To improve the critical access hospital program.

1. Inserts new text at the end of section 405

   Inserts

   In S. 1 · Reported to Senate

   (B) Effective date and application.--The amendment made by subparagraph (A) shall take effect on the date of enactment of this Act and shall apply to grants awarded on or after such date and to grants awarded prior to such date to the extent that funds under such grants have not been obligated as of such date.

   Inserted: (g) Exclusion of Certain Beds from Bed Count and Removal of Barriers to Establishment of Distinct Part Units.--

   Inserted: (1) Exclusion of certain beds from bed count.--Section 1820(c)(2) (42 U.S.C. 1395i-4(c)(2)) is amended by adding at the end the following:

   Inserted: "(E) Exclusion of certain beds from bed count.--In determining the number of beds of a facility for purposes of applying the bed limitations referred to in subparagraph (B)(iii) and subsection (f), the Secretary shall not take into account any bed of a distinct part psychiatric or rehabilitation unit (described in the matter following clause (v) of section 1886(d)(1)(B)) of the facility, except that the total number of beds that are not taken into account pursuant to this subparagraph with respect to a facility shall not exceed 25.".

   Inserted: (2) Removing barriers to establishment of distinct part units by critical access hospitals.--Section 1886(d)(1)(B) (42 U.S.C. 195ww(d)(1)(B)) is amended by striking "a distinct part of the hospital (as defined by the Secretary)" in the matter following cause (v) and inserting "a distinct part (as defined by the Secretary) of the hospital or of a critical access hospital".

   Inserted: (3) Effective date.--The amendments made by this subsection shall apply to determinations with respect to distinct part unit status, and with respect to designations, that are made on or after October 1, 2003.

   Original wording

   At the end of section 405 add the following:

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As printed