Rebasing of the calculation of payments for Medicare-dependent hospitals

Section 1886(b)(3) of the Social Security Act (42 U.S.C. 1395ww(b)(3)), as amended by section 2, is amended— (1) in subparagraph (D), by striking subparagraph (K) and inserting subparagraphs (K) and (N); and (2) by adding at the end the following new subparagraph: (N) (i) With respect to discharges occurring on or after October 1, 2025, in the case of a medicare-dependent, small rural hospital, for purposes of applying subparagraph (D)— (I) there shall be substituted for the base cost reporting period described in subparagraph (D)(i) the 12-month cost reporting period beginning during fiscal year 2016; and (II) any reference in such subparagraph 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. (ii) This subparagraph shall only apply to a hospital if the substitution described in clause (i)(I) results in an increase in the target amount under subparagraph (D) for the hospital..