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Alternative Methods of Financing Graduate Medical Education

Publication Date
Apr 30, 2006

Presented to: Lynn Nonnemaker, PhDDHHS/OS/ASPE

Presented by: NORCA national organization for research at the University of Chicago


The purpose of this study was to evaluate the current system of financing for graduate medical education (GME) and to assess the strengths and weaknesses of alternative methods for GME financing. In completing the project researchers from RAND performed a literature review and held discussions with experts in the United States and abroad. The study identified a number of ways in which the Medicare program's support for GME could be improved. Most of these improvements center on changes to the formulas used to determine the level of payments Medicare makes to teaching hospitals. The report also identified five elements on which to evaluate any alternatives to the current system equity, adequacy, efficiency, accountability, and administrative feasibility. The report made no specific recommendations. [183 PDF pages]