317 
HR 3162 PCS
‘‘(IV) for each of fiscal years 
2004, 2005, 2006, and 2007, the rate 
computed for the previous fiscal year 
increased by the skilled nursing facil-
ity market basket percentage change 
for the fiscal year involved; 
‘‘(V) for fiscal year 2008, the 
rate computed for the previous fiscal 
year; and’’. 
(b) 
DELAYED
EFFECTIVE
DATE.—Section 
1888(e)(4)(E)(ii)(V) of the Social Security Act, as in-
serted by subsection (a)(3), shall not apply to payment 
for days before January 1, 2008. 
SEC. 507. REVOCATION OF UNIQUE DEEMING AUTHORITY 
OF THE JOINT COMMISSION FOR THE AC-
CREDITATION OF HEALTHCARE ORGANIZA-
TIONS. 
(a) REVOCATION.—Section 1865 of the Social Secu-
rity Act (42 U.S.C. 1395bb) is amended— 
(1) by striking subsection (a); and 
(2) by redesignating subsections (b), (c), (d), 
and (e) as subsections (a), (b), (c), and (d), respec-
tively. 
(b) CONFORMING AMENDMENTS.—(1) Such section 
is further amended— 
VerDate Aug 31 2005 
02:04 Sep 05, 2007
Jkt 059200
PO 00000
Frm 00317
Fmt 6652
Sfmt 6201
E:\BILLS\H3162.PCS
H3162
bajohnson on PROD1PC71 with BILLS
318 
HR 3162 PCS
(A) in subsection (a)(1), as so redesig-
nated, by striking ‘‘In addition, if’’ and insert-
ing ‘‘If’’; 
(B) in subsection (b), as so redesignated— 
(i) by striking ‘‘released to him by the 
Joint Commission on Accreditation of Hos-
pitals,’’ and inserting ‘‘released to the Sec-
retary by’’; and 
(ii) by striking the comma after ‘‘As-
sociation’’; 
(C) in subsection (c), as so redesignated, 
by striking ‘‘pursuant to subsection (a) or 
(b)(1)’’ and inserting ‘‘pursuant to subsection 
(a)(1)’’; and 
(D) in subsection (d), as so redesignated, 
by striking ‘‘pursuant to subsection (a) or 
(b)(1)’’ and inserting ‘‘pursuant to subsection 
(a)(1)’’. 
(2) Section 1861(e) of such Act (42 U.S.C. 
1395x(e)) is amended in the fourth sentence by 
striking ‘‘and (ii) is accredited by the Joint Commis-
sion on Accreditation of Hospitals, or is accredited 
by or approved by a program of the country in which 
such institution is located if the Secretary finds the 
accreditation or comparable approval standards of 
VerDate Aug 31 2005 
02:04 Sep 05, 2007
Jkt 059200
PO 00000
Frm 00318
Fmt 6652
Sfmt 6201
E:\BILLS\H3162.PCS
H3162
bajohnson on PROD1PC71 with BILLS
319 
HR 3162 PCS
such program to be essentially equivalent to those of 
the Joint Commission on Accreditation of Hos-
pitals.’’ and inserting ‘‘and (ii) is accredited by a na-
tional accreditation body recognized by the Secretary 
under section 1865(a), or is accredited by or ap-
proved by a program of the country in which such 
institution is located if the Secretary finds the ac-
creditation or comparable approval standards of 
such program to be essentially equivalent to those of 
such a national accreditation body.’’. 
(3) Section 1864(c) of such Act (42 U.S.C. 
1395aa(c)) is amended by striking ‘‘pursuant to sub-
section (a) or (b)(1) of section 1865’’ and inserting 
‘‘pursuant to section 1865(a)(1)’’. 
(4) Section 1875(b) of such Act (42 U.S.C. 
1395ll(b)) is amended by striking ‘‘the Joint Com-
mission on Accreditation of Hospitals,’’ and insert-
ing ‘‘national accreditation bodies under section 
1865(a)’’. 
(5) Section 1834(a)(20)(B) of such Act (42 
U.S.C. 1395m(a)(20)(B)) is amended by striking 
‘‘section 1865(b)’’ and inserting ‘‘section 1865(a)’’. 
(6) Section 1852(e)(4)(C) of such Act (42 
U.S.C. 1395w–22(e)(4)(C)) is amended by striking 
VerDate Aug 31 2005 
02:04 Sep 05, 2007
Jkt 059200
PO 00000
Frm 00319
Fmt 6652
Sfmt 6201
E:\BILLS\H3162.PCS
H3162
bajohnson on PROD1PC71 with BILLS
320 
HR 3162 PCS
‘‘section 
1865(b)(2)’’ 
and 
inserting 
‘‘section 
1865(a)(2)’’. 
(c) AUTHORITY TO RECOGNIZE JCAHO AS A NA-
TIONAL ACCREDITATION BODY.—The Secretary of Health 
and Human Services may recognize the Joint Commission 
on Accreditation of Healthcare Organizations as a na-
tional accreditation body under section 1865 of the Social 
Security Act (42 U.S.C. 1395bb), as amended by this sec-
tion, upon such terms and conditions, and upon submis-
sion of such information, as the Secretary may require. 
(d) EFFECTIVE DATE; TRANSITION RULE.—(1) Sub-
ject to paragraph (2), the amendments made by this sec-
tion shall apply with respect to accreditations of hospitals 
granted on or after the date that is 18 months after the 
date of the enactment of this Act. 
(2) For purposes of title XVIII of the Social Security 
Act (42 U.S.C. 1395 et seq.), the amendments made by 
this section shall not effect the accreditation of a hospital 
by the Joint Commission on Accreditation of Healthcare 
Organizations, or under accreditation or comparable ap-
proval standards found to be essentially equivalent to ac-
creditation or approval standards of the Joint Commission 
on Accreditation of Healthcare Organizations, for the pe-
riod of time applicable under such accreditation. 
VerDate Aug 31 2005 
02:04 Sep 05, 2007
Jkt 059200
PO 00000
Frm 00320
Fmt 6652
Sfmt 6201
E:\BILLS\H3162.PCS
H3162
bajohnson on PROD1PC71 with BILLS
321 
HR 3162 PCS
SEC. 508. TREATMENT OF MEDICARE HOSPITAL RECLASSI-
FICATIONS. 
(a) EXTENDING
CERTAIN
MEDICARE
HOSPITAL 
WAGE INDEX RECLASSIFICATIONS THROUGH FISCAL 
YEAR 2009.— 
(1) IN GENERAL.—Section 106(a) of the Medi-
care Improvements and Extension Act of 2006 (divi-
sion B of Public Law 109–432) is amended by strik-
ing ‘‘September 30, 2007’’ and inserting ‘‘September 
30, 2009’’. 
(2) SPECIAL EXCEPTION RECLASSIFICATIONS.— 
The Secretary of Health and Human Services shall 
extend for discharges occurring through September 
30, 2009, the special exception reclassification made 
under the authority of section 1886(d)(5)(I)(i) of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1395ww(d)(5)(I)(i)) and contained in the final rule 
promulgated by the Secretary in the Federal Reg-
ister on August 11, 2004 (69 Fed. Reg. 49105, 
49107). 
(b) DISREGARDING SECTION 508 HOSPITAL RECLAS-
SIFICATIONS FOR PURPOSES OF GROUP RECLASSIFICA-
TIONS.—Section 508 of the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003 (Public Law 
108–173, 42 U.S.C. 1395ww note) is amended by adding 
at the end the following new subsection: 
VerDate Aug 31 2005 
02:04 Sep 05, 2007
Jkt 059200
PO 00000
Frm 00321
Fmt 6652
Sfmt 6201
E:\BILLS\H3162.PCS
H3162
bajohnson on PROD1PC71 with BILLS
322 
HR 3162 PCS
‘‘(g) DISREGARDING HOSPITAL RECLASSIFICATIONS 
FOR PURPOSES
OF GROUP RECLASSIFICATIONS.—For 
purposes of the reclassification of a group of hospitals in 
a geographic area under section 1886(d), a hospital reclas-
sified under this section (including any such reclassifica-
tion which is extended under section 106(a) of the Medi-
care Improvements and Extension Act of 2006) shall not 
be taken into account and shall not prevent the other hos-
pitals in such area from establishing such a group for such 
purpose.’’. 
(c) OTHER HOSPITAL RECLASSIFICATION PROVI-
SIONS.—Notwithstanding any other provision of law— 
(1) In the case of a subsection (d) hospital (as 
defined for purposes of section 1886 of the Social 
Security Act (42 U.S.C. 1395ww)) located in Put-
nam County, Tennessee with respect to which a re-
classification of its wage index for purposes of such 
section would (but for this subsection) expire on 
September 30, 2007, such reclassification of such 
hospital shall be extended through September 30, 
2008. 
(2) For purposes of making payments under 
section 1886(d) of the Social Security Act (42 
U.S.C. 1395ww(d)), the Secretary of Health and 
Human Services shall classify any hospital located in 
VerDate Aug 31 2005 
02:04 Sep 05, 2007
Jkt 059200
PO 00000
Frm 00322
Fmt 6652
Sfmt 6201
E:\BILLS\H3162.PCS
H3162
bajohnson on PROD1PC71 with BILLS