Washington, D.C., July 17, 2003 - Association of American Medical Colleges (AAMC) President Jordan J. Cohen, M.D., issued the following statement today on the Institute of Medicine's report, "Academic Health Centers: Leading Change in the 21st Century":

"The Institute of Medicine's (IOM) report is a commendable and comprehensive plan for improving clinical education, patient care and research at our nation's academic health centers. On behalf of our members, AAMC applauds the IOM for their acknowledgement of the leadership role that medical schools and teaching hospitals play in the ongoing effort to meet the future healthcare needs of Americans.

We also appreciate the IOM's recognition that current funding sources are insufficient to meet the goals outlined in the report. The development of an "education innovation fund" is an admirable concept and one the AAMC supports. However, we strongly disagree with the method the IOM proposes to create this fund. Recommending that a portion of the Medicare Indirect Medical Education (IME) payments be redirected for this purpose fails to recognize the difficult financial realities now facing the nation's medical schools and teaching hospitals. IME payments are a critical source of funding for the current important societal missions and activities of these healthcare institutions.

Academic health centers struggle every day to survive in an environment of diminishing resources. IME payments are already down 30 percent over the past five years; payments by Medicaid and private insurers have been constrained; and funding for Title VII health professions programs may be cut by 93 percent. If IME payments are slashed further, the very infrastructure upon which our nation's healthcare system rests may well begin to falter. For this reason, we hope the IOM will come forward with a more realistic funding alternative.

AAMC looks forward to working with the IOM and other members of the healthcare community to achieve the worthy goals set out in the report.

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The Association of American Medical Colleges is a not-for-profit association representing all 129 accredited U.S. and 17 accredited Canadian medical schools; nearly 400 major teaching hospitals and health systems, including 68 Department of Veterans Affairs medical centers; and 94 academic and scientific societies. Through these institutions and organizations, the AAMC represents 109,000 faculty members, 67,000 medical students, and 104,000 resident physicians. Additional information about the AAMC and U.S. medical schools and teaching hospitals is available at www.aamc.org/newsroom.

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