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Resident Physician Forum
May 26, 1999

How Medicare Calculates GME Payments, Part I

Author Affiliations
 

Prepared by Ashish Bajaj, Department of Resident and Fellow Services, American Medical Association.

JAMA. 1999;281(20):1958A. doi:10.1001/jama.281.20.1958

Several groups in the federal government have been studying graduate medical education (GME) funding with the intent of reforming the current system. In an effort to better prepare residents for the debates and discussions on GME funding, recent Resident Physician Forum columns have described these groups and their deliberations and have discussed some of the issues being raised. In this and the next column, we will summarize the current methods used to calculate payments to hospitals.

Before the Medicare program was created, GME was funded directly by the hospital. Residents were provided with a small cash stipend, room, board, laundry, and other services. Some of these costs were recovered directly or indirectly from insurance payments.

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