(ii) is located in an area designated by 
any law or regulation of the State as a 
rural area; or 
(iii) is designated by the State as a 
rural hospital. 
(C) AVAILABILITY OF RESERVE FUNDS IF 
LIMITED NUMBER OF RURAL HOSPITALS APPLY 
FOR GRANTS.—If the Secretary estimates that 
the amount of funds reserved under subpara-
graph (A) for hospitals described in such sub-
paragraph exceeds the maximum amount of 
funds permitted for such hospitals under sub-
section (d), the Secretary may reduce the 
amount reserved for such hospitals by an 
amount equal to such excess and use such 
funds for awarding grants to other eligible enti-
ties. 
(d) LIMITATION ON AMOUNT OF GRANT.—
(1) IN GENERAL.—A grant awarded under this 
section may not exceed the lesser of—
(A) an amount equal to the applicable per-
centage of the costs incurred by the eligible en-
tity for the project for which the entity is seek-
ing funding under this section; or 
(B) in the case of a grant made to a—
(i) hospital, $750,000; or 
(ii) skilled nursing facility, $200,000. 
(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1)(A), the term ‘‘applicable percent-
age’’ means, with respect to an eligible entity, the 
percentage of total net revenues for such period as 
determined appropriate by the Secretary for the en-
tity that consists of net revenues from the medicare 
and medicaid programs or the State children’s 
health insurance program under titles XVIII, XIX, 
and XXI of the Social Security Act. 
(e) ELIGIBLE ENTITY REQUIRED TO FURNISH SEC-
RETARY WITH INFORMATION.—An eligible entity receiv-
ing a grant under this section shall furnish the Secretary 
with such information as the Secretary may require to—
(1) evaluate the project for which the grant is 
made; and
(2) ensure that funding provided under the 
grant is expended for the purposes for which it is 
made. 
(f) REPORTS.—
(1) INTERIM REPORTS.—
(A) IN
GENERAL.—The Secretary shall 
submit, at least annually, a report to the Com-
mittee on Ways and Means of the House of
Representatives and the Committee on Finance 
of the Senate on the grant program established 
under this section. 
(B) CONTENTS.—A report submitted pur-
suant to subparagraph (A) shall include infor-
mation on—
(i) the number of grants made; 
(ii) the nature of the projects for 
which funding is provided under the grant 
program; 
(iii) the geographic distribution of 
grant recipients; and 
(iv) such other matters as the Sec-
retary determines appropriate. 
(2) FINAL REPORT.—Not later than 180 days 
after the completion of all of the projects for which 
a grant is made under this section, the Secretary 
shall submit a final report to the committees re-
ferred to in paragraph (1)(A) on the grant program 
established under this section, together with such 
recommendations for legislation and administrative 
action as the Secretary determines appropriate. 
(g) AUTHORIZATION OF APPROPRIATIONS.—
(1) AUTHORIZATION.—
(A) HOSPITALS.—There are authorized to 
be appropriated from the Federal Hospital In-
surance Trust Fund under section 1817 of the 
Social 
Security 
Act 
(42 
U.S.C. 
1395i) 
$93,000,000, for each of the fiscal years 2004 
through 2013, for the purpose of making grants 
under this section to eligible entities that are 
hospitals. 
(B) 
SKILLED
NURSING
FACILITIES.—
There are authorized to be appropriated from 
the Federal Hospital Insurance Trust Fund 
under section 1817 of the Social Security Act 
(42 U.S.C. 1395i) $4,500,000, for each of the 
fiscal years 2004 through 2013, for the purpose 
of making grants under this section to eligible 
entities that are skilled nursing facilities. 
(2) AVAILABILITY.—Any amounts appropriated 
pursuant to the authority contained in subparagraph 
(A) or (B) of paragraph (1) shall remain available, 
without fiscal year limitation, through September 
30, 2013.
Æ