Medicare: Indirect Medicare Education Payments Are Too High
HRD-89-33
Published: Jan 05, 1989. Publicly Released: Jan 05, 1989.
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Highlights
Pursuant to a legislative requirement, GAO: (1) examined the factors responsible for the variations in patient costs and Medicare payments among teaching and nonteaching hospitals; and (2) estimated the adjustment needed to compensate teaching hospitals for the indirect cost of medical education.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should reduce the teaching adjustment factors for fiscal years 1989 through 1995, and for 1996 and beyond, to levels shown by GAO analysis of Medicare costs. Should Congress wish to use the savings from the lower payments to teaching hospitals to reduce overall Medicare outlays, the legislation should specifically reflect that decision. Congress should also include provisions directing the Secretary of Health and Human Services to periodically reestimate the effects of graduate medical education on Medicare costs, based on the most current hospital cost data available at the time. |
Closed – Implemented
|
Section 4621 of the Balanced Budget Act of 1997 significantly reduces the indirect medical education adjuster, phasing in the reduction over fiscal years 1998-2000. |
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Topics
Education or training costsHealth care cost controlHospital care servicesHospitalsMedical economic analysisMedical educationMedical services ratesMedicarePatient care servicesPatient care