To continue on from yesterday’s beginning financial flows in OGME are the next topic.
· Last week Bloomberg Government released a study that discussed the impact of several cuts in payment from Medicare for Graduate Medical Education. The bottom line is that both the Simpson-Bowles Commission’s proposed $60 billion cut over 10 years and President Obama’s ~ $10 billion over 9 years would have a significant impact. One of the most interesting findings – a particularly ominous one for OGME and the osteopathic profession – is the notion that the cuts would disproportionately impact primary care. This is because Medicare pays hospitals for medical education and primary care is not done in hospitals. As hospitals look to recoup the lost revenue, it holds that they may wish to have more service for the trainees. Trainees that provide service to hospitals are specialty trainees, not primary care trainees.
· The second financial concern on the minds of osteopathic directors of medical education (DMEs) is the now enacted fee change for OGME programs. This was enacted by the Executive Committee of the AOA Board in early December. Some might remember that there was a great deal of concern surrounding this policy amongst DMEs last Spring. blOGME commented on the topic in the inaugural post and again here and here. I’m sure that we can expect more comment in Louisville in April.
· The final financial concern on the DME mind is the stability of hospitals where OGME takes place. There has been no shortage of hospital consolidations, bankruptcies and closures over the last ten plus months. Again, OGME may be disproportionally impacted in this arena as more community hospitals are targeted. We have seen hospitals in New York, Michigan and Pennsylvania mentioned. What impact lasting consequences this has on OGME remain to be seen.
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