striking “For” and inserting “Subject to subparagraph (L), for”.