I 

114TH CONGRESS 

1ST SESSION H. R. 977 

To enable hospital-based nursing programs that are affiliated with a hospital 

to maintain payments under the Medicare program to hospitals for the 

costs of such programs. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2015 

Mr. SCHOCK (for himself, Mr. TONKO, Mr. TURNER, Mr. HANNA, Mr. KELLY

of Pennsylvania, Mr. RANGEL, and Mr. PAYNE) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To enable hospital-based nursing programs that are affiliated 

with a hospital to maintain payments under the Medicare 

program to hospitals for the costs of such programs. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Making the Education 

5 of Nurses Dependable for Schools Act’’ or the ‘‘MEND 

6 Act’’. 


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1 SEC. 2. ENABLING HOSPITAL-BASED NURSING PROGRAMS 

2 THAT ARE AFFILIATED WITH A HOSPITAL TO 

3 MAINTAIN MEDICARE PAYMENTS FOR THE 

4 COSTS OF SUCH PROGRAMS. 

5 (a) IN GENERAL.—For purposes of clarifying the 

6 methodology for payment under the Medicare program 

7 under title XVIII of the Social Security Act to providers 

8 for the costs of nursing and allied health education activi9 ties for cost reporting periods beginning on or after the 

10 date of the enactment of this Act, the Secretary of Health 

11 and Human Services shall apply section 413.85 of title 

12 42, Code of Federal Regulations— 

13 (1) by treating a provider as meeting all of the 

14 requirements described in paragraph (f)(1) of such 

15 section if the provider or a wholly owned subsidiary 

16 educational institution of such provider singly or col17 lectively meets all of such requirements; 

18 (2) in the case of a provider that would meet 

19 the requirements of paragraph (g)(3) of such sec20 tion, with respect to a nursing or allied health edu21 cation program, except that the transfer described in 

22 such paragraph of such a program to a wholly 

23 owned subsidiary educational institution in order to 

24 meet accreditation standards occurred after October 

25 1, 2003, by treating such provider as meeting the 

26 requirements of such paragraph (and eligible for 


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1 payments under such paragraph) with respect to 

2 such program; 

3 (3) in the case of a provider or wholly owned 

4 subsidiary educational institution of such provider 

5 that has been in continuous operation since October 

6 1, 2003, by treating such provider, beginning as of 

7 such date with respect to such program, as described 

8 in paragraphs (1) and (2) of this subsection; and 

9 (4) by defining the term ‘‘wholly owned sub10 sidiary educational institution’’, as referenced in 

11 such section, as such term is defined under sub12 section (b). 

13 (b) DEFINITIONS.—For purposes of this section: 

14 (1) PROVIDER.—The term ‘‘provider’’ has the 

15 meaning given such term in section 400.202 of title 

16 42, Code of Federal Regulations. 

17 (2) WHOLLY OWNED SUBSIDIARY EDUCATIONAL

18 INSTITUTION.—The term ‘‘wholly owned subsidiary 

19 educational institution’’ means, with respect to a 

20 provider, an educational institution that— 

21 (A) is organized as a legal entity distinct 

22 from the provider; 

23 (B) has the provider as its sole owner or 

24 sole member; and 


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1 (C) is organized in the same State in 

2 which the provider is organized or registered to 

3 do business. 

Æ 


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