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plicable certification requirements under title XVIII 
of the Social Security Act, and such other applicable 
State licensure and certificate of need requirements 
are met with respect to such satellites or remote site 
locations. 
SEC. 504. INCREASING THE DSH ADJUSTMENT CAP. 
(a) IN GENERAL.—Section 1886(d)(5)(F)(xiv) of the 
Social Security Act (42 U.S.C. 1395ww(d)(5)(F)(xiv)) is 
amended— 
(1) in subclause (II), by striking ‘‘12 percent’’ 
and inserting ‘‘the percent specified in subclause 
(III)’’; and 
(2) by adding at the end the following new sub-
clause: 
‘‘(III) The percent specified in this subclause is, in 
the case of discharges occurring— 
‘‘(a) before October 1, 2007, 12 percent; 
‘‘(b) during fiscal year 2008, 16 percent; 
‘‘(c) during fiscal year 2009, 18 percent; and 
‘‘(d) on or after October 1, 2009, 12 percent.’’. 
(b) SPECIAL RULE
IN COMPUTING DISPROPOR-
TIONATE PATIENT PERCENTAGE.— 
(1) IN GENERAL.—Section 1886(d)(5)(F)(vi) of 
such Act (42 U.S.C. 1395ww(d)(5)(F)(vi)) is 
amended by adding at the end the following: ‘‘In ap-
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plying this clause in the case of hospitals located in 
Puerto Rico, the Secretary shall substitute for the 
fraction described in subclause (I) one-half of the 
national average of such fraction for all subsection 
(d) hospitals, as estimated by the Secretary.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to discharges in cost 
reporting periods of hospitals beginning on or after 
January 1, 2008. 
SEC. 505. PPS-EXEMPT CANCER HOSPITALS. 
(a) AUTHORIZING
REBASING
FOR
PPS-EXEMPT 
CANCER HOSPITALS.—Section 1886(b)(3)(F) of the So-
cial Security Act (42 U.S.C. 1395ww(b)(3)(F)) is amend-
ed by adding at the end the following new clause: 
‘‘(iv) In the case of a hospital (or unit 
described in the matter following clause (v) 
of subsection (d)(1)(B)) that received pay-
ment under this subsection for inpatient 
hospital services furnished during cost re-
porting periods beginning before October 
1, 1999, that is within a class of hospital 
described in clause (iii) (other than sub-
clause (IV), relating to long-term care hos-
pitals, and that requests the Secretary (in 
a form and manner specified by the Sec-
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retary) to effect a rebasing under this 
clause for the hospital, the Secretary may 
compute the target amount for the hos-
pital’s 12-month cost reporting period be-
ginning during fiscal year 2008 as an 
amount equal to the average described in 
clause (ii) but determined as if any ref-
erence in such clause to ‘the date of the 
enactment of this subparagraph’ were a 
reference to ‘the date of the enactment of 
this clause’.’’. 
(b) ADDITIONAL CANCER HOSPITAL PROVISIONS.— 
(1) IN GENERAL.—Section 1886(d)(1) of the 
Social Security Act (42 U.S.C. 1395ww(d)(1)) is 
amended— 
(A) in subparagraph (B)(v)— 
(i) by striking ‘‘or’’ at the end of sub-
clause (II); and 
(ii) by adding at the end the fol-
lowing: 
‘‘(IV) a hospital that is a nonprofit corporation, 
the sole member of which is affiliated with a univer-
sity that has been the recipient of a cancer center 
support grant from the National Cancer Institute of 
the National Institutes of Health, and which sole 
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