AAMC Statement on BBA Relief Legislation
Jordan J. Cohen, M.D., President
Association of American Medical Colleges
November 16, 1999

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The Association of American Medical Colleges (AAMC) appreciates the collaborative effort on the part of Congress and the Clinton Administration to secure a measure of relief for all healthcare providers--including U.S. teaching hospitals--from the debilitating Medicare cuts authorized by the Balanced Budget Act of 1997 (BBA).

The legislative remedies are a clear acknowledgement by federal lawmakers that teaching hospitals and faculty do indeed provide unique services worthy of special support. The true beneficiaries of this legislation are the patients who will continue to benefit from the primary products of teaching hospitals-the education of highly skilled doctors, the conduct of life-enhancing clinical research, and the delivery of quality patient care.

We are particularly pleased that the concerns raised by the teaching hospital community regarding steep cuts to the indirect medical education (IME) payments are addressed in the BBA relief legislation. In addition, the legislation agreed to by the House and Senate addresses the problematic changes being made to outpatient payments and eases the cuts in disproportionate share payments (DSH).

While the AAMC is gratified that U.S. teaching hospitals will receive some relief from the BBA cuts, the Association recognizes that Medicare is one of only a number of payers placing financial pressure on teaching hospitals. We hope that the collective goodwill experienced during this current BBA debate will carry over into future discussions to create a stable stream of revenue that eases these pressures and supports the education, research, and patient care missions of teaching hospitals, medical schools, and faculty.

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The Association of American Medical Colleges represents the 125 accredited U.S. medical schools; the 16 accredited Canadian medical schools; some 400 major teaching hospitals, including 74 Veterans Administration medical centers; 91 academic and professional societies representing nearly 88,000 faculty members; and the nation's 67,000 medical students and 102,000 residents.

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