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Contact: Media Relations Officer
AAMC STATEMENT ON BBA RELIEF AND LABOR-HHS FUNDING
Jordan J. Cohen, M.D., President
Association of American Medical Colleges
December 19, 2000
The federal budget package approved by Congress and the White House is good for medical schools and teaching hospitals as well as the patients they serve. The bill recognizes that the true benefits of research, education and patient care cannot be realized without financially strong medical schools and teaching hospitals that are able to create an environment for quality health care.
BBA Relief
The AAMC is particularly gratified that the White House and Congress have once again made an effort to ameliorate the unintended, yet damaging, consequences of the Balanced Budget Act of 1997 (BBA). The $35 billion BBA package will provide much needed relief for health care providers across the country, particularly the nation's major teaching hospitals. Of specific importance are provisions in the legislation related to the indirect medical education payments (IME), which call for the IME rate to be held at 6.5 percent in 2001 and 2002. This will return an additional $700 million to teaching hospitals.
Success in garnering a second year of BBA relief would not have been possible without the tireless work of the leadership in academic medicine. In addition, the Coalition to Protect America's Health Care served, and will continue to serve, as a powerful and unified voice for the health provider community.
Labor-HHS Funding Bill
The AAMC applauds the Congress for finalizing funding increases for the federal agencies tasked with supporting research, education and public health programs. The AAMC thanks the congressional leadership on both sides of the aisle for generously supporting the vital work of the National Institutes of Health (NIH). The 14 percent increase ($2.5 billion) for NIH is a considerable federal commitment that will allow for the continuation of medical and health research that promise cures, treatments, and prevention of disease.
The $71 million (35.8 percent) increase for the Agency for Healthcare Research and Quality (AHRQ) recognizes the vital contribution AHRQ is, and will be, providing in areas such as health disparities research and medical error reduction. In addition, we applaud the increased funding ($51 million or 16. 9 percent) for the Health Resources and Services Administration's health professions and nursing education programs.
Contact: Jennifer Bush (202) 828-0041
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