114 STAT. 2763A-482 PUBLIC LAW 106-554—APPENDIX F (2) in subparagraph (A), by striking "IN GENERAL.—The" and inserting "TRANSITION.— Subject to subparagraph (C), the"; (3) in subparagraph (A), by inserting "(other than critical access hospitals)" after "facilities described in subparagraph (B)"; (4) in subparagraph (B), by striking ", for which payment" and all that follows before the period; and (5) by adding at the end the following new subparagraph: " (C) EXEMPTION FROM PPS OF SWING-BED SERVICES FUR- NISHED IN CRITICAL ACCESS HOSPITALS.— The prospective payment system established under this subsection shall not apply to services furnished by a critical access hospital pursuant to an agreement under section 1883.". (b) PAYMENT ON A REASONABLE COST BASIS FOR SWING BED SERVICES FURNISHED BY CRITICAL ACCESS HOSPITALS.— Section 1883(a) (42 U.S.C. 1395tt(a)) is amended— (1) in paragraph (2)(A), by inserting "(other than a critical access hospital)" after "any hospital"; and (2) by adding at the end the following new paragraph: "(3) Notwithstanding any other provision of this title, a critical access hospital shall be paid for covered skilled nursing facility services furnished under an agreement entered into under this section on the basis of the reasonable costs of such services (as determined under section 186 l(v)).", (c) EFFECTIVE DATE. —The amendments made by this section shall apply to cost reporting periods beginning on or after the date of the enactment of this Act. SEC. 204. PAYMENT IN CRITICAL ACCESS HOSPITALS FOR EMERGENCY ROOM ON-CALL PHYSICIANS. (a) IN GENERAL. —Section 1834(g) (42 U.S.C. 1395m(g)), as amended by section 201(a), is further amended by adding at the end the following new paragraph: " (5) COVERAGE OF COSTS FOR EMERGENCY ROOM ON-CALL PHYSICIANS. —In determining the reasonable costs of outpatient critical access 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 emergency room physicians who are on-call (as defined by the Secretary) but who are not present on the premises of the critical access hospital involved, and are not otherwise furnishing physicians' services and are not on-call at any other provider or facility.". (b) EFFECTIVE DATE.— The amendment made by subsection (a) shall apply to cost reporting periods beginning on or after October 1, 2001. SEC. 205. TREATMENT OF AMBULANCE SERVICES FURNISHED BY CER- TAIN CRITICAL ACCESS HOSPITALS. (a) IN GENERAL.—Section 1834(1) (42 U.S.C. 1395m(l)) is amended by adding at the end the following new paragraph: " (8) SERVICES FURNISHED BY CRITICAL ACCESS HOSPITALS. — Notwithstanding any other provision of this subsection, the Secretary shall pay the reasonable costs incurred in furnishing ambulance services if such services are furnished— "(A) by a critical access hospital (as defined in section 1861(mm)(l)), or
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