### Question
What is the definition of trended costs?


### Answer
The definition of **trended costs** is as follows in *42 U.S.C. § 1395ww*:

> for a hospital cost reporting period ending in a fiscal year—


(i) in the case of a hospital for which its cost reporting period ending in fiscal year 1996 was its third or subsequent full cost reporting period for which it receives payments under this subsection, the lesser of the operating costs or target amount for that hospital for its cost reporting period ending in fiscal year 1996, or


(ii) in the case of any other hospital, the operating costs for that hospital for its third full cost reporting period for which it receives payments under this subsection,


  

increased (in a compounded manner) for each succeeding fiscal year (through the fiscal year involved) by the market basket percentage increase for the fiscal year

#### Citation:
  - *42 U.S.C. § 1395ww*
  - Heading: **CHAPTER 7-SOCIAL SECURITY > SUBCHAPTER XVIII-HEALTH INSURANCE FOR AGED AND DISABLED > Part E-Miscellaneous Provisions**

