Amends title XVIII (Medicare) of the Social Security Act to provide for the continuation of Medicare direct graduate medical education payment rates for certain training programs in osteopathy after their operation is assumed by another hospital. Limits application of this special rule to a medical residency training program in osteopathy operated by a hospital where: (1) the program was previously operated by an osteopathic hospital that in FY 1993 ceased furnishing services for which payment may be made; (2) at the time the osteopathic hospital ceased furnishing such services, the operation of the program was assumed by the hospital; and (3) at the time of assuming such operation, the only approved medical residency training program operated by the hospital was a program in podiatry.