Section 1 Establishing a definition of essential health system in statute
Section 1861 of the Social Security Act (42 U.S.C. 1395x) is amended by adding at the end the following new subsection:
“(nnn) Essential health system—The term “essential health system” means a hospital—
“(1) that is a subsection (d) hospital (as defined in section 1886(d)(1)(B));
“(2) that is a non-Federal governmental or private nonprofit hospital; and
“(3) that—
“(A) meets the requirements of a Medicaid deemed disproportionate share hospital (as described in section 1923(b)(1));
“(B) has a Medicare disproportionate patient percentage of at least 35 percent (as defined in section 1886(d)(5)(F)(vi)); or
“(C) has a Medicare disproportionate share hospital uncompensated care payment factor of 0.0005 or more, (as defined in section 1886(r)(2)(C)).”