If your institution is beginning to think about becoming a teaching hospital that receives funding from the Medicare program for an education mission, or if you are a medical school seeking to develop education partnerships with non-teaching hospitals, the AAMC encourages you to begin the planning process several years in advance of taking on your first resident.
Building residency programs requires careful planning and important collaboration among all stakeholders, including the potential future teaching hospital, area medical schools, the accrediting body, and the federal government (specifically, the Centers for Medicare and Medicaid Services (CMS), which oversees Medicare payment policy).
This guide will help you understand:
- What it means to be a “new” teaching hospital for Medicare purposes (and why being “new” matters);
- The types of residency training programs Medicare will pay for;
- How long the Medicare program will pay for a particular resident;
- The two types of payments Medicare makes that have an education label (referred to as DGME payments and IME payments) and how these payments will be calculated for your hospital;
- The limit or “cap” on the number of residents Medicare will pay for and how that cap will be set at your hospital;
- How Medicare will reimburse your hospital during the first five years of being a teaching hospital, before a resident cap is established;
- The implications of being a hospital that accepts rotating residents versus being a “new” teaching hospital; and
- Other important tips to keep in mind as you build your program.
This updated 2014 edition is available as a free PDF for AAMC members, non-profit organizations, medical students, and residents. It is available for purchase by nonmembers and for-profit companies.
AAMC member institutions: The member price ($0) will be shown in the shopping cart after you log in.
Nonprofits, medical students, and residents: Please call 202-828-0416 or email firstname.lastname@example.org to request your free download.
Nonmember Price: $100
Member Price: Free