Learn about AAIM/ACP's recommendations to better align GME financing with workforce needs and IOM's report on financing GME.
AAIM and the American College of Physicians (ACP) released a new policy paper May 3 calling for changes that better align funding for GME with the nation’s health care workforce needs. The paper, Financing US Graduate Medical Education, was published in Annals of Internal Medicine July 19, 2016.
The new paper offers nine recommendations aimed at addressing the current problems with GME financing.
GME plays a major role in addressing the nation’s workforce needs, as GME is the ultimate determinant of the output of practicing physicians. The federal government is the largest explicit provider of GME funding, with the majority of support coming from Medicare, which currently provides approximately $10 billion annually. The costs of GME are recognized by Medicare under two mechanisms: direct graduate medical education payments (DGME) to hospitals for residents’ stipends, faculty salaries, administrative costs, and institutional overhead; and an indirect medical education (IME) adjustment developed to compensate teaching hospitals for the higher costs associated with teaching. The number of Medicare-supported positions at institutions is capped at 1996 levels. The existing caps on the number of Medicare-funded GME positions have been criticized as not allowing GME training positions to increase by the numbers needed to slow or reverse growing shortages of physicians in primary care and other specialties.
Read the Position Paper