[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2157 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2157
To address health care disparities in rural areas by amending title
XVIII of the Social Security Act, the Public Health Service Act, and
the Internal Revenue Code of 1986, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 13, 2001
Mr. Moran of Kansas (for himself, Mr. McIntyre, Mr. Bereuter, Mr.
Stenholm, Mr. Brady of Texas, Mr. Tanner, Mr. Nussle, Mr. Hilliard, Mr.
Pomeroy, Mr. Stupak, Mrs. Thurman, Mr. Bass, Mr. Nethercutt, Mr.
Wicker, Mrs. Emerson, Mr. Kind, Mr. Peterson of Pennsylvania, Mr.
Sandlin, Mr. Thune, Mr. Sweeney, Mr. Carson of Oklahoma, Mr. Oberstar,
Mr. Rahall, Mr. Skelton, Mr. Watkins of Oklahoma, Mr. Gordon, Mr.
Cramer, Mr. Ehlers, Mr. Holden, Mr. Lewis of Kentucky, Mr. McHugh, Mr.
Foley, Mr. Hilleary, Mr. Jones of North Carolina, Mr. Boswell, Mr.
Goode, Ms. Hooley of Oregon, Mr. Pickering, Mr. Shimkus, Mr. Baird, Mr.
Hayes, Mr. Phelps, Mr. Terry, Mr. Kennedy of Minnesota, Mr. Putnam, and
Mr. Ross) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Energy
and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To address health care disparities in rural areas by amending title
XVIII of the Social Security Act, the Public Health Service Act, and
the Internal Revenue Code of 1986, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES TO BIPA; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Rural Health Care
Improvement Act of 2001''.
(b) References to BIPA.--In this Act, the term ``BIPA'' means the
Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act
of 2000 (114 Stat. 2763A-463 et seq.), as enacted into law by section
1(a)(6) of Public Law 106-554.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--RURAL MEDICARE REFORMS
Subtitle A--Rural Hospital Improvements
Sec. 101. Fairness in the disproportionate share hospital (DSH)
adjustment for rural hospitals.
Sec. 102. Establishing a single standardized amount under inpatient
hospital prospective payment system.
Sec. 103. Hospital geographic reclassification for labor costs for all
items and services reimbursed under
prospective payment systems.
Sec. 104. Treatment of certain physician pathology services.
Subtitle B--Rural Home Health Improvements
Sec. 111. Elimination of 15 percent reduction in payment rates under
the prospective payment system for home
health services.
Sec. 112. Permanent increase for home health services furnished in a
rural area.
Subtitle C--Rural Health Clinic Improvements
Sec. 121. Improvement in rural health clinic reimbursement.
Sec. 122. Exclusion of certain rural health clinic services and
Federally qualified health center services
from the prospective payment system for
covered skilled nursing facility services.
TITLE II--RURAL GRANT AND LOAN PROGRAMS FOR INFRASTRUCTURE, TECHNOLOGY,
AND TELEHEALTH
Sec. 201. Capital infrastructure revolving loan program.
Sec. 202. High technology acquisition grant and loan program.
Sec. 203. Establishment of telehealth resource centers.
TITLE III--NATIONAL HEALTH SERVICE CORPS TAX RELIEF
Sec. 301. Exclusion of certain amounts received under the National
Health Service Corps Loan Repayment
Program.
TITLE I--RURAL MEDICARE REFORMS
Subtitle A--Rural Hospital Improvements
SEC. 101. FAIRNESS IN THE DISPROPORTIONATE SHARE HOSPITAL (DSH)
ADJUSTMENT FOR RURAL HOSPITALS.
(a) Equalizing DSH Payment Amounts.--
(1) In general.--Section 1886(d)(5)(F)(vii) of the Social
Security Act (42 U.S.C. 1395ww(d)(5)(F)(vii)) is amended by
inserting ``, and, after October 1, 2001, for any other
hospital described in clause (iv),'' after ``clause (iv)(I)''.
(2) Conforming amendments.--Section 1886(d)(5)(F) of such
Act (42 U.S.C. 1395ww(d)(5)(F)), as amended by section 211 of
BIPA (114 Stat. 2763A-483), is amended--
(A) in clause (iv)--
(i) in subclause (II), by inserting ``or,
for discharges occurring on or after October 1,
2001, is equal to the percent determined in
accordance with the applicable formula
described in clause (vii)'' after ``clause
(xiii)'';
(ii) in subclause (III), by inserting ``or,
for discharges occurring on or after October 1,
2001, is equal to the percent determined in
accordance with the applicable formula
described in clause (vii)'' after ``clause
(xii)'';
(iii) in subclause (IV), by inserting ``or,
for discharges occurring on or after October 1,
2001, is equal to the percent determined in
accordance with the applicable formula
described in clause (vii)'' after ``clause (x)
or (xi)'';
(iv) in subclause (V), by inserting ``or,
for discharges occurring on or after October 1,
2001, is equal to the percent determined in
accordance with the applicable formula
described in clause (vii)'' after ``clause
(xi)'' ; and
(v) in subclause (VI), by inserting ``or,
for discharges occurring on or after October 1,
2001, is equal to the percent determined in
accordance with the applicable formula
described in clause (vii)'' after ``clause
(x)'';
(B) in clause (viii), by striking ``The formula''
and inserting ``For discharges occurring before October
1, 2001, the formula''; and
(C) in each of clauses (x), (xi), (xii), and
(xiii), by striking ``For purposes'' and inserting
``With respect to discharges occurring before October
1, 2001, for purposes''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to discharges occurring on or after October 1, 2001.
SEC. 102. ESTABLISHING A SINGLE STANDARDIZED AMOUNT UNDER INPATIENT
HOSPITAL PROSPECTIVE PAYMENT SYSTEM.
(a) In General.--Section 1886(d)(3)(A) of the Social Security Act
(42 U.S.C. 1395ww(d)(3)(A)) is amended--
(1) in clause (iv), by inserting ``and ending on or before
September 30, 2001,'' after ``October 1, 1995,''; and
(2) by redesignating clauses (v) and (vi) as clauses (vii)
and (viii), respectively, and inserting after clause (iv) the
following new clauses:
``(v) For discharges occurring in the fiscal year beginning
on October 1, 2001, the average standardized amount for
hospitals located in areas other than a large urban area shall
be equal to the average standardized amount for hospitals
located in a large urban area.
``(vi) For discharges occurring in a fiscal year beginning
on or after October 1, 2002, the Secretary shall compute an
average standardized amount for hospitals located in all areas
within the United States equal to the average standardized
amount computed under clause (v) or this clause for the
previous fiscal year increased by the applicable percentage
increase under subsection (b)(3)(B)(i) for the fiscal year
involved.''.
(b) Conforming Amendments.--
(1) Update factor.--Section 1886(b)(3)(B)(i)(XVII) of the
Social Security Act (42 U.S.C. 1395ww(b)(3)(B)(i)(XVII)) is
amended by striking ``for hospitals in all areas,'' and
inserting ``for hospitals located in a large urban area,''.
(2) Computing drg-specific rates.--
(A) In general.--Section 1886(d)(3)(D) of such Act
(42 U.S.C. 1395ww(d)(3)(D)) is amended--
(i) in the heading by striking ``in
different areas'';
(ii) in the matter preceding clause (i)--
(I) by inserting ``for fiscal years
before fiscal year 1997'' before ``a
regional DRG prospective payment rate
for each region,''; and
(II) by striking ``each of which
is'';
(iii) in clause (i)--
(I) by inserting ``for fiscal years
before fiscal year 2002,'' after
``(i)''; and
(II) by striking ``and'' at the
end;
(iv) in clause (ii)--
(I) by inserting ``for fiscal years
before fiscal year 2002,'' after
``(ii)''; and
(II) by striking the period at the
end and inserting ``; and''; and
(v) by adding at the end the following new
clause:
``(iii) for a fiscal year beginning after fiscal
year 2001, for hospitals located in all areas, to the
product of--
``(I) the applicable average standardized
amount (computed under subparagraph (A)),
reduced under subparagraph (B), and adjusted or
reduced under subparagraph (C) for the fiscal
year; and
``(II) the weighting factor (determined
under paragraph (4)(B)) for that diagnosis-
related group.''.
(B) Technical conforming sunset.--Section
1886(d)(3) of such Act (42 U.S.C. 1395ww(d)(3)) is
amended in the matter preceding subparagraph (A) by
inserting ``for fiscal years before fiscal year 1997''
before ``a regional DRG prospective payment rate''.
SEC. 103. HOSPITAL GEOGRAPHIC RECLASSIFICATION FOR LABOR COSTS FOR ALL
ITEMS AND SERVICES REIMBURSED UNDER PROSPECTIVE PAYMENT
SYSTEMS.
Section 1886(d)(10)(D) of the Social Security Act (42 U.S.C.
1395ww(d)(10)(D)), as amended by section 304(a) of BIPA (114 Stat.
2763A-494), is amended by adding at the end the following new clause:
``(vii)(I) Any decision of the Board to reclassify a subsection (d)
hospital for purposes of the adjustment factor described in
subparagraph (C)(i)(II) for fiscal year 2001 or any fiscal year
thereafter shall apply for purposes of adjusting payments for
variations in costs that are attributable to wages and wage-related
costs for PPS-reimbursed items and services.
``(II) For purposes of subclause (I), the term `PPS-reimbursed
items and services' means, for the fiscal year for which the Board has
made a decision described in such subclause, each item and service for
which payment is made under this title on a prospective basis and
adjusted for variations in costs that are attributable to wages or
wage-related costs that is furnished by the hospital to which such
decision applies, or by a provider-based entity or department of that
hospital (as determined by the Secretary).''.
SEC. 104. TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES.
(a) In General.--Section 1848(i) of the Social Security Act (42
U.S.C. 1395w-4(i)) is amended by adding at the end the following new
paragraph:
``(4) Treatment of certain physician pathology services.--
``(A) In general.--With respect to services
furnished on or after January 1, 2001, if an
independent laboratory furnishes the technical
component of a physician pathology service to a fee-
for-service medicare beneficiary who is an inpatient or
outpatient of a covered hospital, the Secretary shall
treat such component as a service for which payment
shall be made to the laboratory under this section and
not as an inpatient hospital service for which payment
is made to the hospital under section 1886(d) or as a
hospital outpatient service for which payment is made
to the hospital under section 1834(t).
``(B) Definitions.--In this paragraph:
``(i) Covered hospital.--
``(I) In general.--The term
`covered hospital' means, with respect
to an inpatient or outpatient, a
hospital that had an arrangement with
an independent laboratory that was in
effect as of July 22, 1999, under which
a laboratory furnished the technical
component of physician pathology
services to fee-for-service medicare
beneficiaries who were hospital
inpatients or outpatients,
respectively, and submitted claims for
payment for such component to a carrier
with a contract under section 1842 and
not to the hospital.
``(II) Change in ownership does not
affect determination.--A change in
ownership with respect to a hospital on
or after the date referred to in
subclause (I) shall not affect the
determination of whether such hospital
is a covered hospital for purposes of
such subclause.
``(ii) Fee-for-service medicare
beneficiary.--The term `fee-for-service
medicare beneficiary' means an individual who
is entitled to benefits under part A, or
enrolled under this part, or both, but who is
not enrolled in any of the following:
``(I) A Medicare+Choice plan under
part C.
``(II) A plan offered by an
eligible organization under section
1876.
``(III) A program of all-inclusive
care for the elderly (PACE) under
section 1894.
``(IV) A social health maintenance
organization (SHMO) demonstration
project established under section
4018(b) of the Omnibus Budget
Reconciliation Act of 1987 (Public Law
100-203).''.
(b) Conforming Amendment.--Section 542 of BIPA (114 Stat. 2763A-
550) is repealed.
(c) Effective Dates.--The amendments made by this section shall
take effect as if included in the enactment of BIPA.
Subtitle B--Rural Home Health Improvements
SEC. 111. ELIMINATION OF 15 PERCENT REDUCTION IN PAYMENT RATES UNDER
THE PROSPECTIVE PAYMENT SYSTEM FOR HOME HEALTH SERVICES.
(a) In General.--Section 1895(b)(3)(A) of the Social Security Act
(42 U.S.C. 1395fff(b)(3)(A)), as amended by section 501(a) of BIPA (114
Stat. 2763A-529) is amended to read as follows:
``(A) Initial basis.--Under such system the
Secretary shall provide for computation of a standard
prospective payment amount (or amounts) as follows:
``(i) Such amount (or amounts) shall
initially be based on the most current audited
cost report data available to the Secretary and
shall be computed in a manner so that the total
amounts payable under the system for fiscal
year 2001 shall be equal to the total amount
that would have been made if the system had not
been in effect and if section 1861(v)(1)(L)(ix)
had not been enacted.
``(ii) For fiscal year 2002 and for each
subsequent fiscal year, such amount (or
amounts) shall be equal to the amount (or
amounts) determined under this paragraph for
the previous fiscal year, updated under
subparagraph (B).
Each such amount shall be standardized in a manner that
eliminates the effect of variations in relative case
mix and area wage adjustments among different home
health agencies in a budget neutral manner consistent
with the case mix and wage level adjustments provided
under paragraph (4)(A). Under the system, the Secretary
may recognize regional differences or differences based
upon whether or not the services or agency are in an
urbanized area.''.
(b) Elimination of Report.--Section 302(c) of the Medicare,
Medicaid, and SCHIP Balanced Budget Refinement Act of 1999 (Appendix F,
113 Stat. 1501A-360), as enacted into law by section 1000(a)(6) of
Public Law 106-113, and as amended by section 501(b) of BIPA (114 Stat.
2763A-529), is repealed.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the amendments made by section 501 of BIPA
(114 Stat. 2763A-529) .
SEC. 112. PERMANENT INCREASE FOR HOME HEALTH SERVICES FURNISHED IN A
RURAL AREA.
(a) In General.--Section 1895 of the Social Security Act (42 U.S.C.
1395fff), as amended by section 504 of BIPA (114 Stat. 2763A-531), is
amended by adding at the end the following new subsection:
``(f) Increase for Services Furnished in a Rural Area.--
``(1) In general.--In the case of home health services
furnished in a rural area (as defined in section 1886(d)(2)(D))
on or after April 1, 2001, the Secretary shall increase the
payment amount otherwise made under this section for such
services by 10 percent.
``(2) Waiver of budget neutrality.--The Secretary shall not
reduce the standard prospective payment amount (or amounts)
under this section applicable to home health services furnished
during a period to offset the increase in payments resulting
from the application of paragraph (1).''.
(b) Conforming Amendment.--Section 508 of BIPA (114 Stat. 2763A-
533) is repealed.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of BIPA.
Subtitle C--Rural Health Clinic Improvements
SEC. 121. IMPROVEMENT IN RURAL HEALTH CLINIC REIMBURSEMENT.
Section 1833(f) of the Social Security Act (42 U.S.C. 1395l(f)) is
amended--
(1) in paragraph (1), by striking ``, and'' at the end and
inserting a semicolon;
(2) in paragraph (2)--
(A) by striking ``in a subsequent year'' and
inserting ``in 1989 through 2001''; and
(B) by striking the period at the end and inserting
a semicolon; and
(3) by adding at the end the following new paragraphs:
``(3) in 2002, at $79 per visit; and
``(4) in a subsequent year, at the limit established under
this subsection for the previous year increased by the
percentage increase in the MEI (as so defined) applicable to
primary care services (as so defined) furnished as of the first
day of that year.''.
SEC. 122. EXCLUSION OF CERTAIN RURAL HEALTH CLINIC SERVICES AND
FEDERALLY QUALIFIED HEALTH CENTER SERVICES FROM THE
PROSPECTIVE PAYMENT SYSTEM FOR COVERED SKILLED NURSING
FACILITY SERVICES.
(a) In General.--Section 1888(e) of the Social Security Act (42
U.S.C. 1395yy(e)) is amended--
(1) in paragraph (2)(A)(i)(II), by striking ``clauses (ii)
and (iii)'' and inserting ``clauses (ii), (iii), and (iv)'';
and
(2) by adding at the end of paragraph (2)(A) the following
new clause:
``(iv) Exclusion of certain rural health
clinic services and federally qualified health
center services.--Services described in this
clause are--
``(I) rural health clinic services
(as defined in section 1861(aa)(1))
that would be described in clause (ii)
if such services were not furnished by
an individual affiliated with a rural
health clinic; and
``(II) Federally qualified health
center services (as defined in section
1861(aa)(3)) that would be described in
clause (ii) if such services were not
furnished by an individual affiliated
with a Federally qualified health
center.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to services furnished on or after January 1, 2002.
TITLE II--RURAL GRANT AND LOAN PROGRAMS FOR INFRASTRUCTURE, TECHNOLOGY,
AND TELEHEALTH
SEC. 201. CAPITAL INFRASTRUCTURE REVOLVING LOAN PROGRAM.
(a) In General.--Part A of title XVI of the Public Health Service
Act (42 U.S.C. 300q et seq.) is amended by adding at the end the
following new section:
``capital infrastructure revolving loan program
``Sec. 1603. (a) Authority To Make and Guarantee Loans.--
``(1) Authority to make loans.--The Secretary may make
loans from the fund established under section 1602(d) to any
rural entity for projects for capital improvements, including--
``(A) the acquisition of land necessary for the
capital improvements;
``(B) the renovation or modernization of any
building;
``(C) the acquisition or repair of fixed or major
movable equipment; and
``(D) such other project expenses as the Secretary
determines appropriate.
``(2) Authority to guarantee loans.--
``(A) In general.--The Secretary may guarantee the
payment of principal and interest for loans made to
rural entities for projects for any capital improvement
described in paragraph (1) to any non-Federal lender.
``(B) Interest subsidies.--In the case of a
guarantee of any loan made to a rural entity under
subparagraph (A), the Secretary may pay to the holder
of such loan and for and on behalf of the project for
which the loan was made, amounts sufficient to reduce
by not more than 3 percent of the net effective
interest rate otherwise payable on such loan.
``(b) Amount of Loan.--The principal amount of a loan directly made
or guaranteed under subsection (a) for a project for capital
improvement may not exceed $5,000,000.
``(c) Funding Limitations.--
``(1) Government credit subsidy exposure.--The total of the
Government credit subsidy exposure under the Credit Reform Act
of 1990 scoring protocol with respect to the loans outstanding
at any time with respect to which guarantees have been issued,
or which have been directly made, under subsection (a) may not
exceed $50,000,000 per year.
``(2) Total amounts.--Subject to paragraph (1), the total
of the principal amount of all loans directly made or
guaranteed under subsection (a) may not exceed $250,000,000 per
year.
``(d) Capital Assessment and Planning Grants.--
``(1) Nonrepayable grants.--Subject to paragraph (2), the
Secretary may make a grant to a rural entity, in an amount not
to exceed $50,000, for purposes of capital assessment and
business planning.
``(2) Limitation.--The cumulative total of grants awarded
under this subsection may not exceed $2,500,000 per year.
``(e) Termination of Authority.--The Secretary may not directly
make or guarantee any loan under subsection (a) or make a grant under
subsection (d) after September 30, 2006.''.
(b) Rural Entity Defined.--Section 1624 of the Public Health
Service Act (42 U.S.C. 300s-3) is amended by adding at the end the
following new paragraph:
``(15)(A) The term `rural entity' includes--
``(i) a rural health clinic, as defined in section
1861(aa)(2) of the Social Security Act;
``(ii) any medical facility with at least 1, but
less than 50 beds that is located in--
``(I) a county that is not part of a
metropolitan statistical area; or
``(II) a rural census tract of a
metropolitan statistical area (as determined
under the most recent modification of the
Goldsmith Modification, originally published in
the Federal Register on February 27, 1992 (57
Fed. Reg. 6725));
``(iii) a hospital that is classified as a rural,
regional, or national referral center under section
1886(d)(5)(C) of the Social Security Act; and
``(iv) a hospital that is a sole community hospital
(as defined in section 1886(d)(5)(D)(iii) of the Social
Security Act).
``(B) For purposes of subparagraph (A), the fact that a
clinic, facility, or hospital has been geographically
reclassified under the medicare program under title XVIII of
the Social Security Act shall not preclude a hospital from
being considered a rural entity under clause (i) or (ii) of
subparagraph (A).''.
(c) Conforming Amendments.--Section 1602 of the Public Health
Service Act (42 U.S.C. 300q-2) is amended--
(1) in subsection (b)(2)(D), by inserting ``or
1603(a)(2)(B)'' after ``1601(a)(2)(B)''; and
(2) in subsection (d)--
(A) in paragraph (1)(C), by striking ``section
1601(a)(2)(B)'' and inserting ``sections 1601(a)(2)(B)
and 1603(a)(2)(B)''; and
(B) in paragraph (2)(A), by inserting ``or
1603(a)(2)(B)'' after ``1601(a)(2)(B)''.
SEC. 202. HIGH TECHNOLOGY ACQUISITION GRANT AND LOAN PROGRAM.
Subpart I of part D of title III of the Public Health Service Act
(42 U.S.C. 241 et seq.), as amended by section 1501 of the Children's
Health Act of 2000 (Public Law 106-310; 114 Stat. 1146), is amended by
adding at the end the following section:
``SEC. 330I. HIGH TECHNOLOGY ACQUISITION GRANT AND LOAN PROGRAM.
``(a) Establishment of Program.--The Secretary, acting through the
Director of the Office of Rural Health Policy of the Health Resources
and Services Administration, shall establish a high technology
acquisition grant and loan program for the purpose of--
``(1) improving the quality of health care in rural areas
through the acquisition of advanced medical technology;
``(2) fostering the development of the networks described
in section 330A;
``(3) promoting resource sharing between urban and rural
facilities; and
``(4) improving patient safety and outcomes through the
acquisition of high technology, including software, information
services, and staff training.
``(b) Grants and Loans.--Under the program established under
subsection (a), the Secretary, acting through the Director of the
Office of Rural Health Policy, may award grants and make loans to any
eligible entity (as defined in subsection (d)(1)) for any costs
incurred by the eligible entity in acquiring eligible equipment and
services (as defined in subsection (d)(2)).
``(c) Limitations.--
``(1) In general.--Subject to paragraph (2), the total
amount of grants and loans made under this section to an
eligible entity may not exceed $100,000.
``(2) Federal sharing.--
``(A) Grants.--The amount of any grant awarded
under this section may not exceed 70 percent of the
costs to the eligible entity in acquiring eligible
equipment and services.
``(B) Loans.--The amount of any loan made under
this section may not exceed 90 percent of the costs to
the eligible entity in acquiring eligible equipment and
services.
``(d) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means a
hospital, health center, or any other entity that the Secretary
determines is appropriate that is located in a rural area or
region.
``(2) Eligible equipment and services.--The term `eligible
equipment and services' includes--
``(A) unit dose distribution systems;
``(B) software, information services, and staff
training;
``(C) wireless devices to transmit medical orders;
``(D) clinical health care informatics systems,
including bar code systems designed to avoid medication
errors and patient tracking systems;
``(E) telemedicine technology; and
``(F) any other technology that improves the
quality of health care provided in rural areas
including systems to improve privacy and address
administrative simplification needs.
``(e) Authorization of Appropriations.--For the purpose of carrying
out this section there are authorized to be appropriated such sums as
may be necessary for each of the fiscal years 2002 through 2007.''.
SEC. 203. ESTABLISHMENT OF TELEHEALTH RESOURCE CENTERS.
Subpart I of part D of title III of the Public Health Service Act
(42 U.S.C. 254b et seq.), as amended by section 202, is amended by
adding at the end the following:
``SEC. 330J. TELEHEALTH RESOURCE CENTERS.
``(a) Program Authorized.--The Secretary, acting through the
Director of the Office for the Advancement of Telehealth of the Health
Resources and Services Administration, shall award grants to eligible
entities to establish telehealth resource centers in accordance with
this section.
``(b) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means a
public or nonprofit private entity.
``(2) Telehealth.--The term `telehealth' means the use of
electronic information and telecommunications technologies to
support long-distance clinical health care, patient and
professional health-related education, public health, and
health administration.
``(c) Amount.--Each entity that receives a grant under subsection
(a) shall receive an amount not to exceed $1,500,000.
``(d) Equitable Distribution.--In awarding grants under subsection
(a), the Secretary shall ensure, to the greatest extent possible, that
such grants are equitably distributed among the geographical regions of
the United States.
``(e) Preference.--In awarding grants under subsection (a), the
Secretary shall give preference to eligible entities that have a
demonstrated record of providing or supporting the provision of health
care services for populations in rural areas.
``(f) Use of Funds.--An entity that receives a grant under
subsection (a) shall use funds from such grant to establish a
telehealth resource center that shall--
``(1) provide technical assistance, training, and support
to health care providers and a range of health care entities
that provide or will provide telehealth services for a
medically underserved community, including hospitals,
ambulatory care entities, long-term care facilities, public
health clinics, and schools;
``(2) provide for the dissemination of information and
research findings related to the use of telehealth
technologies;
``(3) provide for the dissemination of information
regarding the latest developments in health care;
``(4) conduct evaluations to determine the best application
of telehealth technologies to meet the health care needs of the
medically underserved community;
``(5) promote the integration of clinical information
systems with other telehealth technologies;
``(6) foster the use of telehealth technologies to provide
health care information and education for health care
professionals and consumers in a more effective manner; and
``(7) provide timely and appropriate evaluations to the
Office for the Advancement of Telehealth on lessons learned and
best telehealth practices in any areas served.
``(g) Collaboration.--In providing the services described in
subsection (f)(5), such entity shall collaborate, if feasible, with
private and public organizations and centers or programs that receive
Federal assistance and provide telehealth services.
``(h) Application.--An entity that desires a grant under subsection
(a) shall submit an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may require,
including--
``(1) a description of the manner in which the entity shall
establish and administer a telehealth resource center to meet
the requirements of this subsection; and
``(2) a description of the manner in which the activities
carried out by such center will meet the health care needs of
individuals in rural communities.
``(i) Report.--Not later than 5 years after the date of enactment
of this section, the Secretary shall submit to the appropriate
committees of Congress a report on each activity funded with a grant
under this section.
``(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) for fiscal year 2002, $30,000,000; and
``(2) for fiscal years 2003 through 2008, such sums as may
be necessary.''.
TITLE III--NATIONAL HEALTH SERVICE CORPS TAX RELIEF
SEC. 301. EXCLUSION OF CERTAIN AMOUNTS RECEIVED UNDER THE NATIONAL
HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM.
(a) In General.--Paragraph (2) of section 117(c) of the Internal
Revenue Code of 1986 (relating to the exceptions) is amended by
striking ``or'' at the end of subparagraph (A), by redesignating
subparagraph (B) as subparagraph (C), and by inserting after
subparagraph (A) the following new subparagraph:
``(B) the National Health Service Corps Loan
Repayment Program under section 338B(g)(1)(A) of such
Act, or''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to amounts received in taxable years beginning after December 31,
2001.
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