Ill STAT. 360 PUBLIC LAW 105-33 —AUG. 5, 1997 CHAPTER 5—TAX TREATMENT OF HOSPITALS PARTICI- PATD^G IN PROVIDER-SPONSORED ORGANIZATIONS SEC. 4041. TAX TREATMENT OF HOSPITALS WHICH PARTICIPATE IN PROVIDER-SPONSORED ORGANIZATIONS. (a) IN GENERAL.—Section 501 of the Internal Revenue Code 26 USC 501. of 1986 (relating to exemption from tax on corporations, certain trusts, etc.) is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection: "(o) TREATMENT OF HOSPITALS PARTICIPATING IN PROVIDER- SPONSORED ORGANIZATIONS. —An organization shall not fail to be treated as organized and operated exclusively for a charitable purpose for purposes of subsection (c)(3) solely because a hospital which is owned and operated by such organization participates in a provider-sponsored organization (as defined in section 1853(e) of the Social Security Act), whether or not the provider-sponsored organization is exempt from tax. For purposes of subsection (c)(3), any person with a material financial interest in such a providersponsored organization shall be treated as a private shareholder or individual with respect to the hospital." 26 USC 501 note. (b) EFFECTIVE DATE. —The amendment made by subsection (a) shall take effect on the date of the enactment of this Act. Subtitle B—Prevention Initiatives SEC. 4101. SCREENING MAMMOGRAPHY. (a) PROVIDING ANNUAL SCREENING MAMMOGRAPHY FOR WOMEN OVER AGE 39. —Section 1834(c)(2)(A) (42 U.S.C. 1395m(c)(2)(A)) is amended— (1) in clause (iii), to read as follows: "(iii) In the case of a woman over 39 years of age, payment may not be made under this part for screening mammography performed within 11 months following the month in which a previous screening mammography was performed."; and (2) by striking clauses (iv) and (v). (b) WAIVER OF DEDUCTIBLE. —The first sentence of section 1833(b) (42 U.S.C. 13951(b)) is amended— (1) by striking "and" before "(4)", and (2) by inserting before the period at the end the following: ", and (5) such deductible shall not apply with respect to screening mammography (as described in section 1861(jj))". (c) CONFORMING AMENDMENT. —Section 1834(c)(1)(C) (42 U.S.C. 1395m(c)(l)(C)) is amended by striking ", subject to the deductible established under section 1833(b),". 42 USC 1395/ (d) EFFECTIVE DATE. —The amendments made by this section note. shall apply to items and services furnished on or after January 1, 1998. SEC. 4102. SCREENING PAP SMEAR AND PELVIC EXAMS. (a) COVERAGE OF PELVIC EXAM; INCREASING FREQUENCY OF COVERAGE OF PAP SMEAR.—Section 1861(nn) (42 U.S.C. 1395x(nn)) is amended— (1) in the heading, by striking "Smear" and inserting "Smear; Screening Pelvic Exam";
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