---
kind: "section"
citation: "42 C.F.R. § 412.374"
title: "42"
number: "412.374"
heading: "Payments to hospitals located in Puerto Rico."
url: "https://uscodex.org/cfr/42/412.374"
---

# §412.374. Payments to hospitals located in Puerto Rico.

- (a) **FY 1998 through FY 2004.** Payments for capital-related costs to hospitals located in Puerto Rico that are paid under the prospective payment system are equal to the sum of the following:
  - (1) 50 percent of the Puerto Rico capital rate based on data from Puerto Rico hospitals only, which is determined in accordance with procedures for developing the Federal rate; and
  - (2) 50 percent of the Federal rate, as determined under [§ 412.308](/cfr/42/412.308.md).
- (b) **FY 2005 through FY 2016.** For discharges occurring on or after October 1, 2004 and on or before September 30, 2016, payments for capital-related costs to hospitals located in Puerto Rico that are paid under the prospective payment system are equal to the sum of the following:
  - (1) 25 percent of the Puerto Rico capital rate based on data from Puerto Rico hospitals only, which is determined in accordance with procedures for developing the Federal rate; and
  - (2) 75 percent of the Federal rate, as determined under [§ 412.308](/cfr/42/412.308.md).
- (c) Effective for fiscal year 1998, the Puerto Rico capital rate described in [paragraph (a)](#a) of this section in effect on September 30, 1997, is reduced by 15.68 percent.
- (d) For discharges occurring on or after October 1, 1997 through September 30, 2002, the Puerto Rico capital rate described in [paragraph (a)](#a) of this section in effect on September 30, 1997 is further reduced by 2.1 percent.
- (e) **FY 2017 and subsequent fiscal years.** For discharges occurring on or after October 1, 2016, payments for capital-related costs to hospitals located in Puerto Rico that are paid under the prospective payment system are based on 100 percent of the Federal rate, as determined under [§ 412.308](/cfr/42/412.308.md).

## Notes

### Amendments

[62 FR 46032, Aug. 29, 1997, as amended at 69 FR 49250, Aug. 11, 2004; 81 FR 57268, Aug. 22, 2016]

### Source

Source: 56 FR 43449, Aug. 30, 1991, unless otherwise noted.

### Authority

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

### Source

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

### Amendments

[62 FR 46032, Aug. 29, 1997, as amended at 69 FR 49250, Aug. 11, 2004; 81 FR 57268, Aug. 22, 2016]