§ 1395yy.
(a)
Per diem limitations
The Secretary, in determining the amount of the payments which may be made under this subchapter with respect to routine service costs of extended care services shall not recognize as reasonable (in the efficient delivery of health services) per diem costs of such services to the extent that such per diem costs exceed the following per diem limits, except as otherwise provided in this section:
(1)
With respect to freestanding skilled nursing facilities located in urban areas, the limit shall be equal to 112 percent of the mean per diem routine service costs for freestanding skilled nursing facilities located in urban areas.
(2)
With respect to freestanding skilled nursing facilities located in rural areas, the limit shall be equal to 112 percent of the mean per diem routine service costs for freestanding skilled nursing facilities located in rural areas.
(3)
With respect to hospital-based skilled nursing facilities located in urban areas, the limit shall be equal to the sum of the limit for freestanding skilled nursing facilities located in urban areas, plus 50 percent of the amount by which 112 percent of the mean per diem routine service costs for hospital-based skilled nursing facilities located in urban areas exceeds the limit for freestanding skilled nursing facilities located in urban areas.
(4)
With respect to hospital-based skilled nursing facilities located in rural areas, the limit shall be equal to the sum of the limit for freestanding skilled nursing facilities located in rural areas, plus 50 percent of the amount by which 112 percent of the mean per diem routine service costs for hospital-based skilled nursing facilities located in rural areas exceeds the limit for freestanding skilled nursing facilities located in rural areas.
In applying this subsection the Secretary shall make appropriate adjustments to the labor related portion of the costs based upon an appropriate wage index, and shall, for cost reporting periods beginning on or after October 1, 1992, on or after October 1, 1995, and every 2 years thereafter, provide for an update to the per diem cost limits described in this subsection, except that the limits effective for cost reporting periods beginning on or after October 1, 1997, shall be based on the limits effective for cost reporting periods beginning on or after October 1, 1996.
([Aug. 14, 1935, ch. 531], title XVIII, § 1888, as added [Pub. L. 98–369, div. B, title III, § 2319(b)], July 18, 1984, [98 Stat. 1082]; amended [Pub. L. 99–272, title IX], §§ 9126(a), (b), 9219(b)(1)(C), Apr. 7, 1986, [100 Stat. 168], 170, 182; [Pub. L. 99–514, title XVIII, § 1895(b)(7)(A)], (B), Oct. 22, 1986, [100 Stat. 2933]; [Pub. L. 100–203, title IV, § 4201(b)(2)], Dec. 22, 1987, [101 Stat. 1330–174]; [Pub. L. 101–508, title IV, § 4008(e)(2)], (h)(2)(A)(ii), Nov. 5, 1990, [104 Stat. 1388–45], 1388–48; [Pub. L. 103–66, title XIII, § 13503(a)(2)], (3)(A), Aug. 10, 1993, [107 Stat. 578]; [Pub. L. 105–33, title IV], §§ 4431, 4432(a), (b)(3), (5)(H), 4511(a)(2)(E), Aug. 5, 1997, [111 Stat. 414], 421, 422, 442; [Pub. L. 106–113, div. B, § 1000(a)(6) [title I, §§ 102(a), 103(a), (b), 104(a), 105(a), title III, § 321(g)(1), (k)(18)]], Nov. 29, 1999, [113 Stat. 1536], 1501A–325 to 1501A–327, 1501A–366, 1501A–368; [Pub. L. 106–554, § 1(a)(6) [title II, § 203(a), title III, § 311(a)]], Dec. 21, 2000, [114 Stat. 2763], 2763A–481, 2763A–497; [Pub. L. 108–173, title IV, § 410(a)], title V, § 511(a), Dec. 8, 2003, [117 Stat. 2271], 2298; [Pub. L. 110–275, title I, § 149(b)], July 15, 2008, [122 Stat. 2549]; [Pub. L. 111–148, title III, § 3401(b)], title VI, § 6104, Mar. 23, 2010, [124 Stat. 481], 711; [Pub. L. 113–93, title II, § 215(a)], (b), Apr. 1, 2014, [128 Stat. 1048], 1049; [Pub. L. 113–185, § 2(c)(4)(A)], Oct. 6, 2014, [128 Stat. 1965]; [Pub. L. 114–10, title IV, § 411(a)], Apr. 16, 2015, [129 Stat. 161]; [Pub. L. 115–123, div. E, title XII, § 53111], Feb. 9, 2018, [132 Stat. 304]; [Pub. L. 116–260, div. CC, title I], §§ 111(a), 134(a), Dec. 27, 2020, [134 Stat. 2944], 2977; [Pub. L. 117–328, div. FF, title IV, § 4121(a)(4)], Dec. 29, 2022, [136 Stat. 5903].)