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Washington Highlights: September 12, 2008

AAMC Submits Amicus Brief on IME Count

The AAMC Aug. 22 submitted an amicus curiae brief to the U.S. Court of Appeals for the First Circuit in a case that involves the question of whether time spent in research and other scholarly activity by medical residents should be included in the Medicare Indirect Medical Education (IME) count of full-time equivalent (FTE) residents. In Aug. 2007, Rhode Island Hospital received a favorable District Court decision that involved the IME resident count for 1996. The government appealed the court's decision.

The AAMC's brief argues that "excluding time spent in research and other scholarly activities because they do not occur within 'areas' (defined by the nature of the resident's services, and not the geographical location of his/her assignment) of the hospital subject to the prospective payment system simply ignores the indisputable fact that research and scholarly activities are part of 'teaching activities' in an approved program."

A favorable Appeals Court decision may be helpful to other hospitals that are appealing IME exclusions related to research prior to the implementation of a 2001 regulation. In 2001, the Centers for Medicare and Medicaid Services (CMS) issued a regulation that excludes time residents spend in research from the IME, so even if the Circuit Court issues a favorable opinion, it will not have an effect on resident counts for reporting periods after the rule became final.

Information:
Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.org
(202) 828-0490

Senate Approves ADA

The Senate Sept. 12 approved by voice vote its version of the "ADA Amendments Act of 2008" (S. 3406), a bill that clarifies and broadens the definition of disability and expands eligibility for protections under the Americans with Disabilities Act (ADA). The House reportedly will consider the Senate bill on Sept. 17.

The legislation eliminates the idea set forth by the Supreme Court that mitigating measures should play a part in determining whether an individual has a disability, and clarifies the definition of "substantially limits" with regard to the effect a disability has on major activities in a person's life.

In his floor statement, Senator Orrin Hatch (R-Utah) noted an attempt to "minimize the impact this bill would have in the educational arena." At the request of the higher education community, the measure includes a provision affirming the underlying ADA provision that accommodations or modifications in policies, including "academic requirements in postsecondary education," are not required if making such modifications would demonstrably "fundamentally alter" educational standards.

The AAMC joined with 7 other educational testing groups to send July 14 letters to both the Senate and the House, expressing concerns about the "unintended and negative consequences the proposed legislation would have on individuals and institutions involved in higher education, on entities that administer and rely upon standardized tests, and on the public that is served by the physicians, lawyers, engineers, and other professionals whose certification and licensing depends, in part, on the results achieved on such examinations" [see Washington Highlights, July 18].

Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

House Panel Explores Implementation of NIH Reauthorization Legislation

The House Energy and Commerce Health Subcommittee Sept. 9 held a hearing on the impact of the NIH Reform Act of 2006 [P.L. 109-482] on the operations of the National Institutes of Health (NIH). NIH Director Elias Zerhouni, M.D. noted the agency is using new authorities to enable and expedite trans-NIH research, funded through the Common Fund, an appropriations line item authorized by the NIH Reform Act. NIH recently issued a new Biennial Report, required by the Act, which explains NIH programs to Congress in one consolidated and transparent publication. He also described the progress being made on "an open and electronic disease funding report" also required by the legislation.

Dr. Zerhouni also announced the membership of the Scientific Management Review Board (SMRB), which was mandated by the NIH Reform Act to conduct periodic organizational reviews, issue reports on organizational issues, and advise the NIH on the use of its management authorities. The SMRB was chartered in August 2007.

Several Democrats on the subcommittee criticized the Administration for not providing increased funding for the agency. Subcommittee Chair Frank Pallone (D-N.J.) noted that the flat funding of the NIH budget had resulted in a 14 percent decrease in real dollars. Responding to a question from Rep. Diana DeGette (D-Colo.) about the impact of the flat budget, Dr. Zerhouni identified three top priorities: maintaining an adequate workforce; sustaining the investment in a predictable, long-term manner; and maintaining the success rate for scientists receiving NIH grants. Saying that a success rate of 25 percent is the bare minimum, he noted that the enterprise has done well with a success rate of 30 percent.

Rep. Tammy Baldwin (D-Wis.) asked about the strategy of funding more but smaller Clinical Translational Science Awards (CTSAs). Dr. Zerhouni replied that the CTSA awards were intended to be a "leveraging investment" rather than a "resource grant" and the recipient institutions could seek funding from other institutes and centers. He also stated the decision on the total number of awards has not been finalized.

Energy and Commerce Ranking Member Joe Barton (R-Texas), who authored the NIH Reform Act when he chaired the committee, asked about the potential impact of legislative proposals to create disease specific structures and programs. Dr. Zerhouni said the issue is implementing programs that do not become entitlements and encouraged flexibility regarding congressional mandates. He expanded this point in his written testimony, cautioning the panel "it would be a grave mistake to go backwards in mandating disease-specific research at a time when barriers need to be torn down, not rebuilt."

Dr. Zerhouni ended the hearing by saying the nation needs a mechanism to make long-term capital investments in science.

Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

NIH Announces Scientific Management Review Board Members

The National Institutes of Health (NIH) Sept. 9 announced the nomination of 21 individuals to serve on the newly chartered Scientific Management Review Board (SMRB). The NIH Reform Act of 2006 [P.L. 109-482] mandated the creation of the board, which will conduct periodic organizational reviews, issue reports on organizational issues, and advise the NIH on the use of its management authorities.

Norman R. Augustine, the former chairman of the executive committee of Lockhead Martin Corporation, has been nominated to serve as the board's first chairman. Several members of the SMRB are leaders from academic medicine, including: William R. Brody, M.D., Ph.D., President, Johns Hopkins University; Deborah Powell, M.D., Dean and Assistant Vice President for Clinical Science, University of Minnesota Medical School; William Roper, M.D., Dean, University of North Carolina School of Medicine, and CEO on UNC Healthcare; Arthur Rubenstein, M.D., Executive Vice President, University of Pennsylvania Health System and dean, University of Pennsylvania School of Medicine; Harold Varmus, M.D., President, Memorial Sloan-Kettering Cancer Center; Eugene Washington, M.D., Executive Vice Chancellor, and Chair, Obstetrics, Gynecology, and Reproductive Sciences, University of California, San Francisco; and Huda Zoghbi, M.D., professor, Baylor College of Medicine.

At a Sept. 9 House Energy and Commerce Committee hearing (see related story), NIH Director Elias Zerhouni, M.D., stated that the panel will be independent and that "the scope and breadth of their work will be determined by their own independent judgments."

Informaton:
Tony Mazzaschi, Senior Director
AAMC Scientific Affairs
tmazzaschi@aamc.org
(202) 828-0059

HHS Publishes "Provider Conscience Regulation" Proposed Rule

The Department of Health and Human Services (HHS) Aug. 26 issued a proposed rule, "Ensuring that Department of Health and Human Services Funds Do Not Support Coercive or Discriminatory Policies or Practices in Violation of Federal Law," that would withhold federal funding to health care entities that fail to accommodate employees that object to participation in any medical service or procedure that conflicts with their personal, moral or religious convictions. It also requires a written certification by recipients and sub-recipients of HHS funds that they operate in compliance with the Church Amendments, section 245 of the Public Health Service Act, and the Weldon Amendment to the FY 2008 Consolidated Appropriations Act [P.L.110-161]; these three provisions prohibit recipients of federal funds from discriminating against individuals in the health care field on the basis of their religious or moral beliefs.

An HHS impact analysis concluded over 584,000 health care entities, including medical schools, hospitals, nursing homes, and physician offices, will be affected by the proposed regulation at a total expected cost of $44.5 million per year.

Comments must be submitted by Sept. 25. The AAMC will be submitting comments.

Information:
Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.org
(202) 828-0490

Will Dardani, Constituent Services Specialist
AAMC Health Care Affairs
wdardani@aamc.org
(202) 828-0541

Grassley, Welch Hold Roundtable on University Endowments

Senate Finance Committee Ranking Member Charles Grassley (R-Iowa) and Rep. Peter Welch (D-Vt.) Sept. 8 held a roundtable on "Maximizing the Use of Endowment Funds and Making Higher Education More Affordable." The roundtable was divided into three panel topic areas: 1) college costs and rising tuition; 2) charitable contributions and university endowments; and 3) a proposed mandatory annual endowment payout for student financial aid. Panelists included representatives from the Congressional Research Service (CRS), higher education associations, academic institutions, finance industry and other groups.

Questioning university endowment spending, Sen. Grassley stated "If the endowment per student includes graduate students, shouldn't endowment spending include assistance for graduate students so that future teachers, social workers and health care professionals can work in underserved areas without worrying about their debt load?" He added that "Congress would be remiss if it didn't question what benefits tax-exempt colleges and universities provide in return for all of the federal benefits they receive."

Sen. Grassley concluded his opening remarks by asking the Internal Revenue Service (IRS) to develop a separate Form 990 Schedule for colleges and universities similar to the new Schedule H for hospitals. The new Schedule would focus on endowment spending, the student population, and education costs.

Most of the panelists agreed that increased transparency in endowment spending and educational costs would be beneficial, but that a mandated annual endowment payout would be problematic. Their testimony reflected that a primary difficulty in analyzing education costs is the complexity of and variance in funding sources, academic needs, and individual institutions' spending:

  • Anthony Marx, Ph.D., President, Amherst College, noted that while tuition has increased across the board, it had generally decreased as a percentage of total funding contributions at education institutions nationwide. He added that this lost funding is made up by endowment spending and charitable contributions.
  • David Shulenburger, Vice-President, Academic Affairs, National Association of State Universities and Land Grant Colleges, noted that decreased state education appropriations and federal research funding required flexible use of endowments.
  • Daniel Fogel, Ph.D., President, University of Vermont, pointed out that generally 35 to 40 percent of annual endowment spending at institutions with medical schools was directed to medical education expenditures.
  • Shirley Tilghman, Ph.D., President, Princeton University, and Vice-Chair, Association of American Universities, noted that expansions in academic fields, such as genomics, will continue to increase institutional costs. She also echoed Dr. Shulenburger's remarks that decreasing research funds greatly increases individual university contributions for research infrastructure.
  • Blake Naughton, Ph.D., Analyst in Education Policy, CRS, added that while state appropriations for higher education have increased, their contributions have decreased as a percentage of the total share of educational revenues.

A full webcast of the roundtable is available on the Senate Finance Committee website.

Information:
Matthew Shick, Senior Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 862-6116

House Panel Examines NIH Public Access Policy

The House Judiciary Subcommittee on Courts, the Internet, and Intellectual Property Sept. 12 held a hearing on the "Fair Copyright in Research Works Act" (H.R. 6845), which seeks to reverse the National Institutes of Health (NIH)'s recently implemented public access policy [see Washington Highlights, Jan. 18].

The policy, included in the FY 2008 Consolidated Appropriations Act [P.L. 110-161], requires all NIH-funded investigators to ensure that their final, peer-reviewed manuscripts are submitted to the National Library of Medicine (NLM) within 12 months of publication, "in a manner consistent with copyright law." Critics of the policy argue that requiring free public access to the copyrighted material will have a negative impact on scientific journal subscriptions and will remove the incentive for the journals to invest in peer review processes.

Witnesses included George Washington University law professor Ralph Oman, J.D., and Executive Director of the American Physiological Society, Martin Frank, Ph.D., who argued that the public access policy is not consistent with copyright law, and NIH Director Elias Zerhouni, M.D., and Executive Director of the Scholarly Publishing and Academic Resources Coalition Heather Dalterio Joseph, who defended the NIH policy. Dr. Zerhouni noted that many publishers already provide free access to journal articles after 12 months and that providing uniform access to the results of publicly funded research through NLM's PubMed Central website will allow digital and conceptual linkages to the full range of NIH scientific databases.

At the hearing, Judiciary Committee Chair John Conyers (D-Mich.), who introduced H.R. 6845, expressed concern that the committee had not had the opportunity to examine the provision before it was added to the spending bill. Subcommittee Chair Howard Berman (D-Calif.) inquired whether the approach included in the America COMPETES Act [P.L. 110-69] - which requires publicly accessible summaries of journal articles resulting from National Science Foundation-funded research - could serve as a "middle ground" solution.

Information:
Tannaz Rasouli, Senior Legislative Analyst
AAMC Government Relations
trasouli@aamc.org
(202) 828-0525

National Academies Panel Revises Guidelines for Human Embryonic Stem Cell Research

The National Academies' Human Embryonic Stem Cell Research Advisory Committee Sept. 5 released amendments to the National Academies' Guidelines for Human Embryonic Stem Cell Research. The Guidelines were first issued in 2005 and updated in 2007. The changes approved by the panel in the latest revision include:

  • Clarifying that "direct expenses" for reimbursement to women donating their eggs for use in stem cell research may include costs associated with travel, housing, child care, medical care, health insurance, and actual lost wages.
  • Recommending that the public be informed about the types of stem cell research under way at an institution and how the research conforms to the institution's established procedures. Moreover, the committee strongly suggested as a good management practice that institutions conducting human embryonic stem cell research carry out periodic audits of their embryonic stem cell research oversight (ESCRO) committees to ensure proper performance and make the findings of the audits publicly available.
  • Clarifying that an institutional ESCRO committee may conduct expedited review for research done exclusively in a laboratory dish or test tube that does not create new lines of stem cells but uses previously derived human embryonic stem cell lines.

The panel also modified its guidance on the derivation and use of stem cells in light of the development of "induced pluripotent cells." The panel noted that although induced pluripotent stem cells can be derived without using embryos, the ethical and policy concerns related to their potential uses are similar to those pertaining to human embryonic stem cells. The panel said that derivation of induced pluripotent stem cells does not require special stem cell expertise and is adequately covered by current Institutional Review Board regulations.

Information:

Tony Mazzaschi, Senior Director
AAMC Scientific Affairs
tmazzaschi@aamc.org
(202) 828-0059