Title III, SEC. 3103. AVAILABILITY OF FUNDS FOR PAYMENTS; ANNUAL AMOUNT OF PAYMENTS. (a) Determination by Secretary of Funds Available for Payments. (1) Annual academic health center account. Subject to paragraph (2) and section 3104, the Secretary shall determine for each calendar year the amount to be made available for the purpose of making payments under section 3101 for the year to eligible centers. In determining such amount, the Secretary shall consider the need of eligible centers for assistance with the costs described in section 3101(b). (2) Limitation. The amount determined by the Secretary for a calendar year under paragraph (1) may not exceed the following amount, as applicable to the calendar year: (A) In the case of calendar year 1996, $3,100,000,000. (B) In the case of each of the calendar years 1997 and 1998, $3,200,000,000. (C) In the case of calendar year 1999, $3,700,000,000. (D) In the case of calendar year 2000, $3,800,000,000. (E) In the case of each subsequent calendar year, the amount specified in subparagraph (C) increased by the product of such amount and the general health care inflation factor (as defined in subsection (c)). (b) Amount of Payments for Individual Eligible Centers. The amount of payments required in section 3101 to be made to an eligible center for a calendar year is an amount equal to the product of (1) the annual academic health center account determined by the Secretary under subsection (a) for the calendar year; and (2) the percentage constituted by the ratio of (A) an amount equal to product of (i) the portion of the gross receipts of the center for the preceding calendar year that was derived from providing services to patients (both inpatients and outpatients); and (ii) the indirect teaching adjustment factor determined under section 1886(d)(5)(B)(ii) of the Social Security Act (as in effect before January 1, 1998) and applicable to patients discharged from the center in such preceding year (or, in the case of patients discharged from the center on or after January 1, 1998, applicable to patients discharged in calendar year 1997); to (B) the sum of the respective amounts determined under subparagraph (A) for eligible centers. (c) Report Regarding Modifications in Formula. Not later than July 1, 1996, the Secretary shall submit to the Congress a report containing any recommendations of the Secretary regarding policies for allocating amounts under subsection (a) among eligible centers. (d) Definition. For purposes of this subtitle: (1) The term ``eligible center'', with respect to the calendar year involved, means an academic health center that submits to the Secretary a written request for such year in accordance with section 3102. (2) The term ``annual academic health center account'', with respect to a calendar year, means the amount determined under subsection (a) for such year. (2) The term ``general health care inflation factor'', with respect to a year, has the meaning given such term in section 6001(a)(3) for such year.