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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 1990, 2215, 2462         PRINTER'S NO. 2493

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1589 Session of 2005


        INTRODUCED BY MAJOR, HERMAN, SONNEY, BAKER, HANNA, STERN,
           CAUSER, PICKETT, RAPP AND FEESE, MAY 12, 2005

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JULY 2, 2005

                                     AN ACT

     1  Amending the act of June 30, 2003 (P.L.15, No.7), entitled "An
     2     act designating political subdivisions as rural areas for
     3     purposes of Medicare hospital service payments," further
     4     providing for designation of hospitals.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Section 2 of the act of June 30, 2003 (P.L.15,
     8  No.7), known as the Medicare Hospital Service Payment
     9  Designation Act, is amended to read:
    10  Section 2.  Designation.
    11     For purposes of payments to:                                   <--
    12         (1)  hospitals for inpatient or outpatient hospital
    13     services under section 1886 of the Social Security Act (49
    14     Stat. 620, 42 U.S.C. § 1395ww)[,];
    15         (2)  hospitals designated as Medicare-dependent hospitals
    16     as of April 30, 2002, or Critical Access hospitals as of
    17     [September 30, 2000,] December 31, 2005;
    18         (3)  hospitals located in a census tract with rural-urban


     1     commuting area codes 4 through 10 established by the United
     2     States Department of Agriculture; and
     3         (4)  hospitals with 50 or fewer beds that serve at a
     4     minimum 70% Medicare patient population and demonstrate
     5     service to individuals from federally designated health
     6     professional shortage areas; including, but not limited to,    <--
     7     Philipsburg Area Hospital and Mid-Valley Hospital;
     8  are hereby designated as rural hospitals pursuant to section
     9  1886(d)(8)(E)(ii)(II) of the Social Security Act (42 U.S.C. §
    10  1395ww(d)(8)(E)(ii)(II)).
    11     FOR PURPOSES OF PAYMENTS TO HOSPITALS FOR INPATIENT OR         <--
    12  OUTPATIENT HOSPITAL SERVICES UNDER SECTION 1886 OF THE SOCIAL
    13  SECURITY ACT (49 STAT. 620, 42 U.S.C. § 1395WW), [HOSPITALS
    14  DESIGNATED AS MEDICARE-DEPENDENT HOSPITALS AS OF SEPTEMBER 30,
    15  2000,] THE FOLLOWING ARE HEREBY DESIGNATED AS RURAL HOSPITALS
    16  PURSUANT TO SECTION 1886(D)(8)(E)(II)(II) OF THE SOCIAL SECURITY
    17  ACT (42 U.S.C. § 1395WW(D)(8)(E)(II)(II))[.]:
    18         (1)  HOSPITALS DESIGNATED AS MEDICARE-DEPENDENT HOSPITALS
    19     AS OF APRIL 30, 2002, OR CRITICAL ACCESS HOSPITALS AS OF
    20     DECEMBER 31, 2005;
    21         (2)  HOSPITALS LOCATED IN A CENSUS TRACT WITH RURAL-URBAN
    22     COMMUTING AREA CODES 4 THROUGH 10 ESTABLISHED BY THE UNITED
    23     STATES DEPARTMENT OF AGRICULTURE; AND
    24         (3)  HOSPITALS WITH 50 OR FEWER BEDS THAT SERVE AT A
    25     MINIMUM 70% MEDICARE PATIENT POPULATION AND DEMONSTRATE
    26     SERVICE TO INDIVIDUALS FROM FEDERALLY DESIGNATED HEALTH
    27     PROFESSIONAL SHORTAGE AREAS.
    28     Section 2.  This act shall take effect immediately.


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