We would like to make you aware of a potential GME funding opportunity. Pursuant to Section 5506 of the Patient Protection and Affordable Care Act, the Centers for Medicare & Medicaid Services (CMS) recently announced additional resident slots available for redistribution from closed teaching hospitals.
Interested hospitals must complete a six-page “CMS Application Form as Part of the Application for the Increase in a Hospital’s FTE Cap(s) under Section 5506 of the Affordable Care Act: Preservation of FTE Cap Slots from Teaching Hospitals that Close” for each residency program for which the hospital intends to use the requested FTEs.
The form requires the following information, including supporting documentation, as applicable:
- Cover sheet
- Demonstrated likelihood criteria of filling the FTE slots
- Level priority category
- Ranking criteria
- Signed attestation
- Copy of selected sections of the most recent Medicare cost report
Two application cycles are currently open:
- Round 5 – due August 29, 2013
- Round 6 – due October 31, 2013
In light of GME funding pressures, the potential to secure additional FTE slots can represent a significant opportunity for teaching hospitals. Depending on your hospital’s specific characteristics, the potential reimbursement per additional slot can equate to $100,000 or more annually. Furthermore, the experience of our clients and others throughout the industry in past rounds of redistribution has revealed that the slots have sometimes been distributed in unexpected ways (i.e., hospitals that did not meet the highest-priority criteria still received slots). The program also offers an opportunity for increased alignment with local physician workforce needs. Therefore, the investment required (e.g., personnel, time) to complete the application is relatively minimal compared to the potential benefits to the hospital and GME programs.