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Government Affairs Home > Teaching Hospitals > Medicare Inpatient PPS > Historical Regulations & AAMC Summaries

Fiscal Year 1998 Prospective Payment System: Final Rule

Related Resources

AAMC Documents

Current Status as of September 1, 1998

On May 12, 1998 the Health Care Financing Administration (HCFA) published a rule that contains the final regulations for many of the graduate medical education provisions included in the Balanced Budget Act of 1997 (BBA). This rule contains HCFA's replies to the comments it received in response to the August 29, 1997 interim final rule, primarily related to the limitation on the number of residents which Medicare will count for direct and indirect graduate medical education provisions ("resident limits or caps"). The AAMC has prepared a detailed summary and analysis of the final rule.

Summary

The regulations govern both indirect medical education (IME) and direct graduate medical education (DGME) payments. The May 12, 1998 rule contains comments submitted in response to the August 29, 1997 interim final rule. HCFA modified several provisions that were part of the August 29 publication. These modifications will help institutions trying to operate within the resident limits. They include:

  • increasing the flexibility for hospitals that wish to aggregate their resident limits by allowing program affiliations and broadening the geographic areas to include contiguous areas;
  • broadening the definition of "new residency program" to include training programs that received initial accreditation OR began training residents on or after January 1, 1995; and
  • permitting the resulting entity of a merger to have a cap that is an aggregate of the participating hospitals' caps.

At the same time, the final rule was not modified to reflect comments on other issues, such as expanding existing programs and modifying resident limits to address downsizing decisions by VA hospitals.

The summary and analysis document prepared by the AAMC contains detailed information on the regulatory requirements related to resident limits, 3-year rolling average, resident limit affiliation agreements, and new residency programs.

AAMC Action

The AAMC submitted comments on the August 29, 1997 interim final rule. The AAMC has also prepared a summary and analysis of the regulations.

Contacts

Robert Dickler, Chief Health Care Officer
AAMC Health Care Affairs
rdickler@aamc.org
(202) 828-0490

Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

The May 12, 1998 final rule is available in text format and Portable Document Format (PDF):

42 CFR Parts 410 et al.
Medicare Program: Changes to the Hospital Inpatient Prospective Payment Systems and Fiscal Year 1998 Rates; Final Rule
pp. 26317-26360

The August 29, 1997 interim final rule is available in four parts in text format and Portable Document Format (PDF):

42 CFR Parts 400, 409, et al.
Medicare Program; Changes to the Hospital Inpatient Prospective Payment Systems and Fiscal Year 1998 Rates; Interim Final Rule

  • Part I [pp. 45966-46015]: Text | PDF
  • Part II [pp. 46016-46066]: Text | PDF
  • Part III [pp. 46066-46116]: Text | PDF
  • Part IV [pp. 46116-46140]: Text | PDF

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