Definition
(1) Definition. The hospital is not a Medicare-dependent, small rural hospital as defined in 412.108(a) and does not receive any additional payment under the following provisions: (i) The indirect medical education adjustment made under 412.105. (ii) The disproportionate share adjustment made under 412.106. (2) State criteria. The hospital is located in a State in which the aggregate payment made under 412.112 (a) and (c) for hospitals described in paragraph (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) for those hospitals. (3) Hospital criteria. The aggregate payment made to the hospital under 412.112 (a) and (c) for the hospital's cost reporting period beginning in the fiscal year in which the additional payment update described in paragraph (a) of this section is made is less than the allowable operating cost described in 412.2(c) for that hospital.