KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A...

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KAREN R. BORMAN, MD, FACS KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID MEDICARE and MEDICAID REIMBURSEMENT for REIMBURSEMENT for GRADUATE MEDICAL GRADUATE MEDICAL EDUCATION EDUCATION A REVIEW FOR A REVIEW FOR COORDINATORS COORDINATORS

Transcript of KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A...

Page 1: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

KAREN R. BORMAN, MD, FACSKAREN R. BORMAN, MD, FACS

MEDICARE and MEDICAID MEDICARE and MEDICAID REIMBURSEMENT for REIMBURSEMENT for GRADUATE MEDICAL GRADUATE MEDICAL

EDUCATIONEDUCATION

A REVIEW FOR A REVIEW FOR COORDINATORSCOORDINATORS

Page 2: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

SCOPE OF GME ECONOMICSSCOPE OF GME ECONOMICSCOSTS AND FINANCING COSTS AND FINANCING

SOURCESSOURCESROLE OF MEDICAREROLE OF MEDICARE ROLE OF MEDICAIDROLE OF MEDICAID CONTROVERSIES AND CONTROVERSIES AND

CHALLENGESCHALLENGES

A REVIEW FOR COORDINATORSA REVIEW FOR COORDINATORS

Page 3: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

GMECONOMICS IS BIG BUSINESS!!!GMECONOMICS IS BIG BUSINESS!!!

GMECGMEC

Page 4: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

SOURCE: CMS, MEDICARE COST REPORT FILESOURCE: CMS, MEDICARE COST REPORT FILE

GME PAYMENTS ARCS STEERING COMMITTEEGME PAYMENTS ARCS STEERING COMMITTEE

IME DMETOTAL GME

PCP FTE

PCP PRA

SPEC FTE

SPEC PRA

AGRETTO 5270670 3044802 8315472 5.8 102177 2.8 96752

GUINTO 41789695 20352746 62142441 188.2 97235 304.9 92073

SCHULZ 10507318 6337737 16845055 82.1 85520 116.7 80980

FULBRIGHT 9460295 3639976 13100271 80.2 74742 65.8 70858

DEL COGLIN 20970154 8106191 29076345 99.1 74381 104.3 70576

OLENWINE 15858501 3962006 19820507 73.4 68359 41.6 64730

ST. PIERRE 42854191 11477698 54331888 205.9 67750 187.7 64229

CAMERON 15808970 5013549 20822519 90.7 64345 61 61001

CARTER 5628496 1648711 7277707 27.6 50428 25.3 50428

Page 5: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

ACGME PROGRAMS 2007

4008, 48%

4347, 52%

CORE SUBSPECIALTY

PROGRAMS 8,400*PROGRAMS 8,400*

GMECONOMICS BASICS: PROGRAMSGMECONOMICS BASICS: PROGRAMS

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SPONSORING INSTITUTIONS 700SPONSORING INSTITUTIONS 700PARTICIPATING INSTITUTIONS 2,900PARTICIPATING INSTITUTIONS 2,900

GMECONOMICS BASICS:GMECONOMICS BASICS:SPONSORS + AFFILIATESSPONSORS + AFFILIATES

ACGME PROGRAMS SPONSORED 2007

46%54%

ONE MULTIPLE

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AAMC COTH MEMBERS 400AAMC COTH MEMBERS 400

GMECONOMICS BASICS: TYPES GMECONOMICS BASICS: TYPES OF TEACHING HOSPITALSOF TEACHING HOSPITALS

COTH DISTRIBUTION

129, 32%

68, 17%203, 51%

AMC VA OTHER

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ALL COTH FACULTYALL COTH FACULTY 125,000125,000

GMECONOMICS BASICS: FACULTYGMECONOMICS BASICS: FACULTY

TEACHING FACULTY ALL TYPES

67%

33%

MEN WOMEN

Page 9: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

ACGME APPROVED RESIDENTSACGME APPROVED RESIDENTS 106,000* 106,000*

GMECONOMICS BASICS: RESIDENTSGMECONOMICS BASICS: RESIDENTS

ACGME RESIDENTS + FELLOWS

89607, 84%

16776, 16%

CORE SUBSPECIALTY

Page 10: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

RESIDENT SALARY + BENEFITSRESIDENT SALARY + BENEFITSSUPERVISING FACULTY PAYMENTSSUPERVISING FACULTY PAYMENTSEDUCATION OVERHEADEDUCATION OVERHEAD

EDUCATIONAL PRODUCTS + SERVICESEDUCATIONAL PRODUCTS + SERVICESSIMULATIONSIMULATION

ADMINISTRATIONADMINISTRATIONPROGRAM COORDINATOR + DIRECTORPROGRAM COORDINATOR + DIRECTOR

ACCREDITATION FEESACCREDITATION FEES

RECRUITINGRECRUITING

OTHER (e.g., PAGERS, COATS, TRAVEL)OTHER (e.g., PAGERS, COATS, TRAVEL)

GMECONOMICS: DIRECT GME COSTS (DME)GMECONOMICS: DIRECT GME COSTS (DME)

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RESIDENTSRESIDENTS 106,000 106,000**

DME SALARY + BENEFITSDME SALARY + BENEFITS

SALARY + BENEFITS ALL PGY 2003-2007

40000

45000

50000

55000

60000

65000

70000

2003 2004 2005 2006 2007

PGY1 PGY2 PGY3 PGY4 PGY5

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INEFFICIENT CARE BY RESIDENTSINEFFICIENT CARE BY RESIDENTS EMERGING TECHNOLOGY USAGEEMERGING TECHNOLOGY USAGE CASE MIX / SPECIALIZED CASE MIX / SPECIALIZED

SERVICESSERVICES ?PAYER MIX (DSH)?PAYER MIX (DSH) ?OTHER TRAINEES (TITLE VII)?OTHER TRAINEES (TITLE VII) OPERATING EXPENSESOPERATING EXPENSES EDUCATION RELATED FACILITIESEDUCATION RELATED FACILITIES CAPITAL EXPENSESCAPITAL EXPENSES

GMECONOMICS: INDIRECT GME COSTS (IME)GMECONOMICS: INDIRECT GME COSTS (IME)

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GMECONOMICS: FINANCING SOURCESGMECONOMICS: FINANCING SOURCES

MEDICARE: DME + IME + DSHMEDICARE: DME + IME + DSH CHILDRENS’ HOSPITALS GME VIA HRSACHILDRENS’ HOSPITALS GME VIA HRSA DEPARTMENT OF VETERANS AFFAIRS DEPARTMENT OF VETERANS AFFAIRS

(VA): DIRECT SUPPORT APPROPRIATION(VA): DIRECT SUPPORT APPROPRIATION MEDICAID: PER DIEM / CASE RATESMEDICAID: PER DIEM / CASE RATES STATES LINE ITEM / GOAL-DIRECTEDSTATES LINE ITEM / GOAL-DIRECTED PRIVATE PAYERS: HIGHER INPT RATESPRIVATE PAYERS: HIGHER INPT RATES MEDICAL SCHOOLS: PRACTICE PLANSMEDICAL SCHOOLS: PRACTICE PLANS HOSPITALS: FROM TOTAL MARGINHOSPITALS: FROM TOTAL MARGIN

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GMECONOMICS: FINANCING SOURCESGMECONOMICS: FINANCING SOURCES

GME FUNDING SOURCES

64

3.2

0.3

7

2.3

2

1.1

3.3

16

87

0.2

0.5

0 10 20 30 40 50 60 70 80 90 100

REVENUES

STATE/CITY

MGD CARE

VA

FACULTY

UNIVERSITY

NIH

OTHER FED

ENDOWMENT

OTHER GRANT

OTHER

2003 2007

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SOURCE: AAMC HOUSESTAFF REPORTS 2003-2007SOURCE: AAMC HOUSESTAFF REPORTS 2003-2007

GMECONOMICS: OPERATING BUDGETGMECONOMICS: OPERATING BUDGET

0

1

2

3

4

5

6

7

8

9

10

2003 2004 2005 2006 2007

SALARY + BENEFITS AS MEDIAN % HOSPITAL OPERATING BUDGET BY HOSPITAL TYPE

ALL STATE MED SCHOOL NON PROFIT

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SOURCE: AAMC HOUSESTAFF REPORTS 2003-2007SOURCE: AAMC HOUSESTAFF REPORTS 2003-2007

GMECONOMICS: OPERATING BUDGETGMECONOMICS: OPERATING BUDGET

0 5 10 15 20

2003

2004

2005

2006

2007

RESIDENT PACKAGE AS % HOSPITAL OPERATIONS MEAN BY REGION

ALL NORTHEAST SOUTH MIDWEST WEST

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GME FUNDING: MEDICARE’S ROLEGME FUNDING: MEDICARE’S ROLE

MEDICARE BECOMES LAW, 1965 MEDICARE BECOMES LAW, 1965 (SOCIAL SECURITY ACT)(SOCIAL SECURITY ACT)

Page 18: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

GME FUNDING: MEDICARE’S ROLEGME FUNDING: MEDICARE’S ROLE

“…“…educational activities enhance the educational activities enhance the quality quality of care in an institution, and it is intended, of care in an institution, and it is intended, until until the community undertakes to bear the community undertakes to bear such educational costs in some other waysuch educational costs in some other way, , that that partpart of the net cost of such activities of the net cost of such activities (including stipends of trainees, as well as (including stipends of trainees, as well as compensation of teachers and other costs) compensation of teachers and other costs) should be borne to an should be borne to an appropriateappropriate extent extent by the by the hospitalhospital insurance program” insurance program”

Page 19: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

MEDICARE: PROGRAM PARTSMEDICARE: PROGRAM PARTS

SOURCE: MedPAC DATA BOOK, 2006SOURCE: MedPAC DATA BOOK, 2006

Page 20: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

PART D: SUPPLEMENTARY PART D: SUPPLEMENTARY MEDICAL INSURANCE Rx DRUGSMEDICAL INSURANCE Rx DRUGS

GME FUNDING: MEDICARE’S ROLEGME FUNDING: MEDICARE’S ROLE

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PART B: SUPPLEMENTARY PART B: SUPPLEMENTARY MEDICAL INSURANCE PROVIDERSMEDICAL INSURANCE PROVIDERS

GME FUNDING: MEDICARE’S ROLEGME FUNDING: MEDICARE’S ROLE

FACULTY-GENERATED PATIENT CARE REVENUES FACULTY-GENERATED PATIENT CARE REVENUES

Page 22: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

PART A: HOSPITAL INSURANCE PART A: HOSPITAL INSURANCE TRUST FUNDTRUST FUND

GME FUNDING: MEDICARE’S ROLEGME FUNDING: MEDICARE’S ROLE

GME GME FUNDINGFUNDING

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ACUTE CAREACUTE CARE HIPPS, HOPPS, HIPPS, HOPPS,

PSYCHIATRIC, ASCsPSYCHIATRIC, ASCs POST-ACUTE CAREPOST-ACUTE CARE

SNF, IRF, LTCH, HOME SNF, IRF, LTCH, HOME HEALTH, HOSPICEHEALTH, HOSPICE

OTHEROTHER DIALYSIS, CLINICAL DIALYSIS, CLINICAL

LABORATORYLABORATORY

PART A: HI TRUST FUNDPART A: HI TRUST FUND

GME GME FUNDING?FUNDING?

PART A: HOSPITAL INSURANCE TRUST PART A: HOSPITAL INSURANCE TRUST FUNDFUND

Page 24: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

HOSPITAL INPATIENT HOSPITAL INPATIENT PROSPECTIVE PROSPECTIVE PAYMENT SYSTEM PAYMENT SYSTEM (HIPPS)(HIPPS)

PART A: HI TRUST FUNDPART A: HI TRUST FUND

GME GME FUNDING!FUNDING!

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DIRECT MEDICAL EDUCATIONDIRECT MEDICAL EDUCATION

DME = PRA X FTE X % Medicare DaysDME = PRA X FTE X % Medicare Days PRA = PER RESIDENT AMOUNTPRA = PER RESIDENT AMOUNTFTE = RESIDENT COUNTFTE = RESIDENT COUNT

PRIMARY CARE VS OTHERPRIMARY CARE VS OTHER

PRA CORRIDOR 85-140% NATIONAL PRA CORRIDOR 85-140% NATIONAL AVERAGEAVERAGE

Page 26: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

HOSPITAL INPATIENT HOSPITAL INPATIENT PROSPECTIVE PAYMENT PROSPECTIVE PAYMENT SYSTEM, 1983SYSTEM, 1983 CBO PREDICTED -7% TEACHING CBO PREDICTED -7% TEACHING

HOSPITALS / +7% NON-HOSPITALS / +7% NON-TEACHINGTEACHING

DIRECT GME EXCLUDED FROM DIRECT GME EXCLUDED FROM PPSPPS

INDIRECT GME ADD ON TO INDIRECT GME ADD ON TO BASE RATE 11.6BASE RATE 11.6

PART A: ORIGINS OF IMEPART A: ORIGINS OF IME

Page 27: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

$ IME ADJUSTMENT STATUTORY IME ADJUSTMENT STATUTORY FORMULA, OPERATIONSFORMULA, OPERATIONS$ 90% PPS PAYMENTS90% PPS PAYMENTS

$ IME % = 1.32 * [(1 + IRB) IME % = 1.32 * [(1 + IRB) .405 .405 - 1 ] x - 1 ] x 100100

$ IME ADJUSTMENT STATUTORY IME ADJUSTMENT STATUTORY FORMULA, CAPITALFORMULA, CAPITAL$ 10% PPS PAYMENTS10% PPS PAYMENTS$ AVG DAILY CENSUS INSTEAD OF IRBAVG DAILY CENSUS INSTEAD OF IRB

INDIRECT MEDICAL EDUCATIONINDIRECT MEDICAL EDUCATION

Page 28: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

1983 HIPPS 11.6%1983 HIPPS 11.6% 1986 DSH 8.1%1986 DSH 8.1% 1988 DSH EXPANSION 7.7%1988 DSH EXPANSION 7.7% 1997 BBA1997 BBA

TARGET 5.5% BY 2001TARGET 5.5% BY 2001 TARGET BEING REACHED 2008TARGET BEING REACHED 2008 RESIDENT CAPSRESIDENT CAPS

IME ADJUSTMENT HISTORYIME ADJUSTMENT HISTORY

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IME ADJUSTMENT 1984 - 2008IME ADJUSTMENT 1984 - 2008

THE TRUTH ABOUT IMETHE TRUTH ABOUT IME

1984 1987 1990 1993 1996 1999 2002 2005 2008

Fiscal year

0

2

4

6

8

10

12

14

IME

ad

justm

en

t p

erc

en

tag

e

Page 30: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

RESIDENT FTERESIDENT FTE

““SLOTS” / “CAPS” / “THE COUNT”SLOTS” / “CAPS” / “THE COUNT” USED IN DME AND IME FORMULASUSED IN DME AND IME FORMULAS BASE YEAR 1996BASE YEAR 1996 THREE YEAR ROLLING AVERAGETHREE YEAR ROLLING AVERAGE INITIAL ELIGIBILITY PERIOD = 1.0 INITIAL ELIGIBILITY PERIOD = 1.0

FTE / ALL ELSE = 0.5 FTEFTE / ALL ELSE = 0.5 FTE HOSPITAL VS AMBULATORYHOSPITAL VS AMBULATORY REDISTRIBUTION 2003 2500 SLOTS @ REDISTRIBUTION 2003 2500 SLOTS @

IME 2.7%IME 2.7%

Page 31: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

THE TRUTH ABOUT THE CAPTHE TRUTH ABOUT THE CAP

Page 32: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

DISPROPORTIONATE SHARE DISPROPORTIONATE SHARE FUNDING (DSH)FUNDING (DSH) HOSPITAL-SPECIFIC ADD-ON TO HOSPITAL-SPECIFIC ADD-ON TO

OPERATING AND CAPITAL OPERATING AND CAPITAL PAYMENTSPAYMENTS

MEDICAID DAYS/TOTAL PATIENT MEDICAID DAYS/TOTAL PATIENT DAYS + DUAL ELIGIBLE PATIENT DAYS + DUAL ELIGIBLE PATIENT DAYS/TOTAL MEDICARE PATIENT DAYS/TOTAL MEDICARE PATIENT DAYSDAYS

MINIMUM THRESHOLD - >100%MINIMUM THRESHOLD - >100% MULTIPLE FORMULAS BY HOSPITAL MULTIPLE FORMULAS BY HOSPITAL

SIZE AND LOCATIONSIZE AND LOCATION

TRULY INDIRECT GME: DSHTRULY INDIRECT GME: DSH

Page 33: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

DISPROPORTIONATE SHARE FUNDING DISPROPORTIONATE SHARE FUNDING (DSH)(DSH)

INTRODUCED 1986, EXPANDED 1988INTRODUCED 1986, EXPANDED 1988 ““POOR PATIENTS ARE MORE COSTLY POOR PATIENTS ARE MORE COSTLY

TO TREAT”TO TREAT” COST SHIFT TO MEDICARE PATIENTSCOST SHIFT TO MEDICARE PATIENTS TEACHING HOSPITALS LESS TEACHING HOSPITALS LESS

COMPETITIVECOMPETITIVE ““PUBLIC GOOD SUBSIDIZINGPUBLIC GOOD SUBSIDIZING

UNCOMPENSATED CARE”UNCOMPENSATED CARE”

TRULY INDIRECT GME: DSHTRULY INDIRECT GME: DSH

Page 34: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

DSH PAYMENTS % HOSPITAL DSH PAYMENTS % HOSPITAL BASE PAYMENTSBASE PAYMENTS

0

2

4

6

8

10

12

14

1987 1989 1991 1993 1995 1997 1999 2001 2003

Fiscal year

Per

cent

Page 35: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

CARING FOR THE POOR CARING FOR THE POOR ≠≠ DSH DSH

THE TRUTH ABOUT DSHTHE TRUTH ABOUT DSH

Page 36: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

MOST DSH GOES TO TEACHING MOST DSH GOES TO TEACHING HOSPITALSHOSPITALS

THE TRUTH ABOUT DSHTHE TRUTH ABOUT DSH

Urban Rural Major teaching Other teaching Non-teaching0

4

8

12

16

20

Pe

rce

nt

IME add-onDSH add-on

Page 37: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

TEACHING HOSPITAL MARGINSTEACHING HOSPITAL MARGINSMAJOR TEACHING HOSPITALS LEAD OVERALL MAJOR TEACHING HOSPITALS LEAD OVERALL

MEDICARE MARGIN CURVEMEDICARE MARGIN CURVE

OVERALL MEDICARE MARGIN 2002-2005 BY HOSPITAL GROUP

-10.0

-5.0

0.0

5.0

10.0

15.0

All

Majorteaching

Otherteaching

Nonteaching

Page 38: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

MAJOR TEACHING HOSPITALS TOTAL MARGINS MAJOR TEACHING HOSPITALS TOTAL MARGINS ARE COMPETITIVEARE COMPETITIVE

TEACHING HOSPITAL MARGINSTEACHING HOSPITAL MARGINS

Page 39: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

DMEDME $ 2.6 BILLION 2004$ 2.6 BILLION 2004 IMEIME $ 5.3 BILLION 2004$ 5.3 BILLION 2004 DME + IME = $ 7.9 BILLIONDME + IME = $ 7.9 BILLION DSHDSH $ 7.7 BILLION 2004$ 7.7 BILLION 2004 IME + DSH = 14% ALL ACUTE CARE IME + DSH = 14% ALL ACUTE CARE

HOSPITAL PPS PAYMENTSHOSPITAL PPS PAYMENTS TOTAL TO GMETOTAL TO GME $ 15.6 BILLION$ 15.6 BILLION

GME FUNDING: MEDICARE’S ROLEGME FUNDING: MEDICARE’S ROLE

Page 40: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

CREATED WITH MEDICARE IN 1965CREATED WITH MEDICARE IN 1965 VOLUNTARY PARTICIPATION BY VOLUNTARY PARTICIPATION BY

STATES (ALL SINCE 1982)STATES (ALL SINCE 1982) FEDERAL GUIDELINESFEDERAL GUIDELINES

MATCHING FEDERAL DOLLARSMATCHING FEDERAL DOLLARS STATE-ADMINISTEREDSTATE-ADMINISTERED

DEFINE ELIGIBILITY AND BENEFITSDEFINE ELIGIBILITY AND BENEFITS LOW INCOME + SPECIAL NEEDLOW INCOME + SPECIAL NEED

ON AVERAGE, 22% OF STATE BUDGETSON AVERAGE, 22% OF STATE BUDGETS

GME FUNDING: MEDICAID’S ROLEGME FUNDING: MEDICAID’S ROLE

MEDICAID BASICS

Page 41: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

MAKING GME PAYMENTS IS OPTIONAL MAKING GME PAYMENTS IS OPTIONAL FOR STATESFOR STATES 47 + DC MAKE PAYMENTS (IL, TX, ND)47 + DC MAKE PAYMENTS (IL, TX, ND) FORMULAS VARY BY STATEFORMULAS VARY BY STATE USUALLY PAID VIA PER CASE/PER DIEMUSUALLY PAID VIA PER CASE/PER DIEM

MOST ARE MATCHED BY FEDERAL MOST ARE MATCHED BY FEDERAL DOLLARSDOLLARS

TOTAL GME PAYMENTS BY STATES IN TOTAL GME PAYMENTS BY STATES IN 20062006 $3 BILLION$3 BILLION

GME FUNDING: MEDICAID’S ROLEGME FUNDING: MEDICAID’S ROLE

Page 42: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

CHILDREN’S HOSPITAL GME FUNDINGCHILDREN’S HOSPITAL GME FUNDING

CHGME AUTHORIZED 2000, CHGME AUTHORIZED 2000, REAUTHORIZED 2006-2011REAUTHORIZED 2006-2011

HEALTH RESOURCE SERVICES HEALTH RESOURCE SERVICES ADMINISTRATIONADMINISTRATION

ANNUAL APPROPRIATIONS FUNDING ANNUAL APPROPRIATIONS FUNDING IN LABOR-EDUCATION-HHS BILLIN LABOR-EDUCATION-HHS BILL

1/3 DME USING NATIONAL AVG PRA1/3 DME USING NATIONAL AVG PRA 2/3 IME FORMULA WITH CASE MIX, 2/3 IME FORMULA WITH CASE MIX,

VOLUME, TEACHING INTENSITYVOLUME, TEACHING INTENSITY $ 300 MILLION 2004 TO 61 HOSPITALS$ 300 MILLION 2004 TO 61 HOSPITALS

Page 43: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

DMEDME$ 2.6 BILLION 2004$ 2.6 BILLION 2004 IMEIME $ 5.3 BILLION 2004$ 5.3 BILLION 2004 DSHDSH $ 7.7 BILLION 2004$ 7.7 BILLION 2004 MEDICAIDMEDICAID $ 3 BILLION$ 3 BILLION CHGMECHGME $ 0.3 BILLION$ 0.3 BILLION TOTAL ANNUAL GOVERNMENT TOTAL ANNUAL GOVERNMENT

FUNDING TO GMEFUNDING TO GME $ 18.9 BILLION$ 18.9 BILLION

GME FUNDING: GOVERNMENT’S ROLEGME FUNDING: GOVERNMENT’S ROLE

Page 44: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

HUMAN RESOURCES ISSUESHUMAN RESOURCES ISSUES WORKFORCE SHORTAGEWORKFORCE SHORTAGE AAMC EXPANSIONAAMC EXPANSION BBA CAPBBA CAP

CONTROVERSIES AND CHALLENGESCONTROVERSIES AND CHALLENGES

Page 45: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

FUTURE GOVERNMENT FUNDINGFUTURE GOVERNMENT FUNDING MEDICARE SUSTAINABILITYMEDICARE SUSTAINABILITY MEDICAID MATCHINGMEDICAID MATCHING CHGME CONTINUATIONCHGME CONTINUATION DECLINING PART B FACULTY DECLINING PART B FACULTY

REVENUESREVENUES PART D EFFECTPART D EFFECT

CONTROVERSIES AND CHALLENGESCONTROVERSIES AND CHALLENGES

Page 46: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

MEDICARE’S FUTURE: BABY MEDICARE’S FUTURE: BABY BOOMERSBOOMERS

Page 47: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

MEDICARE’S FUTURE: BANKRUPTCYMEDICARE’S FUTURE: BANKRUPTCY

Page 48: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

$0$25$50$75

$100$125$150$175$200$225$250$275$300$325$350$375$400

1970 1980 1990 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Calendar Year

Do

llars

in B

illio

ns

Actual Income Actual Expenditures

Projected Income Projected Expenditures

Table 4.5Medicare Trustee’s Report: Part A Income and Expenses, 1970-2015

.Source: CMS, Office of the Actuary.Trustees Report, 2006.

Actual Projected

Projected Expenditures First Exceed Projected Income in 2011

Page 49: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

MEDICARE’S FUTURE: MEDICARE’S FUTURE: BENEFICIARIESBENEFICIARIES

Page 50: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

PART D: Rx DRUGSPART D: Rx DRUGS

SOURCE: MedPAC DATA BOOK, 2006SOURCE: MedPAC DATA BOOK, 2006

??

Page 51: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

SOURCE: DODOO, 2007 SOURCE: DODOO, 2007 RESIDENTSRESIDENTS 106,000*106,000*

GME PAYMENTS AND COSTS PER RESIDENTGME PAYMENTS AND COSTS PER RESIDENT

2001 2002 2003 2004 2005*

Medicare81258 84746 82058 87744 63917

Medicaid24508 26811 28363 29814 31235

Payments105766 111557 110421 117558 95152

Costs85858 92219 94614 96370 87414

?Overage19908 19338 15807 21188 7738

Page 52: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

CONTROVERSIES AND CHALLENGESCONTROVERSIES AND CHALLENGES WHY SHOULD MEDICARE PAY?WHY SHOULD MEDICARE PAY? WHAT IS MEDICARE BUYING?WHAT IS MEDICARE BUYING?

VALUEVALUE QUALITYQUALITY

WIDE VARIATION DME SUSPECTWIDE VARIATION DME SUSPECT MedPAC RECOMMENDS REDUCTION MedPAC RECOMMENDS REDUCTION

IMEIME

A REVIEW FOR COORDINATORSA REVIEW FOR COORDINATORS

Page 53: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

CONTROVERSIES AND CHALLENGESCONTROVERSIES AND CHALLENGES RULE-MAKING SHARPLY ELIMINATES RULE-MAKING SHARPLY ELIMINATES

FEDERAL MATCHING DOLLARS FOR FEDERAL MATCHING DOLLARS FOR MEDICAID GME PAYMENTS 2007MEDICAID GME PAYMENTS 2007 MORATORIUM TO JUNE 2008MORATORIUM TO JUNE 2008 MORATORIUM EXTENSION PASSED MORATORIUM EXTENSION PASSED

HOUSE ENERGY AND COMMERCE HOUSE ENERGY AND COMMERCE SUBCOMMITTEE ON HEALTH APRIL 9, SUBCOMMITTEE ON HEALTH APRIL 9, 20082008

A REVIEW FOR COORDINATORSA REVIEW FOR COORDINATORS

Page 54: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

CONTROVERSIES AND CONTROVERSIES AND CHALLENGESCHALLENGES

PRESIDENT’S FY 2009 PRESIDENT’S FY 2009 BUDGET ELIMINATES BUDGET ELIMINATES CHGMECHGME

A REVIEW FOR COORDINATORSA REVIEW FOR COORDINATORS

Page 55: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

? ALTERNATIVE FUNDINGALTERNATIVE FUNDING

? SPECIFIC APPROPRIATIONSPECIFIC APPROPRIATION? OUTCOMES REQUIREMENTSOUTCOMES REQUIREMENTS

? ALL PAYER FUNDALL PAYER FUND? REDUCTION RATES BY NON-GOVT REDUCTION RATES BY NON-GOVT

PAYERSPAYERS

? PROVIDER TAXESPROVIDER TAXES

? ALCOHOL + TOBACCO FEDERAL ALCOHOL + TOBACCO FEDERAL TAXTAX

A REVIEW FOR COORDINATORSA REVIEW FOR COORDINATORS

Page 56: KAREN R. BORMAN, MD, FACS MEDICARE and MEDICAID REIMBURSEMENT for GRADUATE MEDICAL EDUCATION A REVIEW FOR COORDINATORS.

KAREN R. BORMAN, MD, FACSKAREN R. BORMAN, MD, FACS

MEDICARE and MEDICAID MEDICARE and MEDICAID REIMBURSEMENT for REIMBURSEMENT for GRADUATE MEDICAL GRADUATE MEDICAL

EDUCATIONEDUCATION