New hospitals
(b) New hospitals. (1) A new hospital, as defined under 412.300(b), is paid 85 percent of its allowable Medicare inpatient hospital capital-related costs through its cost reporting period ending at least 2 years after the hospital accepts its first patient. (2) For the third year through the remainder of the transition period, the hospital is paid based on the fully prospective payment methodology or the hold-harmless payment methodology using the base period determined under 412.328(a)(2). (3) If the hospital is paid under the hold-harmless methodology described in 412.344, the hold-harmless payment for old capital costs described in 412.344(a)(1) is payable for up to and including 8 years and may continue beyond the first cost reporting period beginning on or after October 1, 2000.