117 STAT. 2268
PUBLIC LAW 108–173—DEC. 8, 2003 or (2) from funds appropriated for fiscal year 2005 and subsequent fiscal years— ‘‘(A) CONSULTATION WITH THE STATE HOSPITAL ASSOCIATION AND RURAL HOSPITALS ON THE MOST APPROPRIATE WAYS TO USE GRANTS.—A State shall consult with the hospital
association of such State and rural hospitals located in such State on the most appropriate ways to use the funds under such grant. ‘‘(B) LIMITATION ON USE OF GRANT FUNDS FOR ADMINISTRATIVE EXPENSES.—A State may not expend more than the lesser of— ‘‘(i) 15 percent of the amount of the grant for administrative expenses; or ‘‘(ii) the State’s federally negotiated indirect rate for administering the grant. ‘‘(5) USE OF FUNDS FOR FEDERAL ADMINISTRATIVE EXPENSES.—Of the total amount appropriated for grants under paragraphs (1) and (2) for a fiscal year (beginning with fiscal year 2005), up to 5 percent of such amount shall be available to the Health Resources and Services Administration for purposes of administering such grants.’’. (g) AUTHORITY TO ESTABLISH PSYCHIATRIC AND REHABILITATION DISTINCT PART UNITS.— (1) IN GENERAL.—Section 1820(c)(2) (42 U.S.C. 1395i– 4(c)(2)) is amended by adding at the end the following: ‘‘(E) AUTHORITY TO ESTABLISH PSYCHIATRIC AND REHABILITATION DISTINCT PART UNITS.— ‘‘(i) IN GENERAL.—Subject to the succeeding provisions of this subparagraph, a critical access hospital may establish— ‘‘(I) a psychiatric unit of the hospital that is a distinct part of the hospital; and ‘‘(II) a rehabilitation unit of the hospital that is a distinct part of the hospital, if the distinct part meets the requirements (including conditions of participation) that would otherwise apply to the distinct part if the distinct part were established by a subsection (d) hospital in accordance with the matter following clause (v) of section 1886(d)(1)(B), including any regulations adopted by the Secretary under such section. ‘‘(ii) LIMITATION ON NUMBER OF BEDS.—The total number of beds that may be established under clause (i) for a distinct part unit may not exceed 10. ‘‘(iii) EXCLUSION OF BEDS FROM BED COUNT.—In determining the number of beds of a critical access hospital for purposes of applying the bed limitations referred to in subparagraph (B)(iii) and subsection (f), the Secretary shall not take into account any bed established under clause (i). ‘‘(iv) EFFECT OF FAILURE TO MEET REQUIREMENTS.— If a psychiatric or rehabilitation unit established under clause (i) does not meet the requirements described in such clause with respect to a cost reporting period, no payment may be made under this title to the hospital for services furnished in such unit during such period. Payment to the hospital for services furnished
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