Special treatment of cancer hospitals under the Medicare program

(a)

In general

Section 1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)) is amended— (1)by striking or at the end of clause (iv); (2)by striking the semicolon at the end of clause (v) and inserting , or; and (3)by inserting after clause (v) the following new clause:

(vi)a hospital that— (I)is located in a State which ranks (according to the National Cancer Institute's statistics published in May of 2005) among the top ten States in the incidence of non-Hodgkins lymphoma, ovarian cancer, thyroid cancer, and cervical cancer and among the top ten States with the highest death rate for breast cancer and uterine cancer; (II)is located in a State that as of December 31, 2006, had only one center under section 414 of the Public Health Service Act that has been designated by the National Cancer Institute as a comprehensive center currently serving all 21 counties in the most densely populated State in the nation (U.S. Census estimate for 2005: 8,717,925 persons; 1,134.5 persons per square mile), serving more than 70,000 patient visits annually; (III)as of December 31, 2006, served as the teaching and clinical care, research and training hospital for the Center described in subclause (II), providing significant financial and operational support to such Center; (IV)as of December 31, 2006, served as a core and essential element in such Center which conducts more than 130 clinical trial activities, national cooperative group studies, investigator-initiated and peer review studies and has received as of 2005 at least $93,000,000 in research grant awards; (V)as of December 31, 2006, can demonstrate that it has been a unique and an integral component of such Center since such Center's inception; (VI)as of December 31, 2006, includes dedicated patient care units organized primarily for the treatment of and research on cancer with approximately 125 beds, 75 percent of which are dedicated to cancer patients, and contains a radiation oncology department as well as specialized emergency services for oncology patients; (VII)as of December 31, 2004, is identified as the focus of the Center's inpatient activities in the Center's application as a NCI-designated comprehensive cancer center and shares the NCI comprehensive cancer designation with the Center; and (VIII)as of December 31, 2006, has been recognized with a certificate of approval with commendation by the American College of Surgeons Commission on Cancer;

(b)

Conforming amendment

Section 1886(b)(3)(E) of such Act (42 U.S.C. 1395ww(b)(3)(E)) is amended by striking clause (v) and inserting clauses (v) and (vi). (c)

Effective date; payments

(1)

Application to cost reporting periods

Any classification by reason of section 1886(d)(1)(B)(vi) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)(vi)), as inserted by subsection (a), shall apply to cost reporting periods beginning on or after January 1, 2006. (2)

Base target amount

Notwithstanding subsection (b)(3)(E) of section 1886 of the Social Security Act (42 U.S.C. 1395ww), in the case of a hospital described in subsection (d)(1)(B)(vi) of such section, as inserted by subsection (a)— (A)the hospital shall be permitted to resubmit the 2006 Medicare 2552 cost report incorporating a cancer hospital sub-provider number and to apply the Medicare ratio-of-cost-to-charge settlement methodology for outpatient cancer services; and (B)the hospital’s target amount under subsection (b)(3)(E)(i) of such section for the first cost reporting period beginning on or after January 1, 2006, shall be the allowable operating costs of inpatient hospital services (referred to in subclause (I) of such subsection) for such first cost reporting period. (3)

Deadline for payments

Any payments owed to a hospital as a result of this section for periods occurring before the date of the enactment of this Act shall be made expeditiously, but in no event later than 1 year after such date of enactment.