Directs the Secretary of Health and Human Services to establish demonstration programs in each of 20 hospitals under which each hospital receives Medicare (title XVIII of the Social Security Act) reimbursement of its reasonable costs incurred pursuant to a written agreement with an educational institution to provide training to undergraduates as part of an approved education program that leads to a bachelor's degree in nursing. Requires the Secretary to report to the Congress by January 1, 1993, on the demonstration programs and the supply and characteristics of nurses trained under such programs.
Amends the Medicare program to state that nursing education programs operated by corporations controlled by, or under common control with, the hospital may be treated as approved educational activities of such hospital.
B37 4-19-89 [update] HR 2032 IH 101st CONGRESS 1st Session H. R. 2032 To direct the Secretary of Health and Human Services to provide for demonstration programs for joint nursing undergraduate education under which the costs incurred by a hospital under such a program shall be allowable as reasonable costs under title XVIII of the Social Security Act, and to clarify such title to permit a nursing education program operated by a corporation under common control with a hospital to be treated as approved educational activities of such hospital. IN THE HOUSE OF REPRESENTATIVES April 18, 1989 Mr. DONNELLY introduced the following bill; which was referred jointly to the Committees on Ways and Means and Energy and Commerce A BILL To direct the Secretary of Health and Human Services to provide for demonstration programs for joint nursing undergraduate education under which the costs incurred by a hospital under such a program shall be allowable as reasonable costs under title XVIII of the Social Security Act, and to clarify such title to permit a nursing education program operated by a corporation under common control with a hospital to be treated as approved educational activities of such hospital. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. TREATMENT OF CERTAIN NURSING EDUCATION PROGRAMS. (a) DEMONSTRATION OF JOINT NURSING UNDERGRADUATE EDUCATION PROGRAMS- The Secretary of Health and Human Services shall provide for demonstration programs under this subsection in each of 20 hospitals for cost reporting periods beginning on or after October 1, 1989, and before October 1, 1994. (b) TREATMENT AS REASONABLE COSTS- Under each demonstration project, subject to subsection (d), the reasonable cost incurred by a hospital pursuant to a written agreement with an educational institution for the activities described in subsection (c) conducted as part of an approved educational program that leads to a bachelor's degree in nursing, shall be allowable as reasonable costs under title XVIII of the Social Security Act and reimbursed under such title on the same basis as if they were allowable direct costs of a hospital operated approved educational program (other than an approved graduate medical education program). (c) DESCRIPTION OF ACTIVITIES- The activities referred to in subsection (b) are the activities for which the reasonable costs of conducting such activities are allowable under title XVIII of the Social Security Act if conducted under a hospital-operated approved educational program (other than an approved graduate medical education program), but only to the extent such activities-- (1) are directly related to the operation of the educational program conducted pursuant to the written agreement between the hospital and the educational institution; and (2) take place in a year of an undergraduate nursing program during or after which clinical training has begun. (d) LIMITATION ON AMOUNT- The amount paid under a demonstration program under this section to a hospital for a cost reporting period may not exceed $200,000. (e) REPORTS- The Secretary shall report to the Committees on Ways and Means, Energy and Commerce, and Appropriations of the United States House of Representatives, and the Committees on Finance and Appropriations of the United States Senate, by not later than January 1, 1993, on the demonstration programs conducted under this section and on the supply and characteristics of nurses trained under such program. SEC. 2. TREATMENT OF COMMONLY CONTROLLED NURSING EDUCATION PROGRAMS. (a) Section 1886(a)(4) of the Social Security Act (42 U.S.C. 1395ww(a)(4)) is amended by adding at the end the following: `For purposes of the preceding sentence, the term `approved educational activities' shall include nursing programs for which the hospital incurs substantial direct costs and which are operated directly by the hospital or by corporations controlled by, or under common control with, the hospital. If the hospital and the corporation operating a nursing program under its control share common board members, such nursing program is operated directly by the hospital for purposes of this paragraph.'. (b) EFFECTIVE DATE- (1) Except as provided in paragraph (2), the amendment made by subsection (a) shall apply to hospital cost reporting periods beginning on or after October 1, 1989. (2) In the case of a hospital-- (A) described in section 8411(b) of the Technical and Miscellaneous Revenue Act of 1988, or (B) that could have been described in such section but for the fact that it was not awarded demonstration authority under such section, the amendment made by subsection (a) shall apply to hospital cost reporting periods beginning after the date on which such hospital was no longer operating under a waiver of the normal principles of medicare reimbursement (within the meaning of section 402 of the Social Security Amendments of 1967 and section 222 of the Social Security Amendments of 1972).
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Health.
Referred to the Subcommittee on Health and the Environment.
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