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).'.
(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'.
