Ill STAT. 454 PUBLIC LAW 105-33—AUG. 5, 1997 (2) permitting the unit of local government to transport individuals to non-hospital providers if such providers are able to furnish quality services at a lower cost than hospital providers; or (3) implementing such other innovations as the unit of local government may propose to improve the quality of ambulance services and control the costs of such services. (d) CONTRACT PAYMENTS IN LIEU OF OTHER BENEFITS. —Pay- ments under a contract to a unit of local government under this section shall be instead of the amounts which (in the absence of the contract) would otherwise be payable under part B of title XVIII of the Social Security Act for the services covered under the contract which are furnished to individuals who reside in the unit of local government, (e) REPORT ON EFFECTS OF CAPITATED CONTRACTS.— (1) STUDY.—The Secretary shall evaluate the demonstration projects conducted under this section. Such evaluation shall include an analysis of the quality and cost-effectiveness of ambulance services furnished under the projects. (2) REPORT. —Not later than January 1, 2000, the Secretary shall submit a report to Congress on the study conducted under paragraph (1), and shall include in the report such recommendations as the Secretary considers appropriate, including recommendations regarding modifications to the methodology used to determine the amount of payments made under such contracts and extending or expanding such projects. CHAPTER 4—PROSPECTIVE PAYMENT FOR OUTPATIENT REHABILITATION SERVICES SEC. 4541. PROSPECTIVE PAYMENT FOR OUTPATIENT REHABILITA- TION SERVICES. (a) PAYMENT BASED ON FEE SCHEDULE.— (1) SPECIAL PAYMENT RULES.— Section 1833(a) (42 U.S.C. 13951(a)) is amended— (A) in paragraph (2) in the matter before subparagraph (A), by inserting "(C)," before "(D)"; (B) in paragraph (3), by striking "subparagraphs (D) and (E) of section 1832(a)(2)" and inserting "section 1832(a)(2)(D)"; (C) in paragraph (6), by striking "and" at the end; (D) in paragraph (7), by striking the period at the end and inserting a semicolon; and (E) by adding at the end the following new paragraphs: "(8) in the case of— "(A) outpatient physical therapy services (which includes outpatient speech-language pathology services) and outpatient occupational therapy services furnished— "(i) by a rehabilitation agency, public health agency, clinic, comprehensive outpatient rehabilitation facility, or skilled nursing facility, "(ii) by a home health agency to an individual who is not homebound, or "(iii) by another entity under an arrangement with an entity described in clause (i) or (ii); and
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