(Generally, a subsection (d) hospital is an acute care hospital, particularly one that receives payments under Medicare's inpatient prospective payment system [IPPS], when providing covered inpatient services to eligible beneficiaries.)

Specifies as the kind of subsection (d) hospital to which this payment formula applies any hospital that: (1) first received a payment in 1986 which has an average inpatient length of stay of more than 20 days, and (2) has 80% or more of its annual Medicare inpatient discharges with a principal diagnosis that reflects a finding of neoplastic disease in the 12-month cost reporting period ending in FY1997.

Requires payments for inpatient operating costs, in the case of such hospitals, for cost reporting periods beginning on or after January 1, 2014, to be based upon the established target amount per discharge, increased for each succeeding cost reporting period by the market basket percentage increase.