To require a study of what institutions are institutions for mental diseases for purposes of the medicaid program.

Directs the Secretary of Health and Human Services to conduct a study and report to the Congress by October 1, 1990, on whether all components of an institution under common governance and administration should be considered in determining whether it is an institution for mental diseases under the Medicaid (title XIX of the Social Security Act) program. Places a moratorium on considering two specified facilities in Michigan as institutions for mental diseases under the Medicaid program.