Teaching hospitals and medicare

When a Medicare Recipient receives services from a teaching hospital, the covered services are often paid promptly. As the Medicare program recognizes the value and contributions to the industry given by the teaching hospitals, they have also made arrangements to supply two forms of special payments in the goal of supporting the ongoing training programs for physicians, nurses and allied healthcare professionals. Herein we will examine related issues to the Medicare payment for graduate medical education (GME) and the indirect counterpart deemed IME.

The difference between the two payment programs is that GME payments are made to the teaching hospital to pay for the direct and primary expense of training the future doctors and nurses. An example of this type of expense would be medical residents salary, hospital overhead, and faculty compensation. In contrast, the IME payments capture the indirect costs associated wit the care of the patients. Examples of this would be the cost that is associated with providing a broader range of services, intensive treatments, caring for treating patients in debilitating circumstances.

Teaching hospitals services benefit both Medicare and non Medicare reciepants. In addition to educating and training healthcare professionals, teaching hospitals are essential in the developing medical research fields, as well as designing, creating and improving on technological advancements. The goal for the payments is to enhance to viability of the institutions, and thereby extend the success and services to all Medicare patients and beyond.

Medicare makes the GME and IME payments through the use of Part A of the Medicare program. Medicare makes the GME payments to each teaching hospital based on the specialties and quantity of the residents in training. They then balance this against 'historical costs' and Medicare patient volume. IME payments appear as a unique adjustment in the prospective payment system, or the method in which Medicare reimburses hospitals for inpatient services. The IME payment levels are determined by the number of student residents available for each hospital bed, this becomes a proxy to indicate the intensity of the hospitals teaching programs.

The coverage for these programs come for the Medicare budget. With a positive goal of saving lives and further establishing continued support, the Medicare Teaching Hospital Benefits will continue to be extended through out the medical field. As Medicare supports the new advancements, the development of new doctors, nurses and healthcare professionals the communities will continue to benefit from the services and experience developed in the Teaching Hospitals.