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tion to any other site inspection that the Secretary
would otherwise conduct with regard to an applica-
ble provider.
‘‘(2) APPLICABLE PROVIDER DEFINED.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), in this section, the term ‘ap-
plicable provider’ means—
‘‘(i) a supplier of durable medical
equipment (including items described in
section 1834(a)(13));
‘‘(ii) 
a 
supplier 
of 
prosthetics,
orthotics, or supplies (including items de-
scribed in paragraphs (8) and (9) of sec-
tion 1861(s));
‘‘(iii) a community mental health cen-
ter; or
‘‘(iv) any other provider group, as de-
termined by the Secretary.
‘‘(B) EXCEPTION.—In this section, the
term ‘applicable provider’ does not include—
‘‘(i) a physician that provides durable
medical equipment (as described in sub-
paragraph (A)(i)) or prosthetics, orthotics,
or supplies (as described in subparagraph
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(A)(ii)) to an individual as incident to an
office visit by such individual; or
‘‘(ii) a hospital that provides durable
medical equipment (as described in sub-
paragraph (A)(i)) or prosthetics, orthotics,
or supplies (as described in subparagraph
(A)(ii)) to an individual as incident to an
emergency room visit by such individual.
‘‘(b) STANDARDS
AND REQUIREMENTS.—In con-
ducting the site inspection pursuant to subsection (a), the
Secretary shall ensure that the site being inspected is in
full compliance with all the conditions and standards of
participation and requirements for obtaining medicare bill-
ing privileges under this title.
‘‘(c) TIME.—The Secretary shall conduct the site in-
spection for an applicable provider prior to the issuance
of a provider number to such provider.
‘‘(d) TIMELY REVIEW.—The Secretary shall provide
for procedures to ensure that the site inspection required
under this section does not unreasonably delay the
issuance of a provider number to an applicable provider.’’.
(b) BACKGROUND CHECKS.—Title XVIII of the So-
cial Security Act (42 U.S.C. 1395 et seq.) (as amended
by subsection (a)) is amended by adding at the end the
following:
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‘‘BACKGROUND CHECKS
‘‘SEC. 1898. (a) BACKGROUND CHECK REQUIRED.—
Except as provided in subsection (b), the Secretary shall
conduct a background check on any individual or entity
that applies to the Secretary for a provider number for
the purpose of furnishing any item or service under this
title. In performing the background check, the Secretary
shall—
‘‘(1) conduct the background check before
issuing a provider number to an individual or entity;
‘‘(2) include a search of criminal records in the
background check; and
‘‘(3) provide for procedures that ensure the
background check does not unreasonably delay the
issuance of a provider number to an eligible indi-
vidual or entity.
‘‘(b) USE OF STATE LICENSING PROCEDURE.—The
Secretary may use the results of a State licensing proce-
dure as a background check under subsection (a) if the
State licensing procedure meets the requirements of sub-
section (a).
‘‘(c) ATTORNEY GENERAL REQUIRED TO PROVIDE
INFORMATION.—
‘‘(1) IN GENERAL.—Upon request of the Sec-
retary, the Attorney General shall provide the crimi-
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nal background check information referred to in sub-
section (a)(2) to the Secretary.
‘‘(2) RESTRICTION ON USE OF DISCLOSED IN-
FORMATION.—The Secretary may only use the infor-
mation disclosed under subsection (a) for the pur-
pose of carrying out the Secretary’s responsibilities
under this title.
‘‘(d) REFUSAL TO ISSUE PROVIDER NUMBER.—
‘‘(1) AUTHORITY.—In addition to any other
remedy available to the Secretary, the Secretary may
refuse to issue a provider number to an individual
or entity if the Secretary determines, after a back-
ground check conducted under this section, that
such individual or entity has a history of acts that
indicate issuance of a provider number to such indi-
vidual or entity would be detrimental to the best in-
terests of the program or program beneficiaries.
Such acts may include, but are not limited to—
‘‘(A) any bankruptcy;
‘‘(B) any act resulting in a civil judgment
against such individual or entity; or
‘‘(C) any felony conviction under Federal
or State law.
‘‘(2) REPORTING OF REFUSAL TO ISSUE PRO-
VIDER NUMBER TO THE HEALTH INTEGRITY PRO-
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TECTION
DATABASE
(HIPDB).—A determination to
refuse to issue a provider number to an individual
or entity as a result of a background check con-
ducted under this section shall be reported to the
health integrity protection database established
under section 1128E in accordance with the proce-
dures for reporting final adverse actions taken
against a health care provider, supplier, or practi-
tioner under that section.’’.
(c) REGULATIONS; EFFECTIVE DATE.—
(1) REGULATIONS.—Not later than 1 year after
the date of enactment of this Act, the Secretary of
Health and Human Services shall promulgate such
regulations as are necessary to implement the
amendments made by subsections (a) and (b).
(2) EFFECTIVE DATE.—The amendments made
by subsections (a) and (b) shall apply to applications
received by the Secretary of Health and Human
Services on or after January 1, 2000.
(d) USE
OF
MEDICARE
INTEGRITY
PROGRAM
FUNDS.—The Secretary of Health and Human Services
may use funds appropriated or transferred for purposes
of carrying out the medicare integrity program established
under section 1893 of the Social Security Act (42 U.S.C.
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1395ddd) to carry out the provisions of sections 1897 and
1898 of that Act (as added by subsections (a) and (b)).
SEC. 3. REGISTRATION OF BILLING AGENCIES.
(a) REGISTRATION OF BILLING AGENCIES AND INDI-
VIDUALS.—Title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) (as amended by section 2(b)) is
amended by adding at the end the following:
‘‘REGISTRATION OF BILLING AGENCIES AND INDIVIDUALS
‘‘SEC. 1899. (a) REGISTRATION.—The Secretary
shall establish procedures for the registration of all appli-
cable persons.
‘‘(b) REQUIRED APPLICATION.—Each applicable per-
son shall submit a registration application to the Secretary
at such time, in such manner, and accompanied by such
information as the Secretary may require.
‘‘(c) IDENTIFICATION NUMBER.—If the Secretary ap-
proves an application submitted under subsection (b), the
Secretary shall assign a unique identification number to
the applicable person.
‘‘(d) REQUIREMENT.—Every claim for reimburse-
ment under this title that is compiled and submitted by
an applicable person shall contain the identification num-
ber that is assigned to the applicable person pursuant to
subsection (c).
‘‘(e) TIMELY REVIEW.—The Secretary shall provide
for procedures that ensure the timely consideration and