---
kind: "section"
citation: "42 C.F.R. § 412.107"
title: "42"
number: "412.107"
heading: "Special treatment: Hospitals that receive an additional update for FYs 1998 and 1999."
url: "https://uscodex.org/cfr/42/412.107"
---

# §412.107. Special treatment: Hospitals that receive an additional update for FYs 1998 and 1999.

- (a) **Additional payment update.** A hospital that meets the criteria set forth in [paragraph (b)](#b) of this section receives the following increase to its applicable percentage amount set forth in § [412.63 (p)](/cfr/42/412.63.md?p=p) and [(q)](/cfr/42/412.63.md?p=q):
  - (1) For FY 1998, 0.5 percent.
  - (2) For FY 1999, 0.3 percent.
- (b) **Criteria for classification.** A hospital is eligible for the additional payment update set forth in [paragraph (a)](#a) of this section if it meets all of the following criteria:
  - (1) **Definition.** The hospital is not a Medicare-dependent, small rural hospital as defined in [§ 412.108(a)](/cfr/42/412.108.md?p=a) and does not receive any additional payment under the following provisions:
    - (i) The indirect medical education adjustment made under [§ 412.105](/cfr/42/412.105.md).
    - (ii) The disproportionate share adjustment made under [§ 412.106](/cfr/42/412.106.md).
  - (2) **State criteria.** The hospital is located in a State in which the aggregate payment made under § [412.112 (a)](/cfr/42/412.112.md?p=a) and [(c)](/cfr/42/412.112.md?p=c) for hospitals described in [paragraph (b)(1)](#b-1) of this section for their cost reporting periods beginning in FY 1995 is less than the allowable operating costs described in [§ 412.2(c)](/cfr/42/412.2.md?p=c) for those hospitals.
  - (3) **Hospital criteria.** The aggregate payment made to the hospital under § [412.112 (a)](/cfr/42/412.112.md?p=a) and [(c)](/cfr/42/412.112.md?p=c) for the hospital's cost reporting period beginning in the fiscal year in which the additional payment update described in [paragraph (a)](#a) of this section is made is less than the allowable operating cost described in [§ 412.2(c)](/cfr/42/412.2.md?p=c) for that hospital.

## Notes

### Amendments

[62 FR 46030, Aug. 29, 1997]

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 50 FR 12741, Mar. 29, 1985, unless otherwise noted.

### Amendments

[62 FR 46030, Aug. 29, 1997]