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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Making the Education 
of Nurses Dependable for Schools Act’’ or the ‘‘MEND 
Act’’. 
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SEC. 2. ENABLING HOSPITAL-BASED NURSING PROGRAMS 
THAT ARE AFFILIATED WITH A HOSPITAL TO 
MAINTAIN MEDICARE PAYMENTS FOR THE 
COSTS OF SUCH PROGRAMS. 
(a) IN GENERAL.—For purposes of clarifying the 
methodology for payment under the Medicare program 
under title XVIII of the Social Security Act to providers 
for the costs of nursing and allied health education activi-
ties for cost reporting periods beginning on or after the 
date of the enactment of this Act, the Secretary of Health 
and Human Services shall apply section 413.85 of title 
42, Code of Federal Regulations— 
(1) by treating a provider as meeting all of the 
requirements described in paragraph (f)(1) of such 
section if the provider or a wholly owned subsidiary 
educational institution of such provider singly or col-
lectively meets all of such requirements; 
(2) in the case of a provider that would meet 
the requirements of paragraph (g)(3) of such sec-
tion, with respect to a nursing or allied health edu-
cation program, except that the transfer described in 
such paragraph of such a program to a wholly 
owned subsidiary educational institution in order to 
meet accreditation standards occurred after October 
1, 2003, by treating such provider as meeting the 
requirements of such paragraph (and eligible for 
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payments under such paragraph) with respect to 
such program; 
(3) in the case of a provider or wholly owned 
subsidiary educational institution of such provider 
that has been in continuous operation since October 
1, 2003, by treating such provider, beginning as of 
such date with respect to such program, as described 
in paragraphs (1) and (2) of this subsection; and 
(4) by defining the term ‘‘wholly owned sub-
sidiary educational institution’’, as referenced in 
such section, as such term is defined under sub-
section (b). 
(b) DEFINITIONS.—For purposes of this section: 
(1) PROVIDER.—The term ‘‘provider’’ has the 
meaning given such term in section 400.202 of title 
42, Code of Federal Regulations. 
(2) WHOLLY OWNED SUBSIDIARY EDUCATIONAL 
INSTITUTION.—The term ‘‘wholly owned subsidiary 
educational institution’’ means, with respect to a 
provider, an educational institution that— 
(A) is organized as a legal entity distinct 
from the provider; 
(B) has the provider as its sole owner or 
sole member; and 
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(C) is organized in the same State in 
which the provider is organized or registered to 
do business. 
Æ 
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