Authorizes the Secretary to award grants to applicant Medicare hospitals to: (1) adopt such educational materials for local use and to assist hospitals in applying such information on community and media relations and in developing ties with the local and regional media; (2) assist such hospitals in meeting epidemic training, recognition, and response standards identified by the Secretary as designed to educate Medicare hospital staff regarding epidemics resulting from natural causes or bioterrorism, and to enable such staff to effectively recognize and respond to such epidemics; and (3) reimburse such hospitals that serve an area that the President has determined warrants assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act due to the direct effects of an epidemic to reimburse for specified post-disaster costs.