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Senate Approves CHGME Reauthorization

November 15, 2013—The Senate Nov. 12 passed by unanimous consent legislation (S. 1557) that would reauthorize funds for the Children’s Hospital Graduate Medical Education (CHGME) Payment Program. Administered by the Health Resources and Services Administration (HRSA) and funded under the Public Health Service Act, the CHGME program supports graduate medical education (GME) programs at freestanding children’s hospitals.

Introduced by Sens. Bob Casey (D-Pa.) and Johnny Isakson (R-Ga.), the bipartisan bill (the “Children’s Hospital GME Support Reauthorization Act of 2013”) reauthorizes the program at $300 million annually through fiscal year 2018.

Additionally, S. 1557 authorizes the Secretary of Health and Human Services to direct a portion of CHGME payments to certain hospitals with approved residency programs that: are exempt from Medicare’s prospective payment system (“PPS-exempt” hospitals); treat inpatients who are “predominantly individuals under 18 years of age”; and are otherwise not qualified to receive GME payments under Medicare. Total awards under this section could equal up to 25 percent of any CHGME appropriations in excess of $245 million, but could not exceed $7 million.  The secretary may establish residency caps for this group of teaching hospitals.

Under the bill, the secretary also may establish a “quality bonus system” for distributing to participating hospitals on an annual basis any unspent CHGME funds. To receive quality bonus payments, CHGME-eligible hospitals would have to meet certain standards, such as training in community-based settings, delivering patient-centered care, or practicing in integrated health systems. The secretary would work with “relevant stakeholders” (e.g., accrediting bodies, certifying boards, providers, patient/consumer groups) to develop these standards.

The House still must approve the bill. 


Christiane Mitchell
Senior Director Health Care Affairs
Telephone: 202-828-0461


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Washington Highlights, a weekly electronic newsletter, features brief updates on the latest legislative and regulatory activities affecting medical schools and teaching hospitals.

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Jason Kleinman
Sr. Legislative Analyst, Govt. Relations
Telephone: 202-903-0806