SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preserving Rehabilitation Innovation 
Centers Act of 2013''.

SEC. 2. FINDING.

    Congress makes the following findings:
            (1) In the United States, there are an estimated 1,181 
        inpatient rehabilitation facilities. Among these facilities is 
        a small group of rehabilitation institutions that are important 
        for the future of rehabilitation care and medicine, as well as 
        to patient recovery.
            (2) This unique category of inpatient rehabilitation 
        institutions treat the most complex conditions, such as 
        traumatic brain injury, stroke, spinal cord injury, childhood 
        disease, burns, and wartime injuries.
            (3) These leading inpatient rehabilitation institutions are 
        all not-for-profit or Government-owned institutions and serve a 
        high volume of Medicare or Medicaid beneficiaries.
            (4) Each member of this small group of inpatient 
        rehabilitation institutions has been recognized by the Federal 
        Government for its contributions to cutting-edge research to 
        develop solutions that enhance quality of care, improve patient 
        outcomes, and reduce health care costs.
            (5) This cohort of inpatient rehabilitation institutions 
        helps to improve the practice and standard of rehabilitation 
        medicine across the Nation by training physicians, medical 
        students, and other clinicians.
            (6) It is vital that these unique inpatient rehabilitation 
        institutions are supported so they can continue to lead the 
        Nation's efforts to--
                    (A) advance integrated, multidisciplinary 
                rehabilitation research;
                    (B) provide cutting-edge medical care to the most 
                complex rehabilitation patients;
                    (C) serve as education and training facilities for 
                the physicians, nurses, and other health professionals 
                who serve rehabilitation patients; and
                    (D) ensure Medicare and Medicaid beneficiaries 
                receive state-of-the-art, high-quality rehabilitation 
                care.

SEC. 3. INDIRECT COSTS PAYMENT FOR REHABILITATION INNOVATION CENTERS.

    Section 1886(j) of the Social Security Act (42 U.S.C. 1395ww(j)) is 
amended--
            (1) by redesignating paragraph (8) as paragraph (9); and
            (2) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) Indirect costs payment for rehabilitation innovation 
        centers.--
                    ``(A) Study relating to additional payments to 
                rehabilitation innovation centers to account for higher 
                costs; authority to increase payments.--
                            ``(i) Study.--Not later than July 1, 2015, 
                        the Secretary shall conduct a study to 
                        determine whether there should be an increase 
                        in the prospective payment rate that would 
                        otherwise be made to a rehabilitation 
                        innovation center under this subsection for 
                        purposes of covering the additional costs that 
                        are incurred by such centers in furnishing 
                        items and services to individuals under this 
                        title, conducting research, and providing 
                        medical training, and if the Secretary 
                        determines that such an increase is 
                        recommended, the amount of such increase that 
                        is needed to cover such additional costs.
                            ``(ii) Authority to increase payments.--
                        Insofar as the Secretary determines under 
                        clause (i) that there should be an increase in 
                        the prospective payment rate to rehabilitation 
                        innovation centers, the Secretary may provide 
                        on a prospective basis for an appropriate 
                        percentage increase in such rate.
                    ``(B) Rehabilitation innovation center defined.--
                            ``(i) In general.--Subject to clause (iv), 
                        in this paragraph, the term `rehabilitation 
                        innovation center' means a rehabilitation 
                        facility that, determined as of the date of the 
                        enactment of this paragraph, is described in 
                        clause (ii) or clause (iii).
                            ``(ii) Not-for-profit.--A rehabilitation 
                        facility described in this clause is a facility 
                        that--
                                    ``(I) is classified as a not-for-
                                profit entity under the Centers for 
                                Medicare & Medicaid Services 2010 
                                Provider of Services file;
                                    ``(II) holds at least one Federal 
                                rehabilitation research and training 
                                designation for research projects on 
                                traumatic brain injury, spinal cord 
                                injury, or stroke rehabilitation 
                                research from the Rehabilitation 
                                Research and Training Centers or the 
                                Rehabilitation Engineering Research 
                                Center at the National Institute on 
                                Disability and Rehabilitation Research 
                                at the Department of Education;
                                    ``(III) has a minimum Medicare case 
                                mix index of 1.1144 according to the 
                                IRF Rate Setting File for the 
                                Correction Notice for the Inpatient 
                                Rehabilitation Facility Prospective 
                                Payment System for Federal Fiscal Year 
                                2012 (78 Fed. Reg. 59256); and
                                    ``(IV) has at least 300 Medicare 
                                discharges per year or at least 200 
                                Medicaid discharges per year.
                            ``(iii) Government-owned.--A rehabilitation 
                        facility described in this clause is a facility 
                        that--
                                    ``(I) is classified as a 
                                Government-owned institution under the 
                                Centers for Medicare & Medicaid 
                                Services 2010 Provider of Services 
                                file;
                                    ``(II) holds at least one Federal 
                                rehabilitation research and training 
                                designation for research projects on 
                                traumatic brain injury, spinal cord 
                                injury, or stroke rehabilitation 
                                research from the Rehabilitation 
                                Research and Training Centers, the 
                                Rehabilitation Engineering Research 
                                Center, or the Model Spinal Cord Injury 
                                Systems at the National Institute on 
                                Disability and Rehabilitation Research 
                                at the Department of Education;
                                    ``(III) has a minimum Medicare case 
                                mix index of 1.1144 according to the 
                                IRF Rate Setting File for the 
                                Correction Notice for the Inpatient 
                                Rehabilitation Facility Prospective 
                                Payment System for Federal Fiscal Year 
                                2012 (78 Fed. Reg. 59256); and
                                    ``(IV) has a disproportionate share 
                                hospital (DSH) percentage of at least 
                                0.6300 according to the IRF Rate 
                                Setting File for the Correction Notice 
                                for the Inpatient Rehabilitation 
                                Facility Prospective Payment System for 
                                Federal Fiscal Year 2012 (78 Fed. Reg. 
                                59256).
                            ``(iv) Authority.--The Secretary may 
                        consider applications from inpatient 
                        rehabilitation facilities that are not 
                        described in clause (ii) or (iii) as of the 
                        date of the enactment of this paragraph but who 
                        are subsequently so described.''.
Preserving Rehabilitation Innovation Centers Act of 2013 - Amends title XVIII (Medicare) of the Social Security Act to direct the Secretary of Health and Human Services (HHS) to study whether there should be an increase in the prospective payment rate for inpatient rehabilitation services that would otherwise be made to a rehabilitation innovation center to cover additional costs incurred in: (1) furnishing items and services to individuals conducting research, and (2) providing medical training. Requires the study also to specify the amount of such an increase if the Secretary determines that it is recommended. 
Preserving Rehabilitation Innovation Centers Act of 2013