Section 3123

SEC. 3123. EXTENSION OF THE RURAL COMMUNITY HOSPITAL DEMONSTRATION PROGRAM.

[a] One-year Extension- Section 410A of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 [Public Law 108-173; 117 Stat. 2272] is amended by adding at the end the following new subsection:

'[g] One-Year Extension of Demonstration Program-

'[1] IN GENERAL- Subject to the succeeding provisions of this subsection, the Secretary shall conduct the demonstration program under this section for an additional 1-year period [in this section referred to as the '1-year extension period'] that begins on the date immediately following the last day of the initial 5-year period under subsection [a][5].

'[2] EXPANSION OF DEMONSTRATION STATES- Notwithstanding subsection [a][2], during the 1-year extension period, the Secretary shall expand the number of States with low population densities determined by the Secretary under such subsection to 20. In determining which States to include in such expansion, the Secretary shall use the same criteria and data that the Secretary used to determine the States under such subsection for purposes of the initial 5-year period.

'[3] INCREASE IN MAXIMUM NUMBER OF HOSPITALS PARTICIPATING IN THE DEMONSTRATION PROGRAM- Notwithstanding subsection [a][4], during the 1-year extension period, not more than 30 rural community hospitals may participate in the demonstration program under this section.

'[4] NO AFFECT ON HOSPITALS IN DEMONSTRATION PROGRAM ON DATE OF ENACTMENT- In the case of a rural community hospital that is participating in the demonstration program under this section as of the last day of the initial 5-year period, the Secretary shall provide for the continued participation of such rural community hospital in the demonstration program during the 1-year extension period unless the rural community hospital makes an election, in such form and manner as the Secretary may specify, to discontinue such participation.'.

[b] Conforming Amendments- Subsection [a][5] of section 410A of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 [Public Law 108-173; 117 Stat. 2272] is amended by inserting '[in this section referred to as the 'initial 5-year period'] and, as provided in subsection [g], for the 1-year extension period' after '5-year period'.

[c] Technical Amendments-

[1] Subsection [b] of section 410A of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 [Public Law 108-173; 117 Stat. 2272] is amended--

[A] in paragraph [1][B][ii], by striking '2]' and inserting '2]]'; and

[B] in paragraph [2], by inserting 'cost' before 'reporting period' the first place such term appears in each of subparagraphs [A] and [B].

[2] Subsection [f][1] of section 410A of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 [Public Law 108-173; 117 Stat. 2272] is amended--

[A] in subparagraph [A][ii], by striking 'paragraph [2]' and inserting 'subparagraph [B]'; and

[B] in subparagraph [B], by striking 'paragraph [1][B]' and inserting 'subparagraph [A][ii]'.