I 111th CONGRESS 1st Session H. R. 2176 IN THE HOUSE OF REPRESENTATIVES April 29, 2009 Mr. Pomeroy (for himself, Mr. Sam Johnson of Texas, and Mrs. Capps) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend title XVIII of the Social Security Act to continue the ability of hospitals to supply a needed workforce of nurses and allied health professionals by preserving funding for hospital operated nursing and allied health education programs.

1.

Short title

This Act may be cited as the Nursing and Allied Health Education Preservation Act of 2009.

2.

Preservation of provider operated nursing and allied health education programs

(a)

In general

Section 1861(v) of the Social Security Act (42 U.S.C. 1395x(v)) is amended by adding at the end the following new paragraph: (9)

Preservation of provider-operated nursing and allied health education programs

(A)

In general

The Secretary shall not deny provider-operated status for a nursing and allied health education program that substantially meets requirements in effect under paragraphs (e) and (f) of section 413.85 of title 42, Code of Federal Regulations, as of October 1, 2006, on the basis of an organizational structure, contractual arrangements, or legal structure of the program, or a change in such a structure or arrangement, such as those described in subparagraph (B), so long as a hospital, hospitals, or health system continues to substantially control the nursing or allied health program. (B)

Examples of arrangements and structures

The following are examples of an organizational structure, contractual arrangement, legal structure, or a change in such a structure or arrangement, referred to in subparagraph (A) of a provider-operated program: (i)The students enrolled in the program are concurrently enrolled in a college, community college, or university or receive degrees, diplomas, or other certificates or credentials upon graduation from both the nursing or allied health education and the college, community college, or university. (ii)The program enters into an agreement with a third party to provide classroom, administrative, or financial services if the contract is related to the nursing or allied health education activity and the hospital or other provider retains the authority to modify, amend, rescind, or renew the agreement. (iii)The program fails to comply with regulations or requirements promulgated for such a program because such compliance would result in direct conflict with requirements— (I)of the State Board of Nursing or other regulatory agency in the State in which the program is located; or (II)of a national nursing or allied health accreditation body or a regional, institutional accrediting body that is recognized by the Department of Education or such a State Board or regulatory agency. (iv)The program which is offered by a for profit college or university is wholly owned by a hospital or health system, or by a nonprofit college or university that is operated by a hospital or health system, and collectively the college or university and the hospital or health system meets all the requirements in effect under paragraphs (e) and (f) of section 413.85 of title 42, Code of Federal Regulations. (v)The nursing or allied health education program is operated by one or more hospitals, or a health system or chain organization, or any combination of a hospital or hospitals and providers or entities whose principal business is providing hospital services. (C)

Limitation on payment denials

The Secretary— (i)shall not recoup, withhold, offset, disallow, or deny reasonable cost, pass-through payment for the costs of approved educational activities for a nursing or allied health education program described in subparagraph (A) on a ground for which a denial of provider-operated status is not permitted under such subparagraph; (ii)shall not reopen any cost reporting year of any hospital for the purpose of effecting any recoupment or other denial of payment described in clause (i) and shall withdraw and discontinue any such reopening effected before the date of the enactment of this paragraph; and (iii)shall restore to a hospital any such recoupment or denial effected for a previous cost reporting year by not later than the hospital’s cost reporting year beginning after such date of enactment. (D)

Construction

This paragraph shall not affect payment— (i)with respect to a provider-operated program which is in compliance with regulations and guidance issued as of the date of the enactment of this paragraph; or (ii)to a hospital or provider with respect to reasonable cost, pass-through reimbursement pursuant to section 4004(b) of the Omnibus Budget Reconciliation Act of 1990 (Public Law 101–508; 104 Stat. 1388–39). .