To amend title XVIII of the Social Security Act to provide for a change in payment for certain hospitals under Medicare.

To amend title XVIII of the Social Security Act to provide for a change in payment for certain hospitals under Medicare. 1. Change in Medicare payment for certain hospitals (a) In general Subsection (d)(1)(B) of section 1886 of the Social Security Act ( 42 U.S.C. 1395ww (1) in clause (iv)-— (A) in subclause (I)— (i) by striking (iv)(I) (iv) (ii) by striking or (B) in subclause (II)— (i) by striking , or (ii) by redesignating such subclause as clause (vi) and by moving it to immediately follow clause (v); and (2) in clause (v), by striking the semicolon at the end and inserting , or (b) Conforming payment references Subsection (b) of such section is amended— (1) in paragraph (2)(E)(ii), by adding at the end the following new subclause: (III) Hospitals described in clause (vi) of such subsection. ; (2) in paragraph (3)(F)(iii), by adding at the end the following new subclause: (VI) Hospitals described in clause (vi) of such subsection. ; (3) in paragraph (3)(G)(ii), by inserting or (vi) clause (iv) (4) in paragraph (3)(H)(iv), by adding at the end the following new subclause: (IV) Hospitals described in clause (vi) of such subsection. ; (5) in paragraph (3)(J), by striking subsection (d)(1)(B)(iv) clause (iv) or (vi) of subsection (d)(1)(B) (6) in paragraph (7)(B), by adding at the end the following new clause: (iv) Hospitals described in clause (vi) of such subsection. . (c) Additional conforming amendments The second sentence of subsection (d)(1)(B) of such section is amended— (1) by inserting (as in effect as of such date) clause (iv) (2) by inserting (or, in the case of a hospital described in clause (iv)(II), as so in effect, shall be classified under clause (vi) on and after the effective date of such clause (vi) and for cost reporting periods beginning on or after January 1, 2014, shall not be subject to subsection (m) as of the date of such classification) so classified (d) Application In the case of a hospital that is classified under clause (iv)(II) of section 1886(d)(1)(B) of the Social Security Act ( 42 U.S.C. 1395ww(d)(1)(B) 42 U.S.C. 1395ww(b) 42 U.S.C. 1395ww(b)(3)(B)(ii)

Summary: Amends title XVIII (Medicare) of the Social Security Act (SSA), with respect to payment to hospitals for inpatient hospital services, to revise the payment formula for certain "subsection (d) hospitals" under Medicare. (Generally, a subsection (d) hospital is an acute care hospital, particularly one that receives payments under Medicare's inpatient prospective payment system [IPPS], when providing covered inpatient services to eligible beneficiaries.) Specifies as the kind of subsection (d) hospital to which this payment formula applies any hospital that: (1) first received a payment in 1986 which has an average inpatient length of stay of more than 20 days, and (2) has 80% or more of its annual Medicare inpatient discharges with a principal diagnosis that reflects a finding of neoplastic disease in the 12-month cost reporting period ending in FY1997. Requires payments for inpatient operating costs, in the case of such hospitals, for cost reporting periods beginning on or after January 1, 2014, to be based upon the established target amount per discharge, increased for each succeeding cost reporting period by the market basket percentage increase.