Rebasing of the calculation of payments for sole community hospitals

(a) Rebasing permitted Section 1886(b)(3) of the Social Security Act (42 U.S.C. 1395ww(b)(3)) is amended by adding at the end the following new subparagraph: (M) (i) For cost reporting periods beginning on or after October 1, 2025, in the case of a sole community hospital there shall be substituted for the amount otherwise determined under subsection (d)(5)(D)(i) of this section, if such substitution results in a greater amount of payment under this section for the hospital, the subparagraph (M) rebased target amount. (ii) For purposes of this subparagraph, the term subparagraph (M) rebased target amount has the meaning given the term target amount in subparagraph (C), except that— (I) there shall be substituted for the base cost reporting period the 12-month cost reporting period beginning during fiscal year 2016; (II) any reference in subparagraph (C)(i) to the first cost reporting period described in such subparagraph is deemed a reference to the first cost reporting period beginning on or after October 1, 2025; and (III) the applicable percentage increase shall only be applied under subparagraph (C)(iv) for discharges occurring on or after October 1, 2025.. (b) Conforming amendments Section 1886(b)(3) of the Social Security Act (42 U.S.C. 1395ww(b)(3)) is amended— (1) in subparagraph (C), in the matter preceding clause (i), by striking subparagraphs (I) and (L) and inserting subparagraphs (I), (L), and (M); and (2) in subparagraph (I)(i), in the matter preceding subclause (I), by striking subparagraph (L) and inserting subparagraphs (L) and (M).