42 USC 1395g - Payments to providers of services

U.S Code last checked for updates: Aug 17, 2025

§ 1395g.

Payments to providers of services

(a)

Determination of amount

(b)

Conditions

(c)

Payments under assignment or power of attorney

(d)

Accrual of interest on balance of excess or deficit not paid

(e)

Periodic interim payments

(1)

The Secretary shall provide payment under this part for inpatient hospital services furnished by a subsection (d) hospital (as defined in section 1395ww(d)(1)(B) of this title, and including a distinct psychiatric or rehabilitation unit of such a hospital) and a subsection (d) Puerto Rico hospital (as defined in section 1395ww(d)(9)(A) of this title) on a periodic interim payment basis (rather than on the basis of bills actually submitted) in the following cases:

(A)

Upon the request of a hospital which is paid through an agency or organization with an agreement with the Secretary under section 1395h of this title, if the agency or organization, for three consecutive calendar months, fails to meet the requirements of subsection (c)(2) of such section and if the hospital meets the requirements (in effect as of October 1, 1986) applicable to payment on such a basis, until such time as the agency or organization meets such requirements for three consecutive calendar months.

(B)

In the case of a hospital that—

(i)

has a disproportionate share adjustment percentage (as established in clause (iv) of such section) of at least 5.1 percent (as computed for purposes of establishing the average standardized amounts for discharges occurring during fiscal year 1987), and

(ii)

requests payment on such basis,

but only if the hospital was being paid for inpatient hospital services on such a periodic interim payment basis as of June 30, 1987, and continues to meet the requirements (in effect as of October 1, 1986) applicable to payment on such a basis.

(C)

In the case of a hospital that—

(i)

is located in a rural area,

(ii)

has 100 or fewer beds, and

(iii)

requests payment on such basis,

(2)

The Secretary shall provide (or continue to provide) for payment on a periodic interim payment basis (under the standards established under section 405.454(j) of title 42, Code of Federal Regulations, as in effect on October 1, 1986, in the cases described in subparagraphs (A) through (D)) with respect to—

(A)

inpatient hospital services of a hospital that is not a subsection (d) hospital (as defined in section 1395ww(d)(1)(B) of this title);

(B)

a hospital which is receiving payment under a State hospital reimbursement system under section 1395f(b)(3) or 1395ww(c) of this title, if payment on a periodic interim payment basis is an integral part of such reimbursement system;

(C)

extended care services;

(D)

hospice care; and

(E)

inpatient critical access hospital services;

if the provider of such services elects to receive, and qualifies for, such payments.

(3)

Subject to subsection (f), in the case of a subsection (d) hospital or a subsection (d) Puerto Rico hospital (as defined for purposes of section 1395ww of this title) which has significant cash flow problems resulting from operations of its intermediary or from unusual circumstances of the hospital’s operation, the Secretary may make available appropriate accelerated payments.

(4)

A hospital created by the merger or consolidation of 2 or more hospitals or hospital campuses shall be eligible to receive periodic interim payment on the basis described in paragraph (1)(B) if—

(A)

at least one of the hospitals or campuses received periodic interim payment on such basis prior to the merger or consolidation; and

(B)

the merging or consolidating hospitals or campuses would each meet the requirement of paragraph (1)(B)(i) if such hospitals or campuses were treated as independent hospitals for purposes of this subchapter.

(f)

Expansion of accelerated payment program during COVID–19 public health emergency

(1)

During the emergency period described in section 1320b–5(g)(1)(B) of this title, the Secretary shall expand the program under subsection (e)(3) pursuant to paragraph (2).

(2)

In expanding the program under subsection (e)(3), the following shall apply:

(A)

(i)

In addition to the hospitals described in subsection (e)(3), the following hospitals shall be eligible to participate in the program:

(I)

Hospitals described in clause (iii) of section 1395ww(d)(1)(B) of this title.

(II)

Hospitals described in clause (v) of such section.

(III)

Critical access hospitals (as defined in section 1395x(mm)(1) of this title).

(ii)

Subject to appropriate safeguards against fraud, waste, and abuse, upon a request of a hospital described in clause (i), the Secretary shall (or, with respect to requests submitted to the Secretary after April 26, 2020, may) provide accelerated payments under the program to such hospital.

(B)

Upon the request of the hospital, the Secretary may do any of the following:

(i)

Make accelerated payments on a periodic or lump sum basis.

(ii)

Increase the amount of payment that would otherwise be made to hospitals under the program up to 100 percent (or, in the case of critical access hospitals, up to 125 percent).

(iii)

Extend the period that accelerated payments cover so that it covers up to a 6-month period.

(C)

In the case of a payment made under the terms of the program under subsection (e)(3), including such program as expanded pursuant to this subsection, on or after March 27, 2020, and so made during the emergency period described in section 1320b–5(g)(1)(B) of this title, upon request of a hospital, the Secretary shall—

(i)

provide 1 year before payments for items and services furnished by the hospital are offset to recoup payments under such program;

(ii)

provide that any such offset be an amount equal to—

(I)

during the first 11 months in which any such offsets are made with respect to payment for items and services furnished by the hospital, 25 percent of the amount of such payment for such items and services; and

(II)

during the succeeding 6 months, 50 percent of the amount of such payment for such items and services; and

(iii)

allow 29 months from the date of the first payment under such program to such provider before requiring that the outstanding balance be paid in full.

(3)

Nothing in this subsection shall preclude the Secretary from carrying out the provisions described in clauses (i), (ii), and (iii) of paragraph (2)(B) and clauses (i) and (ii) of paragraph (2)(C) under the program under subsection (e)(3) after the period for which this subsection applies.

(4)

Notwithstanding any other provision of law, the Secretary may implement the provisions of this subsection by program instruction or otherwise.

(Aug. 14, 1935, ch. 531, title XVIII, § 1815, as added Pub. L. 89–97, title I, § 102(a), July 30, 1965, 79 Stat. 297; amended Pub. L. 94–182, title I, § 112(a)(2), Dec. 31, 1975, 89 Stat. 1055; Pub. L. 95–142, § 2(a)(2), Oct. 25, 1977, 91 Stat. 1175; Pub. L. 96–473, § 6(i), Oct. 19, 1980, 94 Stat. 2266; Pub. L. 97–248, title I, §§ 117(a)(1), 148(b), Sept. 3, 1982, 96 Stat. 354, 394;

cite as: 42 USC 1395g