applicable under subparagraphs (A) and (B) of sec-
tion 41(f)(1).’’. 
(d) GRANTS TO NON-PROFIT HOSPITALS AND CLIN-
ICS.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services, acting through the Administrator 
of the Health Resources and Services Administra-
tion, shall award grants to eligible non-profit hos-
pitals and clinics to assist such hospitals and clinics 
in defraying qualified medical malpractice insurance 
expenditures. 
(2) ELIGIBLE NON-PROFIT HOSPITAL OR CLIN-
IC.—To be eligible to receive a grant under para-
graph (1), an entity shall— 
(A) be a non-profit hospital or clinic; 
(B) be located in a the Hurricane Katrina- 
affected area; 
(C) serve primarily medically underserved 
communities; 
(D) be unable to claim the tax credit de-
scribed in section 45N of the Internal Revenue 
Code of 1986 for the year for which an applica-
tion is submitted under subparagraph (E); and 
(E) prepare and submit to the Secretary of 
Health and Human Services an application at 
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such time, in such manner, and containing such 
information as the Secretary may require. 
(3) AMOUNT
OF
GRANT.—The amount of a 
grant to a non-profit hospital or clinic under para-
graph (1) shall equal 15 percent of the amount of 
the qualified medical malpractice insurance expendi-
tures of the hospital or clinic for the year involved. 
(4) QUALIFIED MEDICAL MALPRACTICE INSUR-
ANCE EXPENDITURE.—In this subsection, the term 
‘‘qualified medical malpractice insurance expendi-
ture’’ means so much of any professional insurance 
premium, surcharge, payment, or other cost or ex-
pense required as a condition of State licensure 
which is incurred by a non-profit hospital or clinic 
in a year for the sole purpose of providing or fur-
nishing general medical malpractice liability insur-
ance for such hospital or clinic as does not exceed 
twice the Statewide average of such costs for simi-
larly situated hospitals or clinics. 
(5) HURRICANE KATRINA-AFFECTED AREA.—In 
this subsection, the term ‘‘Hurricane Katrina-af-
fected area’’ means an area in a county or parish in 
Alabama, Louisiana, or Mississippi, for which a 
major disaster has been declared in accordance with 
section 401 of the Robert T. Stafford Disaster Relief 
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and Emergency Assistance Act (42 U.S.C. 5170) as 
a result of Hurricane Katrina. 
(6) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
this subsection such sums as may be necessary for 
each of fiscal years 2005 and 2006. 
(e) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45N. Credit for expenditures by health professionals in Hurricane 
Katrina-affected area for medical professional malpractice in-
surance.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures incurred on or 
after August 29, 2005, in taxable years ending after such 
date. 
SEC. 103. DEDUCTION FOR PREMIUMS OF PHYSICIANS IN 
HURRICANE KATRINA-AFFECTED AREA FOR 
MEDICAL LIABILITY INSURANCE FOR HIGH 
RISK SPECIALTIES. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
itemized deductions for individuals and corporations) is 
amended by adding at the end the following new section: 
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‘‘SEC. 199A. DEDUCTION FOR PREMIUMS OF PHYSICIANS IN 
HURRICANE KATRINA-AFFECTED AREA FOR 
MEDICAL LIABILITY INSURANCE FOR HIGH 
RISK SPECIALTIES. 
‘‘(a) IN GENERAL.—In the case of a physician whose 
medical practice is located in the Hurricane Katrina-af-
fected area and is in a high risk specialty, there shall be 
allowed as a deduction from gross income for the taxable 
year an amount equal to 125 percent of the aggregate pre-
miums paid for medical liability insurance with respect to 
such specialty for such taxable year. 
‘‘(b) HIGH RISK SPECIALTY.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, a specialty is a high risk specialty for a taxable 
year if, for the calendar year in which the taxable 
year begins, the average premiums for medical liabil-
ity insurance with respect to such specialty are equal 
to or greater than 67 percent of the average pre-
miums for medical liability insurance for all special-
ties for such calendar year, based on a weighted av-
erage of the number of physicians practicing in each 
specialty. 
‘‘(2) SPECIALTIES TAKEN INTO ACCOUNT.—For 
purposes of paragraph (1), the Secretary, in con-
sultation with the Secretary of Health and Human 
Services and appropriate professional organizations, 
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shall determine the specialties to be taken into ac-
count for purposes of paragraph (1) and shall con-
sider those specialities for which a payment may be 
made under section 1886(h) of the Social Security 
Act. In making such determination, the Secretary 
shall provide for an appropriate treatment of sub-
specialties. 
‘‘(3) PUBLICATION OF SPECIALITIES.—The Sec-
retary shall publish the high risk specialities. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) HURRICANE KATRINA-AFFECTED AREA.— 
The term ‘Hurricane Katrina-affected area’ means 
an area in a county or parish in Alabama, Lou-
isiana, or Mississippi, for which a major disaster has 
been declared in accordance with section 401 of the 
Robert T. Stafford Disaster Relief and Emergency 
Assistance Act as a result of Hurricane Katrina. 
‘‘(2) PHYSICIAN.—The term ‘physician’ has the 
meaning given such term by section 1861(r)(1) of 
the Social Security Act. 
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) MEDICAL
PRACTICE
SPANNING
MORE 
THAN 1 SPECIALTY.—In the case of a medical prac-
tice a portion of which is in a high risk specialty, the 
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portion of the premiums paid for medical liability in-
surance that may be taken into account under sub-
section (a) shall be determined under regulations 
prescribed by the Secretary. 
‘‘(2) GROUP
PRACTICE, ETC.—Under regula-
tions prescribed by the Secretary, the deduction al-
lowed by this section shall be allowed in case of a 
group practice or health care facility which is a C 
corporation in the manner prescribed by the Sec-
retary. 
‘‘(3) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion shall be allowed under any other provision of 
this chapter for any amount for which a deduction 
is allowed under this section. 
‘‘(e) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2006.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of such Code 
is amended by adding at the end the following new item: 
‘‘Sec. 199A. Deduction for premiums of physicians in Hurricane Katrina-af-
fected area for medical liability insurance for high risk special-
ties.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending on or after 
August 29, 2005. 
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SEC. 104. DEDUCTION FOR PREMIUMS FOR MEDICAL LI-
ABILITY INSURANCE FOR PRACTICES IN HUR-
RICANE KATRINA-AFFECTED AREA SERVING 
MEDICALLY UNDERSERVED COMMUNITIES. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
itemized deductions for individuals and corporations) is 
amended by adding at the end the following new section: 
‘‘SEC. 199B. DEDUCTION FOR PREMIUMS FOR MEDICAL LI-
ABILITY INSURANCE FOR PRACTICES IN HUR-
RICANE KATRINA-AFFECTED AREA SERVING 
MEDICALLY UNDERSERVED COMMUNITIES. 
‘‘(a) IN GENERAL.—In the case of a physician whose 
medical practice is located in the Hurricane Katrina-af-
fected area and serves medically underserved communities, 
there shall be allowed as a deduction from gross income 
for the taxable year an amount equal to 125 percent of 
the aggregate premiums paid for medical liability insur-
ance with respect to such practice for such taxable year. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) HURRICANE KATRINA-AFFECTED AREA.— 
The term ‘Hurricane Katrina-affected area’ means 
an area in a county or parish in Alabama, Lou-
isiana, or Mississippi, for which a major disaster has 
been declared in accordance with section 401 of the 
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Robert T. Stafford Disaster Relief and Emergency 
Assistance Act as a result of Hurricane Katrina. 
‘‘(2) MEDICALLY UNDERSERVED COMMUNITY.— 
The term ‘medically underserved community’ means 
a medically underserved community (as defined by 
section 799B of the Public Health Service Act) that 
has been designated under one of the categories 
specified in such section for a calendar year in which 
the taxable year of the physician begins. 
‘‘(3) PHYSICIAN.—The term ‘physician’ has the 
meaning given such term by section 1861(r)(1) of 
the Social Security Act. 
‘‘(c) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) MEDICAL
PRACTICE
SPANNING
MORE 
THAN 1 COMMUNITY.—In the case of a medical prac-
tice a portion of which serves a medically under-
served community, the portion of the premiums paid 
for medical liability insurance that may be taken 
into account under subsection (a) shall be deter-
mined under regulations prescribed by the Secretary. 
‘‘(2) GROUP
PRACTICE, ETC.—Under regula-
tions prescribed by the Secretary, the deduction al-
lowed by this section shall be allowed in case of a 
group practice or health care facility which is a C 
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corporation in the manner prescribed by the Sec-
retary. 
‘‘(3) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion shall be allowed under any other provision of 
this chapter for any amount for which a deduction 
is allowed under this section. 
‘‘(4) ELECTION.—A physician may elect wheth-
er to take a deduction under this section or under 
section 199A. 
‘‘(d) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2006.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of such Code 
is amended by adding at the end the following new item: 
‘‘Sec. 199B. Deduction for premiums for medical liability insurance for practices 
in Hurricane Katrina-affected area serving medically under-
served communities.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending on or after 
August 29, 2005. 
SEC. 105. GRANTS AND CONTRACTS REGARDING HEALTH 
PROVIDER SHORTAGES. 
Subpart I of part D of title III of the Public Health 
Service Act (42 U.S.C. 254b et seq.) is amended by adding 
at the end the following: 
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‘‘SEC. 330M. GRANTS TO HEALTH PROVIDERS IN HURRI-
CANE KATRINA-AFFECTED AREA FOR COSTS 
OF MEDICAL MALPRACTICE INSURANCE. 
‘‘(a) IN GENERAL.—The Secretary, acting through 
the Administrator of the Health Resources and Services 
Administration, may make awards of grants or contracts 
to health providers in the Hurricane Katrina-affected area 
to assist the providers with the costs of maintaining med-
ical malpractice insurance for providing health services in 
such area. 
‘‘(b) REQUIREMENT.—In accordance with such cri-
teria as the Secretary may establish, awards under sub-
section (a) may be made to health providers only if such 
providers agree to provide health services (or to continue 
providing health services, as the case may be) in the Hur-
ricane Katrina-affected area for the period during which 
payments under the awards are made to the health pro-
viders. 
‘‘(c) DEFINITIONS.—For purposes of this section: 
‘‘(1) The term ‘health providers’ means physi-
cians and other health professionals, and organiza-
tions that provide health services (including hos-
pitals, clinics, and group practices), that meet appli-
cable legal requirements to provide the health serv-
ices involved. 
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‘‘(2) The term ‘Hurricane Katrina-affected 
area’ means an area in a county or parish in Ala-
bama, Louisiana, or Mississippi, for which a major 
disaster has been declared in accordance with section 
401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5170) as a re-
sult of Hurricane Katrina.’’. 
TITLE 
II—REBUILDING 
PIPE-
LINES 
OF 
PROVIDERS 
IN 
MEDICALLY NEEDY AND UN-
DERSERVED AREAS AND COM-
MUNITIES 
SEC. 201. AMENDMENT TO THE PUBLIC HEALTH SERVICE 
ACT. 
The Public Health Service Act (42 U.S.C. 201 et 
seq.) is amended by adding at the end the following: 
‘‘TITLE 
XXIX—STRENGTHENING 
HEALTH INSTITUTIONS THAT 
PROVIDE HEALTH CARE TO 
MINORITY POPULATIONS 
‘‘Subtitle A—General Provisions 
‘‘SEC. 2901. PAYMENTS TO HEALTH CARE FACILITIES. 
‘‘(a) IN GENERAL.—The Secretary, with the approval 
of the Health Safety Net Infrastructure Trust Fund 
Board of Trustees described in section 2904(d) (hereafter 
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in this subtitle referred to as the ‘Trust Fund Board’), 
shall make payments, from amounts in the Health Safety 
Net Infrastructure Trust Fund established under section 
2904(a) (hereafter in this title referred to as the ‘Trust 
Fund’), for capital financing assistance to eligible health 
care facilities whose applications for assistance have been 
approved under this title. 
‘‘(b) GENERAL ELIGIBILITY REQUIREMENTS FOR AS-
SISTANCE.— 
‘‘(1) ELIGIBLE HEALTH CARE FACILITIES DE-
SCRIBED.—A health care facility shall be generally 
eligible for capital financing assistance under this 
title if the health care facility is located in the Hur-
ricane Katrina-affected area and— 
‘‘(A) receives an additional payment under 
section 1886(d)(5)(F) of the Social Security 
Act and is described in clause (i)(II) or clause 
(vii)(I) of such section, or is deemed a dis-
proportionate share hospital under a State plan 
for medical assistance under title XIX of the 
Social Security Act on the basis described in 
section 1923(b)(1) of such Act; 
‘‘(B) is a hospital which meets the criteria 
for designation by the Secretary as an essential 
access 
community 
hospital 
under 
section 
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1820(i)(1) of such Act or a rural primary care 
hospital under section 1820(i)(2) of such Act 
(whether or not such hospital is actually des-
ignated under such section); 
‘‘(C) as of August 29, 2005, was a Feder-
ally qualified health center (as defined in sec-
tion 1905(l)(2)(B) of such Act); 
‘‘(D) is a hospital which— 
‘‘(i) is a sole community provider; or 
‘‘(ii) has closed within the preceding 
12 months; 
‘‘(E) is a facility which— 
‘‘(i) provides service to ill or injured 
individuals prior to the transportation of 
such individuals to a hospital or provides 
inpatient care to individuals needing such 
care for a period not longer than 96 hours; 
‘‘(ii) is located in a county (or equiva-
lent unit of local government) with fewer 
than 6 residents per square mile or is lo-
cated more than 35 road miles from the 
nearest hospital; 
‘‘(iii) permits a physician assistant or 
nurse practitioner to admit and treat pa-
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tients under the supervision of a physician 
not present in such facility; and 
‘‘(iv) has obtained a waiver from the 
Secretary permitting the facility to partici-
pate in the medicare program under title 
XVIII of the Social Security Act; or 
‘‘(F) is a hospital that the Secretary other-
wise determines to be an appropriate recipient 
of assistance under this title on the basis of the 
existence of a patient care operating deficit, a 
demonstrated inability to secure or repay fi-
nancing for a qualifying project on reasonable 
terms, or such other criteria as the Secretary 
considers appropriate. 
‘‘(2) OWNERSHIP REQUIREMENTS.—In order to 
be eligible for assistance under this title, a health 
care facility (other than a health care facility de-
scribed in subparagraphs (B) or (E) of paragraph 
(1)) must— 
‘‘(A) be owned or operated by a unit of 
State or local government; 
‘‘(B) be a quasi-public corporation, defined 
as a private, nonprofit corporation or public 
benefit corporation which is formally granted 
one or more governmental powers by legislative 
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action through (or is otherwise partially funded 
by) the State legislature, city or county council; 
‘‘(C) be a private nonprofit health care fa-
cility which has contracted with, or is otherwise 
funded by, a governmental agency to provide 
health care services to low income individuals 
not eligible for assistance under title XVIII or 
title XIX of the Social Security Act, where rev-
enue from such contracts constitute at least 10 
percent of the facility’s operating revenues over 
the prior 3 fiscal years; or 
‘‘(D) be a nonprofit small rural health care 
facility (as determined by the Secretary). 
‘‘(3) PRIORITY.—In making payments under 
this section, the Secretary shall give priority to eligi-
ble health care entities that are federally qualified 
health centers (as defined in section 1905(l)(2)(B) 
of the Social Security Act), or other similar entities 
at least 50 percent of the patients of which are mi-
nority or low-income individuals. 
‘‘(c) MEETING ADDITIONAL SPECIFIC CRITERIA.— 
Health care facilities that are generally eligible for assist-
ance under this title under subsection (b) may apply for 
the specific programs described in this title and must meet 
any additional criteria for participation in such programs. 
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