(a) FY 1988 through FY 1997. For discharges occurring on or after October 1, 1987 and before October 1, 1997, payments for inpatient operating costs to hospitals located in Puerto Rico that are paid under the prospective payment system are equal to the sum of--
(1) 75 percent of the Puerto Rico prospective payment rate for inpatient operating costs, as determined under Sec. 412.208 or Sec. 412.210; and
(2) 25 percent of a national prospective payment rate for inpatient operating costs, as determined under Sec. 412.212.
(b) FY 1998 through March 31, 2004. For discharges occurring on or after October 1, 1997 and before April 1, 2004, payments for inpatient operating costs to hospitals located in Puerto Rico that are paid under the prospective payment system are equal to the sum of--
(1) 50 percent of the Puerto Rico prospective payment rate for inpatient operating costs, as determined under Sec. 412.208 or Sec. 412.210; and
(2) 50 percent of a national prospective payment rate for inpatient operating costs, as determined under Sec. 412.212.
(c) Period of April 1, 2004 through September 31, 2004. For discharges occurring on or after April 1, 2004 and before October 1, 2004, payment for inpatient operating costs to hospitals located in Puerto Rico that are paid under the prospective payment system are equal to the sum of--
(1) 37.5 percent of the Puerto Rico prospective payment rate for inpatient operating costs, as determined under Sec. 412.208 or Sec. 412.210; and
(2) 62.5 percent of the national prospective payment rate for inpatient operating costs, as determined under Sec. 412.212.
(d) FY 2005 and thereafter. For discharges occurring on or after October 1, 2004, payments for inpatient operating costs to hospitals located in Puerto Rico that are paid under the prospective payment system are equal to the sum of--
(1) 25 percent of the Puerto Rico prospective payment rate for inpatient operating costs, as determined under Sec. 412.208 or Sec. 412.211; and
(2) 75 percent of a national prospective payment rate for inpatient operating costs, as determined under Sec. 412.212. [62 FR 46030, Aug. 29, 1997, as amended at 69 FR 49247, Aug. 11, 2004]