(a) General rule. If the State plan provides for NF services furnished by a swing-bed hospital, as specified in Sec. Sec. 440.40(a) and 440.150(f) of this chapter, the methods and standards used to determine payment rates for routine NF services must--
(1) Provide for payment at the average rate per patient day paid to NFs, as applicable, for routine services furnished during the previous calendar year; or
(2) Meet the State plan and payment requirements described in this subpart, as applicable.
(b) Application of the rule. The payment methodology used by a State to set payment rates for routine NF services must apply to all swing-bed hospitals in the State. [59 FR 56237, Nov. 10, 1994] Subpart D [Reserved]