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Medicare Graduate Medical Education Payments: An Overview (CRS Report for Congress)

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Release Date Revised Sept. 29, 2022
Report Number IF10960
Report Type In Focus
Authors Marco A. Villagrana
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised Feb. 19, 2019 (2 pages, $24.95) add
  • Premium   Aug. 28, 2018 (2 pages, $24.95) add
Summary:

The federal government makes significant investments in graduate medical education (GME), which is postgraduate training that medical, osteopathic, dental, and podiatric residents must complete to be certified to practice independently. Since its enactment in 1965, the Medicare program has been a chief source of federal GME funding to improve hospital quality and defray some of the extra costs for teaching hospitals that serve Medicare patients. The Government Accountability Office (GAO) reports that federal support for GME was $14.51 billion in 2015 (GAO18-240). Medicare accounts for most of that support. The national physician workforce is largely determined by the number of residents who complete GME and the practice specialties and practice locations they choose. As such, Medicare funding has a significant effect on (1) the size of total physician supply, (2) the number of physicians practicing in various specialties, and (3) where physicians practice after completing their residencies. However, Medicare has acted primarily as a passive payer and has not actively directed the workforce’s composition. This In Focus provides an overview of Medicare GME payments to hospitals. Specifically, it discusses hospital eligibility for GME payments, what Medicare GME covers, and how Medicare pays for GME. More information on Medicare and other GME programs may be found in CRS Report R44376, Federal Support for Graduate Medical Education: An Overview.