SECTION 1. Chapter 6D of the General Laws as established by section 15 of Chapter 224 of the Acts of 2012 is hereby amended by adding the following section:  In contracting with a nursing home licensed under chapter 111, section 71 of the General Laws, an accountable care organization established under this chapter shall reimburse the nursing home for care and services provided to an ACO patient as defined in this chapter at a rate of payment that is no less than the Medicare rate of payment that would have applied if the nursing home had been reimbursed for care and services rendered to the ACO patient under the Medicare program.

SECTION 2. Section 1 of Chapter 6D as established by Chapter 224 of the Acts of 2012 is amended by inserting at the end of the “provider organization” definition the following new sentence: “Provider organizations shall not include a nursing home licensed by the department of public health under section 71 of chapter 111 of the general laws.”

SECTION 3. Section 1 of Chapter 12C as established by Chapter 224 of the Acts of 2012 is amendment by inserting at the end of the “provider organization” definition the following new sentence:  “Provider organizations shall not include a nursing home licensed by the Department of Public Health under section  71 of chapter 111 of the general laws.”