Sec. 2. Designation for territorial safety net hospitals

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Section 1861 of the Social Security Act ( 42 U.S.C. 1395x ) is amended by adding at the end the following new subsection: The term territorial safety net hospital means a hospital (as defined in subsection (e)) that is located in the Northern Mariana Islands, American Samoa, Guam, or the Virgin Islands. The term inpatient territorial safety net hospital services means items and services, furnished to an inpatient of a territorial safety net hospital by such facility, that would be inpatient hospital services if furnished to an inpatient of a hospital by a hospital.

The term outpatient territorial safety net hospital services means medical and other health services furnished by a territorial safety net hospital on an outpatient basis. . Section 1814 of the Social Security Act ( 42 U.S.C. 1395f ) is amended— in subsection (b), by inserting other than a territorial safety net hospital providing inpatient territorial safety net hospital services, after critical access hospital providing inpatient critical access hospital services, ; and by adding at the end the following new subsection:

The amount of payment under this part for inpatient territorial safety net hospital services is equal to 101 percent of the reasonable costs of the territorial safety net hospital in providing such services. . Section 1812(a)(1) of the Social Security Act ( 42 U.S.C. 1395d(a)(1) ) is amended by striking or inpatient critical access hospital services and inserting , inpatient critical access hospital services, or inpatient territorial safety net hospital services . Section 1813 of the Social Security Act ( 42 U.S.C. 1395e ) is amended— in subsection (a)(1), by striking or inpatient critical access hospital services each place it appears and inserting , inpatient critical access hospital services, or inpatient territorial safety net hospital services ; and in subsection (b)(3)— in subparagraph (A), by striking or inpatient critical access hospital services and inserting , inpatient critical access hospital services, or inpatient territorial safety net hospital services ; and in subparagraph (B), by inserting , inpatient territorial safety net hospital services, after inpatient critical access hospital services .

Section 1815(e)(2) of the Social Security Act ( 42 U.S.C. 1395g(e)(2) ) is amended— in subparagraph (D), by striking and at the end; in subparagraph (E), by inserting and after the semicolon at the end; and by adding at the end the following new subparagraph: inpatient territorial safety net hospital services; . Section 1816(c)(2)(C) of the Social Security Act ( 42 U.S.C. 1395h(c)(2)(C) ) is amended by inserting territorial safety net hospital, after critical access hospital, .

Section 1834 of the Social Security Act ( 42 U.S.C. 1395m ) is amended by adding at the end the following new subsection: The amount of payment for outpatient territorial safety net hospital services of a territorial safety net hospital is equal to 101 percent of the reasonable costs of the hospital in providing such services, unless the hospital makes the election under paragraph (2). A territorial safety net hospital may elect to be paid for outpatient territorial safety net hospital services amounts equal to the sum of the following, less the amount that such hospital may charge as described in section 1866(a)(2)(A):

With respect to facility services, not including any services for which payment may be made under subparagraph (B), 101 percent of the reasonable costs of the territorial safety net hospital in providing such services. With respect to professional services otherwise included within outpatient territorial safety net hospital services, 115 percent of such amounts as would otherwise be paid under this part if such services were not included in outpatient territorial safety net hospital services.

Subsections

(x)and

(y)of section 1833 shall not be taken into account in determining the amounts that would otherwise be paid pursuant to the preceding sentence. The Secretary may not require, as a condition for applying subparagraph

(B)with respect to a territorial safety net hospital, that each physician or other practitioner providing professional services in the hospital must assign billing rights with respect to such services, except that such subparagraph shall not apply to those physicians and practitioners who have not assigned such billing rights. The payment amounts under this subsection shall be determined without regard to the amount of the customary or other charge. No coinsurance, deductible, copayment, or other cost-sharing otherwise applicable under this part shall apply with respect to clinical diagnostic laboratory services furnished as an outpatient territorial safety net hospital service. Nothing in this title shall be construed as providing for payment for clinical diagnostic laboratory services furnished as part of outpatient territorial safety net hospital services, other than on the basis described in this subsection. For purposes of the preceding sentence and section 1861(nnn)(3), clinical diagnostic laboratory services furnished by a territorial safety net hospital shall be treated as being furnished as part of outpatient critical access services without regard to whether the individual with respect to whom such services are furnished is physically present in the territorial safety net hospital, or in a skilled nursing facility or a clinic (including a rural health clinic) that is operated by a territorial safety net hospital, at the time the specimen is collected. In determining the reasonable costs of outpatient territorial safety net hospital services under paragraphs

(1)and (2)(A), the Secretary shall recognize as allowable costs, amounts (as defined by the Secretary) for reasonable compensation and related costs for physicians, physician assistants, nurse practitioners, and clinical nurse specialists who are on-call (as defined by the Secretary) to provide emergency services but who are not present on the premises of the territorial safety net hospital involved, and are not otherwise furnishing services covered under this title and are not on-call at any other provider or facility. . Section 1832(a)(2) of the Social Security Act ( 42 U.S.C. 1395k(a)(2) ) is amended— in subparagraph (I), by striking ; and and inserting a semicolon; in subparagraph (J), by striking the period at the end and inserting ; and ; and by adding at the end the following new subparagraph: outpatient territorial safety net hospital services (as defined in section 1861(nnn)(3)). . Section 1833 of the Social Security Act ( 42 U.S.C. 1395l ) is amended— in subsection (a)— in paragraph (9), by striking ; and and inserting a semicolon; in paragraph (10), by striking the period at the end and inserting ; and ; and by inserting after paragraph

(10)the following new paragraph: in the case of outpatient territorial safety net hospital services, the amounts described in section 1834(aa). ; in subsection (h)(5)(A)(iii), by inserting territorial safety net hospital, after critical access hospital, ; in subsection (i)(1)(A), by inserting territorial safety net hospital, after critical access hospital, ; in subsection (l)(5)— in subparagraph (A), by inserting territorial safety net hospital, after critical access hospital, in each place it appears; and in subparagraph (B), by striking or critical access hospital in each place it appears and inserting , critical access hospital, or territorial safety net hospital in each such place; in subsection (r)— in paragraph (1), by inserting territorial safety net hospital, after critical access hospital ; and in paragraph (2), by striking or critical access hospital and inserting , critical access hospital, or territorial safety net hospital ; and in subsection (cc)(2), by adding at the end the following new subparagraph: Section 1834(aa), with respect to an outpatient territorial safety net hospital service. . Section 1834(l)(8) of the Social Security Act ( 42 U.S.C. 1395m(l)(8) ) is amended— in the heading, by inserting after and territorial safety net hospitals ; critical access hospitals in subparagraph (A), by inserting or a territorial safety net hospital (as defined in section 1861(nnn)) after (as defined in section 1861(mm)(1)) ; in subparagraph (B), by inserting or a territorial safety net hospital after critical access hospital ; and by amending the flush left text following subparagraph

(B)to read as follows: but only if the critical access hospital, territorial safety net hospital, or entity is the only provider or supplier of ambulance services that is located within a 35-mile drive of such critical access hospital or territorial safety net hospital. . Section 1128A(b)(1) of the Social Security Act (42 U.S.C. 1320a–7a(b)(1)) is amended by striking or a critical access hospital in each place it appears and inserting , critical access hospital, or territorial safety net hospital in each such place. Section 1128B(c) of the Social Security Act (42 U.S.C. 1320a–7b(c)) is amended by inserting territorial safety net hospital, after critical access hospital, . Section 1134 of the Social Security Act ( 42 U.S.C. 1320b–4 ) is amended in the matter preceding paragraph

(1)by striking or critical access hospitals in each place it appears and inserting , critical access hospitals, or territorial safety net hospitals in each such place. Section 1138 of the Social Security Act ( 42 U.S.C. 1320b–8 ) is amended by striking or critical access hospital in each place it appears and inserting , critical access hospital, or territorial safety net hospital in each such place. Section 1861(e) of the Social Security Act ( 42 U.S.C. 1395x(e) ) is amended in the flush left matter at the end by striking or a rural emergency hospital (as defined in subsection (kkk)(2)) and inserting , a rural emergency hospital (as defined in subsection (kkk)(2)), or a territorial safety net hospital (as defined in subsection (nnn)(1)) . Section 1861(u) of the Social Security Act ( 42 U.S.C. 1395x(u) ) is amended by inserting territorial safety net hospital, after critical access hospital, . Section 1861(v)(1)(S)(ii)(III) of the Social Security Act ( 42 U.S.C. 1395x(v)(1)(S)(ii)(III) ) is amended by striking or a critical access hospital (as defined in section 1861(mm)(1)) and inserting , a critical access hospital (as defined in section 1861(mm)(1)), or a territorial safety net hospital (as defined in subsection

(nnn)of such section) . Section 1861(w) of the Social Security Act ( 42 U.S.C. 1395x(w) ) is amended— in paragraph (1), by inserting territorial safety net hospital, after critical access hospital, ; and in paragraph (2), by striking or critical access hospital in each place it appears and inserting , critical access hospital, or territorial safety net hospital in each such place. Section 1861(tt) of the Social Security Act ( 42 U.S.C. 1395x(tt) ) is amended— in paragraph (1)(A), by striking or critical access hospital and inserting , critical access hospital, or territorial safety net hospital ; and in paragraph (2)(B), by striking or critical access hospital and inserting , critical access hospital, or territorial safety net hospital . Section 1862(a)(14) of the Social Security Act ( 42 U.S.C. 1395y(a)(14) ) is amended by striking or critical access hospital in each place it appears and inserting , critical access hospital, or territorial safety net hospital in each such place. Section 1864 of the Social Security Act ( 42 U.S.C. 1395aa ) is amended— in subsection (a), by inserting territorial safety net hospital, as defined in section 1861(nnn)(1), after a critical access hospital, as defined in section 1861(mm)(1), ; and by adding at the end the following new subparagraph: For purposes of this section, the term State means the 50 States and includes the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. . Section 1866(a) of the Social Security Act ( 42 U.S.C. 1395cc(a) ) is amended— in paragraph (1)— in subparagraph (F)(ii), by inserting territorial safety net hospitals, after critical access hospitals, ; in subparagraph (H), by striking and in the case of critical access hospitals which provide critical access hospital services and inserting , in the case of critical access hospitals which provide critical access hospital services, and in the case of territorial safety net hospitals which provide territorial safety net hospital services ; in subparagraph (I), by inserting territorial safety net hospital, after critical access hospital, in each place it appears; in subparagraph (N), by inserting territorial safety net hospital, after critical access hospital, in each place it appears; in subparagraph (T), by striking and critical access hospitals and inserting , critical access hospitals, and territorial safety net hospitals ; and in subparagraph (Y), by striking or critical access hospital each place it appears and inserting , critical access hospital, or territorial safety net hospital in each such place; and in paragraph (3)— in subparagraph (A), by inserting territorial safety net hospital, after critical access hospital, ; in subparagraph (B), by inserting territorial safety net hospital, after critical access hospital, in each place it appears; and in subparagraph (C)(ii)(II), by inserting territorial safety net hospitals, after critical access hospitals, in each place it appears. Section 1867(e)(5) of the Social Security Act ( 42 U.S.C. 1395dd(e)(5) ) is amended by inserting , territorial safety net hospital (as defined in section 1861(nnn)(1)), after (as defined in section 1861(mm)(1)) . Section 1883(a)(3) of the Social Security Act ( 42 U.S.C. 1395tt(a)(3) ) is amended by inserting or a territorial safety net hospital after critical access hospital . Section 1888(e)(6)(B) of the Social Security Act ( 42 U.S.C. 1395yy(e)(6)(B) ) is amended— in clause (i), by inserting or a territorial safety net hospital after critical access hospital ; and in clause (ii), by inserting or a territorial safety net hospital after critical access hospital . Section 1899B of the Social Security Act ( 42 U.S.C. 1395lll ) is amended— in subsection (c)(1)(E)— in clause (i), by striking or critical access hospital and inserting , critical access hospital, or territorial safety net hospital ; and in clause (ii), by inserting territorial safety net hospital, after critical access hospital, ; and in subsection (i)(1)— in the first sentence, by striking and critical access hospitals and inserting , critical access hospitals, and territorial safety net hospitals ; and in the third sentence, by inserting territorial safety net hospitals, after critical access hospitals, .

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