Medicare overpays hospitals $1B each year for graduate medical education, study finds

Medicare overpaid hospitals about $1.3 billion in 2015 for the government's Teaching Health Center Graduate Medical Education program, according to a study published in JAMA Internal Medicine.

The Graduate Medical Education rate is $150,000 per resident. While 25 percent of hospitals received less than $106,000 per resident in 2015, 25 percent received more than $182,000 per resident. That same year, nearly half of teaching hospitals got more than $150,000 per resident.

If Medicare GME payments were capped at the $150,000 rate, researchers predict Medicare would save more than $1 billion every year.

"Our study suggests Medicare GME may be overpaying some hospitals up to $1.28 billion annually," said Candice Chen, MD, lead study author and associate professor of health policy and management at the George Washington University Milken Institute School of Public Health in Washington, D.C. "Those funds could be redirected and used to strengthen the physician workforce, especially in underserved areas."

More articles on payers:
BCBS of North Carolina needs to rebuild trust. It won't be easy, analysts say
Cambia, BCBS of North Carolina call off affiliation for now
UnitedHealthcare issues layoffs in Minnesota

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months