A bill to amend titles XVIII and XIX of the Social Security Act with respect to extended care services, skilled nursing services, and intermediate care furnished by certain hospitals.

Amends the Social Security Act to authorize rural hospitals of fewer than 100 beds which have been granted a certificate of need for the provision of long-term care services to enter into agreements with the Secretary of Health, Education, and Welfare under the Medicare and Medicaid programs (titles XVIII and XIX of the Social Security Act), providing that their inpatient hospital facilities may be used to furnish services which if furnished by a skilled nursing facility would constitute post hospital extended care services. Authorizes, pursuant to such agreements, payment to be made for skilled nursing services and intermediate care services furnished by a hospital. Authorizes the Secretary to enter into such agreements on a demonstration basis with hospitals having between 100 and 150 beds if such hospitals meet the other requirements of this Act.