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Graduate Medical Education (GME): Payments to Teaching Hospitals

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Contact GME Team
Contact Regulatory and Policy Team

Medicare makes payments to teaching hospitals for training residents and fellows in approved training programs. Medicare’s direct graduate medical education (DGME) payments cover a portion of the direct costs of training residents. Additionally, Medicare provides teaching hospitals with an indirect medical education (IME) adjustment that considers the complex patients they treat and the services teaching hospitals provide to their communities such as standby capacity in trauma centers and burn units. 

Regulatory changes affecting Medicare DGME and IME payments are often included in the annual Medicare Inpatient Prospective Payment System (IPPS) regulation. The Centers for Medicare & Medicaid Services (CMS) releases the IPPS proposed rule between late April and early May and publishes the IPPS final rule in early August; these changes generally become effective on Oct. 1.

Learn more about these changes using the resources listed below.

FY 2022 IPPS Final Rule: GME Provisions


Comment Letter (PDF)

AAMC GME Reference Publications

AAMC-Hosted Department of Veterans Affairs (VA) GME Webinars


PowerPoint Presentations (PDF)

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